Nigeria’s Bonny Light Crude Price Rises to $70.25
Nigeria’s Bonny Light crude oil surged to $70.25 per barrel this week due to increased demand from some trading partners despite bearish trading activities in the global commodity market.
Bonny Light grade bucked the global downtrend, rising by 1.39% to close at $70.25 per barrel, supported by sustained demand from key export markets.
Production output in Nigeria has increased due to increased investment and a significant decline in oil theft. Crude oil prices retreated sharply over the week, with Brent crude down 0.62% to $66.40 per barrel and the US benchmark WTI shedding 0.81% to $63.40 per barrel.
The pullback was fuelled by multiple bearish catalysts, including OPEC+’s announcement of a potential supply increase, rising trade tensions between major economies, a decline in US crude exports, and persistent uncertainty over sanctions on Russian energy.
These factors spurred broad-based selling in the energy markets.
However, headwinds from a stronger US dollar and softening crude prices could limit further gains. Barring major shocks in global markets, the currency should hold steady, with intermittent pressure from external factors. In the parallel market, rates are also projected to remain unchanged, unless speculative demand or supply constraints arise.
Latest data from the Central Bank of Nigeria (CBN) revealed that the external reserves grew by 1.07% week- on-week to $40.72 billion, boosted by improved foreign inflows. This increase could provide a buffer against external shocks and help stabilise the naira in the near term. #Nigeria’s Bonny Light Crude Price Rises to $70.25#
