Nigerian Crude Trades at Premium to Brent Amid Global Market Shifts
Lagos, Nigeria – Nigeria’s benchmark crude grades traded at a slight premium to Brent crude this week as geopolitical developments and supply-demand dynamics continued to influence global oil markets.
Nigerian Crude Outperforms Brent
On Friday, Nigeria’s key export blends—Brass River, Bonny Light, and Qua Iboe—closed at $67.30 per barrel, edging above the Brent crude benchmark, which settled at $66.04. The uptick comes as traders cautiously monitor U.S.-China trade negotiations, which could shape near-term demand sentiment.
While crude prices dipped slightly on Monday, with Brent falling to $66.04 and WTI (U.S. crude) dropping 4 cents to $64.05, both benchmarks retained most of last week’s gains. Brent posted a 4% weekly increase, its strongest performance in weeks, buoyed by optimism over potential trade progress.
Trade Talks and Economic Sentiment Drive Market
Investors are closely watching high-level discussions between U.S. and Chinese officials in London, which could ease trade tensions and bolster global economic growth—a key factor for oil demand.
“Any signs of a U.S.-China trade breakthrough would support crude prices, but lingering geopolitical risks and OPEC+ supply policies remain wildcards,” said an energy analyst at a Lagos-based trading firm.
Nigeria’s New Crude Export Milestone
In a significant development for Nigeria’s oil sector, Green Energy International Limited (GEIL) successfully exported its first crude shipment from the newly operational Otakikpo onshore terminal in Rivers State. The shipment, loaded onto a Shell-chartered vessel on June 8, marks a historic achievement as Nigeria’s first privately built and operated onshore export terminal in over 50 years.
“This milestone reflects Nigeria’s growing capacity for indigenous energy infrastructure development,” said Prof. Anthony Adegbulugbe, GEIL Chairman, who credited the achievement to regulatory support and local technical expertise.
OPEC+ Supply Strategy Raises Market Questions
Global oil prices remain above $60 per barrel despite recent volatility, as OPEC+ moves to phase out voluntary production cuts totaling 2.2 million barrels per day (bpd). Eight member nations, including Saudi Arabia and Russia, will gradually increase output by 410,000 bpd monthly through at least July.
While some analysts warn of a potential supply glut, demand resilience—particularly for gasoline and jet fuel ahead of peak travel season—has kept prices stable.
Dangote Refinery Boosts U.S. Crude Imports
Nigeria’s Dangote Refinery, Africa’s largest, has significantly increased U.S. crude imports, sourcing one-third of its feedstock from the U.S. in 2025. Traders report that 14 million barrels of WTI Midland crude are scheduled for delivery in June and July alone, with Vitol Group as the primary supplier.
A Dangote spokesperson noted that U.S. crude offers superior refining yields, particularly for high-value gasoline blends, making it a strategic choice amid declining Nigerian crude availability.
Market Outlook: Balancing Geopolitics and Fundamentals
With U.S.-China trade talks, OPEC+ supply adjustments, and summer demand trends in focus, Nigerian crude prices are expected to remain sensitive to broader market forces. Analysts suggest that any sustained price recovery will hinge on demand growth outpacing rising supply.
For Nigeria’s oil-dependent economy, maintaining premium pricing for its crude while navigating global competition and refining shifts will be critical in the months ahead.
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(Sources: Bloomberg, Reuters, Nigerian Upstream Petroleum Regulatory Commission)