Oil prices surged over 6 per cent on Wednesday as deadlocked US-Iran negotiations deepened concerns over prolonged disruptions to Middle Eastern supply. Brent crude settled at 118.03perbarrelaftergaining118.03perbarrelaftergaining6.77 or 6.1 per cent, while West Texas Intermediate rose by 6.95or7percentto6.95or7percentto106.88 a barrel, the highest since April 7. A White House official said President Donald Trump had asked US oil companies about ways to mitigate the impact of a potentially months-long blockade of Iranian ports. Estimates show over $50 billion worth of crude oil supply has been lost since the start of the Iran war.
Key Points
- Nigerian petrol prices face further upward pressure as crude oil surges.
- Higher fuel costs will raise transportation and food prices for Nigerians.
- The US blockade of Iranian ports could extend for months, prolonging supply disruptions.
- UAE's exit from OPEC adds uncertainty to the oil market outlook.
- OPEC+ may agree on a small output quota hike on Sunday to offset losses.
Watch whether US-Iran negotiations resume and if OPEC+'s output hike on Sunday stabilises prices or further volatility follows.
Sources: Business Post
