BONNY LIGHT CRUDE PRICE SOARS TO $67 PER BARREL AMID ISRAELI STRIKE ON QATAR
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BY OWOLABI OLUWADARA
The price of Nigeria’s Bonny Light crude went up to \$67 per barrel from \$65 after Israel’s surprise attack on Qatar over Hamas.
News of the strike on Hamas sites in Qatar, a key oil and gas producer and former OPEC member, caused heavy speculation and pushed global oil prices higher.
Similarly, Brent crude, a standard for assessing other crude prices, was transacted at $66.58 per barrel, reflecting an increase of over $1.00 from the pre-incident high of $65.
Notwithstanding this price surge, oil costs remained beneath the $75 per barrel standard outlined in Nigeria’s 2025 fiscal plan, which is predicated on a production level of 2.06 million barrels daily and an exchange rate of N1,500/$.
Anticipations were elevated that the global market would persist in reacting to the incident and other international economic occurrences. Recently, OPEC+ declared a relaxation of its production limitations, raising optimism for increased supply and the possibility of prices dipping below $60 per barrel.
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According to OPEC+, the retraction of production cuts would introduce 137,000 barrels per day back into the market in October 2025.
Mazi Colman Obasi, National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), remarked, “Easing oil cuts at this moment signifies a boost in supply, which is anticipated to lead to an increase in market offerings, thus resulting in prices dropping below $60 per barrel. ”
Another analyst indicated that the relaxation of oil cuts would enhance supply and lower prices, potentially affecting the execution of Nigeria’s 2025 budget, which is based on 2.06 million barrels per day, a price of $75 per barrel, and an exchange rate of N500/$.
OPEC+ conveyed that the production adjustment of 137,000 barrels per day would be enacted in October 2025, with the provision to pause or reverse the decision based on the shifting market dynamics.
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