OIL PRICE RISES TO $79 PER BARREL, OVERSHOOTS NIGERIA'S BUDGET BENCHMARK

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On Monday, the price of crude oil went up to $79 per barrel, which is the highest it has been in over a year, beating Nigeria’s budget target.

The Brent crude, which is the main oil price marker worldwide, increased by more than 9% to reach $79 per barrel for the first time since August 2024 — although this was a slight decrease from the early trading peak of $82.

The US West Texas Intermediate also rose over 9 percent to $73.06 a barrel. The events happened as political conflicts in the Middle East got worse.

On Saturday, attacks by US and Israeli forces on Iranian sites led to the deaths of Ayatollah Ali Khamenei, Iran’s top leader, and Abdolrahim Mousavi, the head of Iran’s military.

Also killed in the attack were Khamenei’s daughter, granddaughter, daughter-in-law, and son-in-law.

In response, Iran launched waves of missiles across the region, threatening to pull its neighbours into the escalating conflict.

Maersk, Mediterranean Shipping Company (MSC), and CMA CGM have halted sailings through the Strait of Hormuz and the Suez Canal-Bab el-Mandeb corridor amid escalating security threats in the Middle East.

According to Reuters, about a fifth of the world’s seaborne oil trade and 20 percent of its liquefied natural gas (LNG) pass through the Strait of Hormuz.

The publication said a prolonged surge in oil prices could reignite global inflationary pressures and effectively act as a tax on businesses and consumers, potentially weakening demand.

Meanwhile, the current oil price has overshot Nigeria’s budget benchmark, trading above the proposed 2026 reference price of $64.85 per barrel.