Nigeria’s key crude oil blends, including Bonny Light, Brass River, and Qua Iboe, traded at $67.30 per barrel last Friday, slightly surpassing Brent crude, amid shifting dynamics in the global oil market. This marginal premium reflects Nigeria’s continued relevance in the energy sector, even as global oil prices face volatility driven by U.S.-China trade negotiations and OPEC+ production strategies.
On Monday, crude oil prices experienced a slight dip but held onto most of the previous week’s gains, buoyed by optimism surrounding trade talks between the United States and China. Brent crude futures settled at $66.04 per barrel, while U.S. West Texas Intermediate (WTI) crude fell to $64.05 per barrel. The Brent contract saw a 4% weekly increase, and WTI marked its first weekly gain in three weeks, fueled by hopes of a potential U.S.-China trade deal that could bolster global economic growth and oil demand.
**A Milestone for Nigeria’s Oil Industry**
In a significant development, Green Energy International Limited (GEIL) announced the successful export of its first crude oil consignment from the newly established Otakikpo onshore terminal in Rivers State. The shipment, completed on June 8, 2025, at 2:00 PM via a Shell-chartered vessel, marks a historic milestone as Nigeria’s first privately built and operated onshore crude export terminal in over five decades.
GEIL Chairman, Prof. Anthony Adegbulugbe, hailed the achievement as a testament to perseverance, regulatory support, and the dedication of the company’s indigenous technical team. “This is a landmark moment for Nigeria’s oil industry,” he said, emphasizing the role of strategic partnerships in bringing the Otakikpo project to fruition. The terminal is expected to enhance Nigeria’s crude export capacity, diversifying its oil market presence.
**Global Oil Market Faces Complex Dynamics**
The global oil market remains turbulent, with prices stabilizing above $60 per barrel despite a significant selloff earlier this year. OPEC+’s decision to phase out voluntary production cuts of 2.2 million barrels per day, starting with an increase of 410,000 barrels per month through July, has sparked concerns about a potential supply glut. This strategy aims to reclaim market share from higher-cost producers but has raised fears of oversupply as global stockpiles grow.
Despite these concerns, oil prices have remained resilient, supported by rising demand for gasoline and distillates as the summer travel season begins. However, crude oil has lost over 10% of its value since January 2025, driven by persistent forecasts of oversupply that have yet to fully materialize. Traders remain cautious, anticipating disruptions from escalating trade tensions, particularly following renewed rhetoric from U.S. President Donald Trump that could dampen demand for fossil fuels.
**Dangote Refinery’s Strategic Shift**
Adding to Nigeria’s evolving oil landscape, the Dangote Refinery has increasingly turned to U.S. crude imports to meet its growing processing needs. In 2025, approximately one-third of the refinery’s crude supply has come from the United States, with 14 million barrels of WTI Midland expected to arrive in June and July alone. The Vitol Group, a leading global trading firm, has emerged as the primary supplier of these U.S. barrels.
According to a Dangote spokesperson, WTI Midland offers superior yields for reformates and enhances gasoline blending capabilities compared to Nigerian crude. The refinery’s reliance on U.S. imports is partly due to a decline in domestic crude availability, underscoring the challenges Nigeria faces in maintaining its crude supply chain amid rising domestic refining capacity.
**Implications for Nigeria’s Economy**
The slight premium of Nigerian crude over Brent highlights the competitive edge of blends like Bonny Light in the global market. However, the broader oil market’s volatility poses risks to Nigeria’s revenue and naira stability, as noted in recent analyses. The introduction of the Otakikpo terminal and the Dangote Refinery’s import strategy reflect Nigeria’s efforts to adapt to global trends while addressing domestic constraints.
As Nigeria navigates these complex dynamics, the success of initiatives like the Otakikpo terminal could bolster its position in the global oil market. Continued investment in infrastructure and strategic partnerships will be crucial for sustaining growth and mitigating the impact of global supply-demand fluctuations.
