The price of Brent crude oil climbed to $107 per barrel on Thursday, heightening fears of another increase in petrol prices in Nigeria as the conflict involving the United States and Iran continues to disrupt global oil supplies.
The latest surge, which represents an increase of more than five per cent from the previous day’s level of about $100, has added to pressure on the domestic downstream market.
Petrol prices, which were around N830 per litre before the Middle East crisis erupted on February 28, have already risen to N1,310 or more in some parts of the country.
Brent crude was trading below $69 per barrel before the conflict escalated, but supply disruptions and growing concerns over the security of oil shipments through the Strait of Hormuz have since sent prices sharply higher.
The Strait of Hormuz is one of the world's most important oil transit routes, and reduced tanker movements through the waterway have heightened fears of a prolonged squeeze on global supplies.
Oilprice.com reported that oil flows through the strait had fallen from between six million and nine million barrels per day in previous weeks to below two million barrels per day.
West Texas Intermediate also crossed the $100-per-barrel threshold on Thursday as traders responded to mounting supply concerns.
Shipping trackers further indicated that no very large crude carriers had exited the Strait of Hormuz since early September, signalling a significant reduction in crude shipments through the route.
The disruption has been compounded by attacks on tankers and commercial vessels in the Persian Gulf and surrounding waters.
Iran has claimed that it struck several vessels, while the United States confirmed the destruction of some Iranian oil tankers.
Neither Washington nor Tehran has indicated that a ceasefire is imminent, raising concerns that the confrontation could continue for an extended period.
Market analysts said the uncertain outlook had forced traders to price in a higher risk of prolonged supply disruption.
The physical crude market had already moved above $100 in recent sessions, while futures prices followed as concerns over inventories and alternative export routes intensified.
For Nigeria, the sustained increase in global crude prices could have a direct impact on petrol pricing, particularly if refiners and importers face higher crude acquisition and logistics costs.
The latest rally therefore raises the prospect of further petrol price adjustments if the international oil market remains above the $100-per-barrel level and disruptions to crude shipments persist.
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