The Nigerian National Petroleum Company Limited (NNPCL) has raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes amid rising global oil prices linked to tensions in the Middle East.
According to a report by Oilprice.com, the national oil company increased the price of Nigeria’s flagship crude grade, Bonny Light, by $6.13 per barrel for May, compared to April.
The report also stated that Forcados crude rose by $7.01 per barrel within the same period.
Bonny Light, Forcados record gains
Oilprice.com reported, “Nigeria reaps the benefit of the Iran war. Nigeria’s national oil company NNPC has raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes, hiking its flagship grade Bonny Light by a whopping $6.13 per barrel compared to April, while Forcados is up by $7.01 per barrel.”
The development comes as Brent crude reportedly surged above $110 per barrel over concerns that the United States-Iran conflict could become prolonged.
The report also linked market uncertainty to the United Arab Emirates’ reported exit from the Organisation of Petroleum Exporting Countries, which has raised questions over possible realignments in the Middle East energy market.
According to the Central Bank of Nigeria, Bonny Light rose by nearly $2 on Monday amid speculation over whether Iran and the United States could agree to reopen the Strait of Hormuz and allow the free movement of oil vessels.
Data from the apex bank showed that Bonny Light traded around $74 before the Middle East crisis escalated on February 28.
The latest increase in Nigeria’s crude oil selling prices is expected to improve oil revenue if production and exports remain stable.