Nigeria’s Bonny Light Crude Holds Steady After Price Slide

Nigeria’s benchmark crude, Bonny Light, has shown signs of stabilization following a three-week decline in global oil prices. The crude last traded at around $65.77 per barrel, down slightly from September highs but reflecting a narrowing trading range in recent weeks.

The broader market remains under pressure from an oversupply, driven by increased production from both OPEC and non-OPEC producers, while demand growth has slowed. Nigeria’s own production rose modestly to 1.40 million barrels per day in October, still below budget targets. Analysts expect the global surplus to continue into 2026, with supply exceeding demand by over two million barrels per day, putting downward pressure on prices.

Other factors affecting the market include shifts in major buyers’ stockpiling, particularly in China, and geopolitical developments such as sanctions on Russia, which could influence global crude flows. These dynamics have led to contango pricing, where current oil prices are lower than future contract prices. Brent crude settled near $62 per barrel, while West Texas Intermediate traded close to $59, signaling continued caution in the market.