Bonny Light hits $110 per barrel as global oil prices surge

Nigeria’s premium crude grade, Bonny Light, has surged above $110 per barrel amid rising global oil prices driven by tensions in the Middle East.

Data showed that Brent crude climbed to about $112 per barrel—its highest level since mid-2022—significantly above Nigeria’s budget benchmark of $64.85.

The price rally follows escalating conflict involving the United States, Israel and Iran, alongside threats to the Strait of Hormuz, a key global oil transit route.

Market figures indicate Brent crude has risen by nearly 50 per cent this month, while light sweet crude grades such as Bonny Light and Qua Iboe are trading at a premium due to their low sulphur content.

Analysts say a sustained close above $108 could push prices towards $120 per barrel, nearing peaks last seen in 2022.

Despite the surge, Nigeria continues to fall short of its OPEC production quota of 1.5 million barrels per day, with output dropping to about 1.31 million barrels per day in February 2026.

The development highlights Nigeria’s vulnerability to global oil shocks, even as the Dangote Refinery comes on stream to boost domestic supply.

Experts warn the spike could trigger higher transportation costs and commodity prices, with a fresh round of petrol price adjustments likely across the country.

Meanwhile, supply disruptions linked to the conflict have forced several African nations—including South Africa, Ghana and Kenya—to seek fuel from the Dangote refinery as global supply chains tighten.

The United States has also moved to ease supply pressures by allowing limited sales of Iranian oil already loaded on tankers, in a bid to stabilise the market.

However, uncertainties remain as geopolitical tensions continue to threaten global energy flows, particularly through the Strait of Hormuz, which accounts for about 20 per cent of global oil shipments.