Nigeria’s oil price has jumped to $72 per barrel following fresh Middle East crisis. This is happening amidst fresh attacks by Houthi on shipping in the Red Sea. No fewer than four crew members died in the Houthi rebels oil attacks, while at least two were wounded.
Reuters reported on Tuesday, July 8th that “four crew members aboard the Greek-operated, Liberian-flagged bulk carrier Eternity C were killed by drones and speedboats off Yemen’s coast.”
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Oil market reaction to Houthi attacks was a two-week high price on Tuesday. There were forecasts for less U.S. oil production. The Red Sea oil route crisis has consistently affected OPEC and Nigeria’s oil price, causing crude oil market disruption. Ironically, oil price rise due to conflict is how Nigeria benefits from oil price surge.
The Houthi attack crude oil disruption affected Brent crude futures, rising to 57 cents, or 0.8%, to settle at $70.15 per barrel. The U.S. West Texas Intermediate (WTI) crude closed at $68.33, up 40 cents, or 0.6%. “Those were the highest closes for both crude benchmarks since June 23 for a second day in a row.” Reuters informed.
Phil Flynn, an analyst at Price Futures Group gave an insight into the Middle East conflict oil prices. Flynn stated:
“The lower (U.S.) production outlook got the price rally going and it kept going along with other commodities on the copper tariff news and the increased tensions in the Red Sea.”
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The attack indicates that Houthi impact on oil prices affect the oil supply chain disruption in the international market. The Houthi attack impact on oil supply is one of the reasons behind oil price hike. The Middle East oil conflict reveals how geopolitical tensions impact oil markets.
Nairametrics reported that, “Nigerian oil blends, which included Bonny Light, Brass River, and Qua Iboe, settled at $72.3 a barrel on Tuesday, $2.7 below the Federal Government’s benchmark for Crude.”
The current Nigeria’s oil price could change based on: how Houthi attacks affect crude supply, global crude oil shortage, Nigeria oil exports, latest global oil supply news, and oil market volatility 2025.
“Attacks in the Red Sea have forced vessels carrying oil, liquefied natural gas and other energy products to travel long distances to avoid the region, boosting energy costs. Some analysts also noted the oil market was supported by technical short-covering after Brent prices traded over $70 a barrel, a key level of both psychological and technical resistance. Energy traders noted rising prices for U.S. gasoline and diesel in recent weeks have boosted the diesel crack spread to its highest since March 2024 and the 3:2:1- crack spread to a six-week high. Crack spreads measure refining profit margins.” Reuters report.
In a related development, the Honourable Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, and the Honourable Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo have highlighted that “Nigeria’s oil and gas sector is experiencing a resurgence in global investor confidence, fueled by bold reforms, strategic policies, and innovative infrastructure development.”
They made this call during the official opening of the 24th Nigeria Oil and Gas (NOG) Energy Week, held in Abuja on Tuesday, 1st.
