Nigerian Crude Sells for $71 per Barrel as OPEC+ Hints at Output Increase

Nigerian crude oil blends recorded a strong performance in international markets this week, with Bonny Light and Brass River trading above $71 per barrel during mid-week sessions. The price surge reflects sustained demand for Nigeria’s light, sweet crude, which remains attractive to refiners due to its low sulfur content and high yield of premium petroleum products like petrol and diesel.

OPEC+ Signals Further Output Increase

This development comes ahead of a closely watched OPEC+ meeting scheduled for the weekend, where member states are expected to discuss a possible further output hike. According to industry sources, the alliance—which includes top producers like Saudi Arabia and Russia—is considering easing supply restrictions to stabilize global markets after earlier production cuts helped prop up prices.

OPEC+ had previously restored around 2.5 million barrels per day to global supply. Another round of increases could ease concerns over supply shortages but might also put downward pressure on prices if demand growth weakens in key markets such as Asia and Europe.

Nigeria’s Position in Global Oil Markets

For Nigeria, which continues to battle production challenges due to theft, vandalism, and underinvestment in its oil sector, the current $71 price tag is a welcome boost to government revenues. Oil remains Nigeria’s primary export earner, accounting for more than 70% of foreign exchange inflows.

Higher oil prices strengthen Nigeria’s fiscal outlook, especially as the federal government intensifies efforts to fund its ambitious infrastructure and energy-transition programs. However, analysts warn that if OPEC+ raises output substantially, prices could face renewed downward pressure, testing Nigeria’s ability to maximize revenue.

Market Implications

• Revenue Relief: At $71 per barrel, Nigeria earns significantly above its benchmark oil price assumptions, providing breathing space for fiscal planning.

• Investment Confidence: Strong crude demand enhances investor appetite for Nigerian oil projects, particularly in deepwater developments.

• Global Balancing Act: OPEC+ must balance market stability with member-state interests, as too much supply could destabilize prices, while too little risks fueling inflation in consuming countries.