LAGOS, Nigeria — Nigerian crude oil grades, including Bonny Light and Qua Iboe, came under pressure after the United States and Iran reached a temporary agreement aimed at ending months of conflict. The development eased concerns over global supply disruptions and triggered a decline in oil prices across international markets.
The market reaction followed plans to reopen the Strait of Hormuz, a key shipping route that handles about 20% of global oil traffic. Traders responded to expectations that Middle Eastern oil supplies previously affected by the conflict could return to the market, reducing the premium that had supported several crude grades, including Nigerian blends.
Okay News reports that Bonny Light prices dropped into the $90 per barrel range after trading between $100 and $102 per barrel at the end of May. The decline mirrors broader weakness in global oil benchmarks, with Brent crude falling more than 4% to below $84 per barrel, while West Texas Intermediate (WTI) traded near $81 per barrel.
Despite weaker export premiums, demand for Nigerian crude remains supported by the Dangote Refinery, which continues to source domestic grades such as Bonny Light, Forcados and Qua Iboe to meet its feedstock requirements. The refinery has become a significant buyer of local crude as Nigeria expands domestic refining capacity.
According to reports, President Donald Trump approved the reopening of the Strait of Hormuz as part of the agreement, while Kazem Gharibabadi, Iran’s deputy foreign minister, confirmed that a deal had been reached. However, market analysts noted that details of the agreement remain limited and cautioned that restoring full oil production and shipping operations could take several months.
Oil traders are also monitoring production levels in Persian Gulf fields affected by the conflict. Industry participants have warned that technical challenges, infrastructure damage and geological factors may delay the return of supplies to full capacity despite the easing of tensions.
