Brent and WTI fall as OPEC supply plans offer temporary relief amid fears of further escalation…..
Global crude oil prices declined on Friday after surging above $100 per barrel a day earlier, as investors weighed rising tensions in the Middle East against efforts by major producers to increase supply.
Market checks showed that Brent crude dropped by about three per cent to $96 per barrel on Friday, while United States benchmark West Texas Intermediate (WTI) declined by 2.58 per cent to $89.81 per barrel.
The decline followed a sharp rally on Thursday, when Brent rose to $100.67 per barrel and WTI climbed to $92.19 per barrel amid concerns over possible disruptions to global energy supplies.
The recent price volatility was triggered by heightened geopolitical tensions, including attacks by Houthi militants on Saudi-linked oil tankers, which raised fresh concerns over the safety of key crude oil transportation routes.
However, pressure on the market eased slightly after the Organisation of Petroleum Exporting Countries (OPEC) and its allies indicated plans to increase production.
Reuters reported that Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman are expected to raise their combined September output target by 188,000 barrels per day.
Despite the planned increase in supply, uncertainty remains in the market as further escalation in Middle East conflicts could push prices higher.
The President of the United States has also threatened a “massive attack” on Iran, a development analysts say could create additional pressure on global crude markets if it leads to disruptions in production or exports.
The ongoing Iran-US-Israel conflict, which began on February 28, has continued to influence energy markets, contributing to fluctuations in international oil prices and domestic fuel costs.
In Nigeria, the impact has already been reflected in recent petrol price adjustments by major industry players, including the Dangote Refinery, petroleum marketers and depot operators.
The Dangote Refinery’s petrol gantry price currently stands at N1,215 per litre, while consumers in Abuja and surrounding areas are paying between N1,300 and N1,340 per litre for the product.
Energy analysts say further developments in the Middle East, OPEC’s production decisions and global supply conditions will remain key factors shaping crude oil prices in the coming weeks.
