Amidst tightening global supplies due to escalating conflicts in the Middle East and tensions between Russia and Ukraine, Nigerian crude oil has been trading at a premium.
The reduced number of operational U.S. oil rigs has also contributed to the upward pressure on oil prices.
As of the latest trading, Nigeria’s Brass River and Qua Iboe crude oils were priced above $89 per barrel, while the global benchmark Brent Crude was at $85 per barrel.
Nigeria’s Bonny Light crude was not far behind, trading at $87.46 per barrel by late Friday.
Bonny Light, a high-quality crude oil named after the city of Bonny in the Niger Delta, is renowned for its low sulfur content, which ranges between 0.14% and 0.16%.
This makes it less corrosive to refinery equipment and reduces the environmental impact of its byproducts, making it a preferred choice in the market.
However, the export of Bonny Light remains hampered by force majeure due to recent disruptions in the Niger Delta, affecting the supply from export terminals.
Brass River, characterized by its light sweet quality with a sulfur level of 0.18% and a gravity of 40.1 API, continues to fetch premium prices despite a strengthening U.S. dollar.
The fuel market is experiencing additional stress as disruptions in Russian oil refineries have led to increased demand for available crude oil cargoes.
The situation has been aggravated by Indian refineries declining Russian oil shipped on PJSC Sovcomflot tankers, following U.S. sanctions.
