Global oil prices jumped by more than 4% on Monday, with Brent crude climbing above $79 per barrel, following renewed tensions between the United States and Iran, raising fears of possible disruptions to global oil supplies.
The latest price rally came after fresh military exchanges between both countries and Iran’s announcement that it was closing the Strait of Hormuz, a vital shipping route through which nearly 20% of the world’s crude oil is transported.
Although US President Donald Trump insisted that the waterway would remain open, he also announced plans to restore a blockade on Iranian ports, a move that further heightened concerns in the global energy market.
The renewed geopolitical uncertainty quickly pushed oil prices higher after weeks of decline driven by increased OPEC+ production and worries over slowing global demand.
Just last week, Brent crude traded at around $72 per barrel before surging to about $79 on Monday.
The development could prove beneficial for Nigeria, which has recently recorded higher crude oil production.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country’s average daily crude oil and condensate production rose to 1.74 million barrels per day in June, up from 1.70 million barrels per day recorded in May.
Nigeria’s average crude oil production, excluding condensates, also increased to 1.56 million barrels per day, allowing the country to exceed its 1.5 million barrels per day OPEC production quota for the second consecutive month.
The NUPRC said the improved performance was driven by stable production operations, fewer pipeline disruptions and better crude evacuation, adding that Nigeria’s production peaked at 1.89 million barrels per day during the month.
Analysts say if global oil prices remain elevated while Nigeria sustains its production growth, the country could enjoy improved export earnings and stronger government revenues in the coming months.
Source: NUPRC.
