Crude oil prices recovered on Monday as renewed attacks in the Middle East heightened concerns over global energy supplies, offsetting expectations that additional Russian fuel exports could ease pressure on the market.
Brent crude oil, the international benchmark for Nigerian oil, rose 69 cents or 0.7 percent to $105.41 per barrel by 10:23a.m. Nigerian time, while US West Texas Intermediate crude gained 57 cents or 0.6 percent to $92.42 per barrel.
Both benchmarks had declined earlier in the session following comments by US President Donald Trump about increased Russian diesel supplies and a proposed halt to attacks on energy infrastructure between Russia and Ukraine.
Trump said Russia would immediately supply more than 300,000 metric tonnes of diesel, while Moscow partially lifted restrictions on diesel exports.
However, uncertainty surrounding the proposed energy ceasefire limited optimism about a sustained improvement in fuel availability.
Ukrainian President Volodymyr Zelenskiy said he was awaiting details of the arrangement, while Russia had not confirmed the agreement.
Meanwhile, escalating attacks in the Middle East renewed concerns about disruptions to crude oil shipments.
Yemen’s Iran-aligned Houthis claimed responsibility for a strike on Riyadh’s international airport that killed 13 people and injured more than 300 others with further attacks reported on Sunday.
Additional incidents involving tankers near Oman and the Strait of Hormuz raised concerns about the security of a major international oil transportation route.
The developments threaten the recovery in Middle Eastern crude exports recorded in September and have kept a substantial geopolitical risk premium in oil prices.
Goldman Sachs raised its December Brent crude forecast to $90 per barrel from $85, citing heightened supply risks.
In the United States, major oil producers, including Shell, Chevron and BP, were working to restore offshore operations in the Gulf of Mexico following disruptions caused by Hurricane Isaias.
For Nigeria, sustained oil prices above $100 per barrel could support crude export earnings and foreign exchange inflows.
However, higher international energy prices also create risks for domestic fuel costs, particularly where refining, transportation and distribution expenses remain exposed to global market conditions.
Oil traders will continue monitoring developments in the Middle East, the proposed Russia-Ukraine energy ceasefire and the pace of supply recovery in the United States.
