Oil rebounds above $92 as Middle East war rattles markets,Dangote cuts petrol price

Global oil prices rebounded sharply on Wednesday, rising by about 5% a day after slipping to around $88 per barrel, as tensions in the Middle East continued to roil energy markets.

Brent crude climbed to $92.43 per barrel as of 10:56am WAT, a 5.27% increase, according to market data. The benchmark had surged past $100 per barrel on Monday at the height of escalating hostilities in the region.

The main US benchmark, West Texas Intermediate, also jumped, gaining 5.9% to $88.38 per barrel.

The renewed rally came a day after the Dangote Petroleum Refinery announced a reduction in the ex-depot price of petrol, citing recent movements in global crude markets.

The refinery cut the gantry price of Premium Motor Spirit (PMS) to ₦1,075 per litre from ₦1,175, representing a ₦100 reduction. Petrol supplied through coastal distribution channels will now sell at ₦1,050 per litre.

The Dangote Group’s chief communications officer, Anthony Chiejina, confirmed the adjustment in a telephone interview on Tuesday.

In a statement, the refinery said the price cut reflected the earlier decline in global crude prices.

“As responsible corporate citizens operating in a high-governance code and ethical environment, we believe it is imperative to reduce the price of our products as a reflection of the decline in global crude oil prices,” the company said.

It added that crude purchased by the refinery is priced using international benchmarks with an additional $3 to $6 premium, while foreign exchange is sourced at prevailing market rates without subsidy.

“For the avoidance of doubt, the crude supplied under the naira-for-crude arrangement is priced according to the global benchmark price plus a premium which is then converted to naira using the prevailing market exchange rate,” the refinery said.

The adjustment marks the first price reduction after three consecutive increases that had pushed petrol prices higher in recent weeks.

Earlier this month, the refinery’s chief executive officer, David Bird, said the facility was not insulated from global oil shocks because it procures crude at international market prices.

Crude oil prices had dipped to about $90 per barrel on Tuesday, the first notable decline since the outbreak of the latest Middle East conflict involving the United States, Iran and Israel.

The war has rattled global energy markets and driven up petrol prices in Nigeria, which relies heavily on imported refined petroleum products despite being Africa’s largest crude producer.

As the conflict entered its second week with no immediate resolution in sight, US President Donald Trump said the military campaign was progressing faster than initially expected.

“I think the war is very complete, pretty much. They have no navy, no communications, and they’ve got no air force,” Trump told CBS News in a telephone interview.

“If you look, they have nothing left. There’s nothing left in a military sense,” he added.

Trump said the United States was already “very far” ahead of his initial four- to five-week timeline, later telling reporters in Florida that the conflict could end soon.

“I think soon. Very soon,” he said when asked whether the war might end within days or weeks.

Meanwhile, Nigeria’s government is seeking to cushion the domestic impact of rising fuel costs.

President Bola Tinubu on Tuesday ordered the immediate deployment of 100,000 compressed natural gas (CNG) conversion kits nationwide to reduce reliance on petrol for transportation.

The executive chairman of the Presidential Initiative on Compressed Natural Gas (Pi-CNG), Ismaeel Ahmed, disclosed this after a meeting with the president at the State House in Abuja.

Ahmed said the president was closely monitoring global developments and their impact on Nigeria’s energy prices, particularly the effect of the Middle East conflict on transportation costs.

He said the kits would allow vehicle owners, including tricycle operators, to convert petrol-powered engines to CNG.

The rollout of the conversion kits is expected to begin within two to three weeks, he added.