Crude Oil hits $79 per barrel, exceeding Nigeria’s 2026 budget
Crude oil prices surged on Monday, reaching $79 per barrel the highest level in over a year and well above Nigeria’s 2026 budget benchmark.
Brent crude, the international benchmark, climbed more than 9 percent to $79 per barrel, after briefly touching $82 in early trading.
Meanwhile, the US West Texas Intermediate (WTI) rose over 9 percent to $73.06 per barrel.
Analysts attribute the sharp gains to escalating tensions in the Middle East. On Saturday, US and Israeli strikes targeted Iranian sites, killing Ayatollah Ali Khamenei, Iran’s supreme leader, and Abdolrahim Mousavi, the armed forces chief of staff.
Several family members of Khamenei, including his daughter, grandchild, daughter-in-law, and son-in-law, were also reportedly killed.
In retaliation, Iran launched multiple missile attacks across the region, raising fears of a wider conflict. Shipping companies, including Maersk, Mediterranean Shipping Company (MSC), and CMA CGM, have suspended sailings through key routes such as the Strait of Hormuz and the Suez Canal-Bab el-Mandeb corridor due to security concerns.
The Strait of Hormuz alone handles roughly one-fifth of the world’s seaborne oil trade and 20 percent of global liquefied natural gas (LNG) shipments, making the disruption significant for global energy markets.
Experts warn that prolonged oil price spikes could fuel global inflation, acting like an additional cost burden for businesses and consumers and potentially slowing demand.
For Nigeria, the current price of $79 per barrel is far above the country’s proposed 2026 reference price of $64.85 per barrel, offering potential fiscal gains but also exposing the economy to market volatility.
