Global oil prices rebounded on Wednesday, climbing by more than five per cent after slipping to $88 per barrel the previous day, according to market data.
The international benchmark, Brent crude, rose to $92.43 per barrel as of 10:56 a.m. WAT, representing a 5.27 per cent increase. Earlier in the week, prices had surged above $100 per barrel amid escalating tensions in the Middle East.
Meanwhile, the main U.S. benchmark, West Texas Intermediate (WTI), gained 5.9 per cent to $88.38 per barrel.
The market movement came a day after Dangote Petroleum Refinery announced a ₦100 reduction in the ex-depot price of Premium Motor Spirit (petrol).
The refinery said petrol would now sell at ₦1,075 per litre, down from ₦1,175 per litre, while supplies through coastal distribution channels would cost ₦1,050 per litre.
A spokesperson for the refinery said the price adjustment reflects changes in global crude oil prices and the company’s commitment to aligning its products with prevailing market realities.
The refinery also explained that crude supplied under the naira-for-crude arrangement is still priced based on global benchmark rates plus a premium, converted to naira using the current exchange rate.
The price cut marks the first reduction after three consecutive increases that had pushed petrol prices significantly higher in recent weeks.
Analysts say the volatility in oil prices is largely linked to the ongoing conflict involving the United States, Iran and Israel, which has disrupted global energy markets and raised concerns about supply from the oil-rich Middle East.