By Clement John
Global oil prices declined sharply, with Nigeria’s Bonny Light crude falling to $89 per barrel, after Iran announced the reopening of the Strait of Hormuz for maritime operations.
The 10 per cent drop comes after weeks of price spikes that saw crude trade above $100 per barrel amid tensions linked to the Middle East conflict, which disrupted supply expectations and rattled global markets.
Iran’s Foreign Minister, Abbas Araghchi, confirmed in a post on X that the vital shipping route has been reopened, urging vessel operators to comply with coordinated transit guidelines issued by Iranian authorities.
Shipping activity resumed swiftly, with reports indicating that at least eight crude oil tankers had begun moving toward the channel shortly after the announcement.
Data monitored by Bloomberg showed that five vessels previously anchored north of Dubai initiated movement, followed by three others stationed about 70 miles of the area.
Energy analysts say the development is likely to ease supply concerns and trigger a downward adjustment in the domestic prices of Premium Motor Spirit (PMS), commonly known as petrol.
Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, noted that depot and retail prices are expected to decline, though he expressed concern about delays in reflecting global price reductions locally.
“Oil prices dropped significantly, and as shipments resume through the Strait of Hormuz, petrol prices could fall below ₦1,000 per litre in the coming days,” he said, adding that market players must ensure consumers benefit from the decline.
He explained that the reopening has calmed earlier supply fears but introduced bearish sentiment into the market, forcing traders to adjust pricing downward across Nigeria’s downstream sector.
Recent depot data showed PMS prices hovering around ₦1,200 per litre in major cities, while Automotive Gas Oil (diesel) traded between ₦1,775 and ₦1,870 per litre, depending on location and supplier.
Also speaking, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said Nigerians could begin to feel relief in the coming weeks if the situation remains stable.
“We expect the impact to filter through soon. Although marketers may cite existing high-cost inventory, the downward trend in crude prices should ultimately translate into lower pump prices,” he stated.
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