The increase in Brent cost is a result of geopolitical disputes, particularly those related to restrictions against Russian oil trade.
As reported by Reuters last week, the administration of the American president, Joe Biden placed new sanctions on Russian oil producers, tankers, middlemen, dealers, and ports, intending to target every stage of Moscow’s oil production and distribution systems.
According to sources in the Russian oil trade and Indian refining industries, the embargo will significantly hinder Russian oil deliveries to its major customers, India and China.
The sanctions would reduce Russian oil export quantities and raise their prices, according to UBS analyst Giovanni Staunovo.
The spike has also been driven by supply issues and seasonal variations in demand in colder climates.
According to reports, the cost of Brent went from $72.88 per barrel recorded in December 2024 to $79.76 per barrel, currently.
A report by the Nigerian newspaper, The Punch, relayed that several fuel depots had already began reporting increases for diesel on Friday, marking the start of a noticeable rise in fuel costs across various regions.
N70 was added to the cost of diesel as its price went from N1,050 to N1,120 per litre on Friday.
“It implies that there is a possibility of increased fuel prices, particularly diesel prices,” Chief Executive Officer of petroleumprice.ng, Olatide Jeremiah, stated.
“As of Friday, when Brent crude neared $80, prices selectively increased in some depots in Lagos, and on Monday, prices might be jacked up by importers because a large chunk of oil marketers import petroleum products and Brent crude is a major determining factor in the refining process,” he added.
Brent Crude Oil
Brent crude oil price is the cost per barrel of Brent crude oil, a prominent worldwide benchmark. Brent crude is a type of light, sweet crude oil derived from North Sea areas. It is frequently traded since it is used to price two-thirds of the world’s international crude oil supply.
The price is governed by market variables such as global supply and demand, geopolitical events, production quotas (such as those established by OPEC+), and economic trends.
