Nigeria oil sold at a premium on concerns over tighter global supply brought about by escalating conflicts in the Middle East and between Russia and Ukraine, a shrinking U.S. rig count added to upward price pressure.
Nigeria Brass River and Qua Iboe traded above $89 a barrel while Brent Crude traded at $85 per barrel. Nigeria Bonny Light also traded at $87.46 a barrel as of late Friday
Bonny Light Crude Oil is a premium grade of crude oil, named after the city of Bonny, produced in the Niger Delta region of Nigeria. Due to its low sulfur content compared to other raw materials, low corrosive effects on refinery equipment, and low environmental impact of its byproducts, bonny light is highly sought after. Its percentage of sulfur varies from 0.14% to 0.16%.
The primary crude export grade of Nigeria, Bonny Light, is still subject to force majeure because of a recent wave of disturbances in the Niger Delta that have affected export terminal supply. Brass River is a light sweet crude with a sulfur level of 0.18% and a gravity of 40.1 API. Even with the U.S. dollar strengthening by roughly 1% over the past week, Nigerian crude continued to sell for a premium.
Moscow unleashed 57 missiles and drones in the attack, which also targeted the country’s capital, according to Kyiv, two days after the worst aerial assault on Ukraine’s energy system in more than two years of full-scale war.
The action came after recent drone strikes on Russian oil infrastructure by Ukraine, which have targeted at least seven refineries this month alone.
Fuel markets are under further strain because Russia’s oil refinery disruptions have increased demand for available crude oil cargoes.
Recent fundamentals show the tightening of the global market was further exacerbated by Indian refineries’ refusal to accept Russian oil transported on PJSC Sovcomflot tankers because of US sanctions.
According to the Palestinian Red Crescent, Israeli forces in the Middle East encircled two more Gaza hospitals on Sunday, trapping medical personnel beneath a barrage of gunfire. In ongoing fighting inside Gaza’s flagship Al Shifa hospital, Israel claimed to have taken 480 militants into custody.
Israeli Prime Minister Benjamin Netanyahu was warned on Friday by U.S. Secretary of State Antony Blinken that if Israel attacked the Palestinian city of Rafah in the Gaza Strip, it could face international isolation.
A Chinese-owned oil tanker was targeted by four anti-ship ballistic missiles fired by the Houthi group, which prompted U.S. forces to engage six UAVs in combat over the southern Red Sea, according to a statement from U.S. Central Command on Saturday.
