March 05, (THEWILL) — Global crude oil prices climbed toward $84 per barrel, rising above Nigeria’s 2026 budget benchmark and raising expectations of improved government revenue from oil exports.
The rally was driven largely by heightened geopolitical tensions in the Middle East, which have raised concerns about potential disruptions to global oil supply.
The international benchmark, Brent Crude, traded above $84 per barrel, its highest level in months, while U.S. benchmark West Texas Intermediate also recorded significant gains.
The surge means oil prices have now exceeded Nigeria’s 2026 budget benchmark of about $64.85 per barrel, creating a potential fiscal windfall for the country, whose economy depends heavily on crude exports for foreign exchange earnings and government revenue.
Analysts say the price increase is largely tied to escalating tensions involving the United States, Israel and Iran, which have heightened fears of supply disruptions, particularly around the strategic Strait of Hormuz, a key shipping route for global oil trade.
Nigeria’s flagship crude grade, Bonny Light crude, has also benefited from the rally, climbing to around $84 per barrel, its highest level since mid-2025.
Energy analysts note that higher crude prices could boost Nigeria’s fiscal position if sustained, as the country relies on oil for a significant share of public revenue and export earnings.
However, they warn that the upside could be limited if crude production remains below targets.
Nigeria has struggled to meet its output quota under the Organization of the Petroleum Exporting Countries (OPEC) due to pipeline vandalism, theft and operational challenges in the oil sector.
Economists also caution that while higher oil prices may improve government revenue, they could simultaneously trigger higher domestic fuel prices, inflationary pressures and increased transport costs for households and businesses.
If geopolitical tensions persist and supply risks deepen, analysts say crude oil prices could remain elevated in the near term, with some forecasts suggesting prices could approach $90 per barrel or higher if disruptions intensify.
However, a de-escalation of tensions in the Middle East could ease supply concerns and moderate prices in the global oil market.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
