Crude Oil Price is Down 8%, Now Trading at $83 After Soaring Amid Middle East Crisis

Global oil prices are beginning to cool after days of sharp volatility triggered by geopolitical tensions in the Middle East.

At the height of the panic, crude oil surged above $100 per barrel as markets reacted to the conflict involving the United States, Israel, and Iran. The uncertainty pushed prices up dramatically, with oil climbing more than 30 percent at one point and briefly touching around $119 per barrel before settling near $110.

But the momentum didn’t last long.

By Tuesday, crude prices had dropped significantly, falling below $90 per barrel and settling around $83. The sudden decline followed comments from Donald Trump, who suggested that the military operation involving Iran could be nearing its end and progressing faster than expected.

READ ALSO: Dangote Refinery Increases Petrol Price to ₦1,175

Trump also indicated that steps could be taken to stabilise global oil markets. According to him, the United States may consider waiving certain oil sanctions and deploying the U.S. Navy to escort oil tankers through the strategic Strait of Hormuz, one of the world’s most critical oil shipping routes.

Another factor helping calm markets was a signal from the Group of Seven (G7). Finance ministers from the bloc said they are ready to release strategic oil reserves if necessary to stabilise global energy prices, although no concrete action has been taken yet.

The earlier surge in oil prices had been fueled by fears of supply disruptions in the Middle East. With tanker movements restricted in parts of the Strait of Hormuz, several major oil-producing countries, including Saudi Arabia, United Arab Emirates, Kuwait, and Iraq, began cutting production as storage facilities filled quickly.

The ripple effects were quickly felt in Nigeria.

As global crude prices surged earlier in the week, petrol prices jumped sharply across the country. Many filling stations began selling Premium Motor Spirit (PMS) for as high as ₦1,300 per litre.

At the same time, the Dangote Petroleum Refinery increased its ex-depot petrol price from ₦995 to ₦1,175 per litre. The adjustment followed earlier hikes within the same week, first from ₦774 to ₦874 per litre, and then from ₦874 to ₦995.

The refinery had previously attributed the increases to rising global crude oil prices and the uncertainty created by the Middle East conflict.

Now, with crude prices dropping to around $83 per barrel, a new question is emerging in Nigeria’s energy market: will petrol prices follow the same downward trend?

For many consumers already grappling with high fuel costs, the hope is that relief at the global level will eventually translate into lower pump prices at home. Whether that happens, and how quickly, remains to be seen.