Nigeria’s primary crude blends—Bonny Light, Brass River, and Qua Iboe—have recently traded slightly above Brent crude, reflecting subtle shifts in the global oil market. On Friday, these Nigerian blends fetched $67.30 per barrel, surpassing Brent’s contract price, amid heightened anticipation over ongoing trade negotiations between the United States and China.
As oil traders tracked the diplomatic dialogue in London, prices saw minor fluctuations on Monday. Brent crude dipped to $66.04 per barrel, while the U.S. West Texas Intermediate (WTI) crude slipped by four cents, settling at $64.05 per barrel. Despite this marginal decline, both benchmarks preserved gains from the previous week. Brent rose by 4%, while WTI notched its first weekly advance in three weeks, driven largely by optimism surrounding U.S.-China trade discussions.
Top U.S. trade officials convened with their Chinese counterparts in the latest round of economic consultations, a meeting seen by markets as a potential thaw in trade hostilities. This positive sentiment helped stabilize oil prices and reinforced investor confidence in global energy demand.
GEIL Launches First Private Crude Export Terminal in Over Five Decades
In a significant stride for Nigeria’s oil infrastructure, Green Energy International Limited (GEIL) successfully carried out its maiden crude shipment from the Otakikpo onshore export terminal. The export operation took place on Sunday, June 8, when a Shell-chartered tanker lifted the first consignment from the new facility.
Located in Rivers State, the Otakikpo marginal field hosts what is now Nigeria’s first privately constructed and operated onshore crude export terminal in more than 50 years. GEIL’s chairman, Professor Anthony Adegbulugbe, hailed the event as a milestone achievement for indigenous innovation and resilience.
“We thank all our partners and applaud the unwavering dedication of our Nigerian technical team,” he stated, attributing the success to persistent effort, supportive regulation, and what he termed “divine favor.”
This development could signal a shift towards increased private sector participation in Nigeria’s upstream oil logistics, potentially reducing dependence on existing infrastructure bottlenecks while boosting overall export capacity.
Global Oil Market Remains in Flux Amid Supply Strategy and Demand Projections
Oil prices have remained largely stable in the $60–$70 range despite persistent volatility in the global market. Earlier in the year, crude experienced a sharp selloff following geopolitical tension and the announcement by OPEC+ to unwind a portion of its voluntary production cuts.
The oil-producing alliance, made up of OPEC and allied nations, disclosed its intention to gradually phase out 2.2 million barrels per day in production cuts. This phased increase, slated to continue through July at a monthly pace of 410,000 barrels, is aimed at clawing back market share, particularly from costlier producers such as U.S. shale firms.
However, the move has sparked concerns about a looming supply glut. As global oil inventories begin to rise, market analysts warn that excessive output, coupled with slowing global trade, could disrupt price stability. Nonetheless, crude prices have thus far defied bearish expectations, buoyed by consistent demand for gasoline and diesel as summer travel surges.
Since the beginning of 2025, crude prices have fallen over 10%, largely due to speculation about future oversupply. Yet, the glut has not materialized in full force, and traders continue to act on caution rather than confirmation.
Dangote Refinery Leans Heavily on U.S. Crude Amid Supply Constraints
In a notable development, Nigeria’s largest refining complex—the Dangote Refinery—has turned to the United States for a substantial portion of its crude oil needs. In 2025 alone, one-third of the refinery’s input is sourced from American producers, marking a significant shift in the plant’s supply strategy.
The refinery is expected to import approximately 14 million barrels of WTI Midland crude during June and July. According to vessel reservation data, Vitol Group, a leading global energy trader, remains the primary supplier of these U.S. shipments.
This pivot to American crude is driven by both performance advantages and domestic constraints. WTI’s higher quality reformates enhance petrol blending, making it more suitable for refining processes compared to local Nigerian grades. Additionally, a Dangote spokesperson cited limited availability of Nigerian crude as a key reason for sourcing externally, underscoring broader challenges in domestic production and allocation.
The move also reflects the Dangote Refinery’s ramped-up operations, with increasing capacity requiring a more diverse and reliable crude portfolio. Although Nigeria remains a major oil producer, export commitments, pipeline vulnerabilities, and community disruptions often hinder consistent internal supply.
Conclusion: Nigeria’s Oil Sector at a Strategic Crossroads
The convergence of Nigerian crude fetching a premium over Brent, the debut of private export infrastructure, and the realignment of refinery imports speaks volumes about the evolving oil landscape in Nigeria and beyond.
While trade talks between economic giants continue to steer investor sentiment, domestic innovations such as GEIL’s Otakikpo terminal signal an emerging trend of homegrown initiatives reducing infrastructural bottlenecks. At the same time, the reliance of the Dangote Refinery on U.S. crude points to a complex mix of quality preference and local supply challenges that must be addressed for Nigeria to maximize its oil value chain.
In an increasingly interconnected market, Nigeria’s ability to adapt to both global forces and internal constraints will determine how effectively it can leverage its vast crude resources—both in securing trade revenues and in sustaining domestic energy transformation.
