By: Sunday Ameh
Global crude oil prices surged to $100 per barrel on Thursday following attacks on oil tankers in the Gulf, raising fresh concerns over the escalating conflict in the Middle East.
Data showed that Brent crude, the global oil benchmark, rose by 8.05 percent to $100 per barrel, while West Texas Intermediate (WTI) increased by 8.08 percent to $94.30 per barrel.
According to Reuters, the sharp rise in prices was triggered by attacks on oil tankers in the Gulf, which dashed hopes for a near-term de-escalation of tensions in the Middle East.
Reports indicated that two fuel tankers in Iraqi waters were struck by explosive-laden boats believed to be linked to Iran. An Iraqi official also disclosed that oil ports in the country had completely halted operations following the incident.
In response to the escalating security threat, Oman reportedly evacuated all vessels from its key oil export terminal at Mina Al Fahal as a precautionary measure.
Earlier on March 11, Iran had warned that it would not allow “a single litre of oil” to pass through the strategic Strait of Hormuz for the benefit of the United States, Israel, and their allies.
The development comes days after crude prices had dropped to about $87 per barrel, prompting the Dangote Refinery to reduce its ex-gantry petrol price to N1,075 per litre earlier this week.
Similarly, the Nigerian National Petroleum Company Limited (NNPC Ltd) also reduced petrol pump prices at its retail outlets to N1,130 per litre in Lagos and N1,165 per litre in Abuja.
However, analysts say petrol prices may rise again following the latest surge in global crude oil prices.
Earlier, Nigeria’s Federal Ministry of Finance warned that the ongoing Middle East conflict could affect Nigeria’s crude oil and gas prices, capital flows in financial markets, as well as global logistics and supply costs.
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