Bonny Light hits $80 per barrel as US-Israel strikes Iran

2026-03-02 - 10:47

By Udeme Akpan, Energy Editor The price of Nigeria’s Bonny Light has surged to $80 per barrel, up from $70 per barrel, the highest since July 2025, following coordinated strikes on Iran by the United States and Israel, a development that has disrupted the flow of crude oil from the Middle East to the global market. Other crudes also recorded significant gains. Brent rose to $79.08 per barrel from $72.87 per barrel, and Murban Crude climbed to $81.05 per barrel from $74.24 per barrel, while West Texas Intermediate (WTI) increased to $72.24 per barrel from $62 per barrel recorded previously. Oil prices began climbing on Sunday amid reports that Iranian crude production — estimated at about 3 million barrels per day and largely exported to China and other countries — had been disrupted. Prices continued to rise as the conflict intensified, triggering concerns over a broader supply shock to the global market. According to the Organization of the Petroleum Exporting Countries (OPEC), Iran possesses vast hydrocarbon and mineral resources. Beyond petroleum, the country’s natural resources include natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc and sulphur. At the current price of $80 per barrel, Nigeria earns $15.15 above its 2026 budget benchmark of $64.85 per barrel. The 2026 budget is predicated on crude oil production of 1.84 million barrels per day and an exchange rate of ₦1,400 to the dollar. However, energy analysts warn that sustained tensions in the Middle East could push up global petroleum product prices in the coming weeks, potentially affecting domestic pump prices. Meanwhile, OPEC+ has agreed to increase oil output following a crucial virtual meeting held on Sunday. The eight countries—Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria and Oman—which had previously announced additional voluntary adjustments in April and November 2023, met virtually on March 1, 2026, to review global market conditions and outlook. In a statement, OPEC+ said, “In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, the eight participating countries decided to resume the unwinding of the 1.65 million barrels per day of additional voluntary adjustments announced in April 2023 and agreed on a production adjustment of 206,000 barrels per day. “This adjustment will be implemented in April 2026. The 1.65 million barrels per day may be returned in part or in full subject to evolving market conditions and in a gradual manner. “The countries will continue to closely monitor and assess market conditions and reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase-out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023.” The alliance noted that the measure would also provide participating countries the opportunity to accelerate compensation for overproduction since January 2024. The eight OPEC+ countries are scheduled to meet again on April 5, 2026, to review market conditions, conformity and compensation mechanisms as they continue efforts to stabilise the global oil market.