Nigerian crude remained largely secure however under the $70 mark as traders assessed the influence of Ukrainian drone strikes on key Russian refineries and export terminals, which might disrupt crude and gas shipments.
Nigerian oil blends, Bonny Mild and Brass River, have been final quoted under $68 per barrel.
Brent crude futures elevated to $67.3 per barrel, whereas US West Texas Intermediate crude rose to $62.8 per barrel.
Ukraine’s assault on Russian amenities boosts oil
The most important benchmarks gained greater than 1% within the earlier week following Kyiv’s heightened concentrating on of Russian oil infrastructure. Amenities resembling Russia’s largest oil export hub, the Primorsk terminal, which might load about one million barrels a day, and the Kirishinefteorgsintez refinery, one of many nation’s two largest refineries processing round 355,000 barrels every day—or 63.4% of Russia’s refining capability have been amongst these focused.
Ukrainian drone command confirmed profitable strikes on these places. A Russian oil firm in Bashkortostan introduced it might preserve its present manufacturing ranges regardless of current harm from a drone assault.
US President Donald Trump reiterated his intention to impose sanctions on Russia except Europe takes coordinated motion to scale back Moscow’s oil imports. Russia provides oil to Europe.
Trump acknowledged, “I don’t need them to purchase oil,” urging European nations to reply collectively. These remarks come amid ongoing tensions that proceed to affect world commodity markets.
Oil Theft in Nigeria Close to a Two-decade Low
Nigeria’s oil losses have fallen to a 16-year low as trade and authorities initiatives to handle metering and oil theft proceed to repay. To fight oil losses, President Bola Tinubu’s administration in Abuja has used a two-pronged technique since 2023.
The Nigerian navy closed”systemic loopholes” to enhance the accuracy of metered oil manufacturing and exports whereas collaborating with safety businesses, operators, and communities to fight bunkering and unlawful refining. The Federal authorities has additionally licensed 37 further routes for the evacuation of crude oil to forestall oil theft.
In accordance with the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), crude oil losses for the seven months ending in July averaged 9600 barrels per day, the bottom quantity since 2009, when it was 8500 barrels per day, an all-time low. Complete losses for 2024 have been 4.1 million barrels. NUPRC celebrated this “dramatic turnaround,” saying, “This marks a transparent departure from the high-loss years which have lengthy plagued the trade”.
In accordance with the NUPRC, Nigeria additionally applied stronger laws in current asset transfers and obtained greater than $400 million in decommissioning liabilities in 2024. Shell PLC was one in every of a number of multinational vitality majors that not too long ago divested from Nigeria.
Shell introduced on March 13 that the sale of its Niger Delta subsidiary, the place it had commonly reported oil theft and sabotage, was full. In an April 29, 2024, assertion, the NUPRC stated that it had delayed the $1.33 billion divestment of Shell Petroleum Improvement Firm of Nigeria to judge environmental liabilities.
NUPRC chief govt Gbenga Komolafe was quoted in a press launch issued on September 9, 2025, as stating that over $400 million in “pre-sale decommissioning and abandonment liabilities have been secured by means of Letters of Credit score and escrow accounts” all through the Nigerian upstream sector final 12 months.
Oil Merchants Look ahead to Extra Macroeconomic Information
In the meantime, oil merchants watch the continued commerce talks between the USA and China in Madrid, which started on Sunday. The US has referred to as on allies to impose tariffs on Chinese language imports due partially to Beijing’s purchases of Russian crude oil.
The negotiations search to resolve a variety of commerce disputes, together with these involving TikTok entry and tariff ranges, to decrease rising commerce tensions.
Latest US financial information indicating decrease job creation and better inflation have elevated market uncertainty and raised issues concerning the sustainability of gas demand development on the earth’s largest oil-consuming nation.
As economists predict further fee cuts later within the 12 months to assist a slowing labor market whereas balancing inflation dangers, the Federal Reserve is extensively anticipated to decrease rates of interest by 1 / 4 level throughout its September 16–17 assembly, the primary lower of 2025. Federal Reserve Chair Jerome Powell has already hinted at a attainable easing of financial coverage on the earth’s largest economic system.
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