Nigeria’s Bonny Light Hits $80 Amid Middle East Hostilities

The price of Nigeria’s Bonny Light crude has surged to $80 per barrel, its highest point since July 2025, up from $70.

This spike is largely attributed to global market instability following military strikes on Iran by the U.S. and Israel, which have disrupted Middle Eastern energy flows. Other global benchmarks also saw significant increases, with Brent Crude reaching $79.08 and WTI climbing to $72.24.

Current prices place Bonny Light $15.15 above Nigeria’s 2026 budget benchmark of $64.85 per barrel.

While this could significantly boost government revenue—provided the daily production target of 1.84 million barrels is met—analysts warn that the conflict could also drive up domestic fuel prices in the coming weeks.

In response to market conditions, OPEC+ members (including Saudi Arabia and Russia) agreed during a March 1 meeting to begin a gradual output increase.

Starting in April 2026, the alliance will begin unwinding 1.65 million barrels per day of voluntary cuts, initially adding 206,000 barrels per day to the global supply to maintain market balance.