Oil prices increased on Tuesday as the ongoing Iran-Israel conflict showed no signs of resolution.
Brent crude rose by 5.29 per cent to $77.04 a barrel at 22.15 WAT, while US West Texas Intermediate crude increased by 5.28 per cent to $74.84 a barrel.
According to Reuters, although oil flows remained uninterrupted, Iran partially suspended gas production at the South Pars field, which it shares with Qatar, following a fire triggered by an Israeli strike on Saturday.
Israel also hit the Shahran oil depot in Iran.
On 13 June, global oil prices jumped over 7 per cent for the first time in over four months on Friday.
With oil prices rising further, the global commodity’s value has surpassed Nigeria’s 2025 budget benchmark of $75 per barrel, indicating a possible increase in Nigeria’s revenue from the oil industry.
The Nigerian Upstream Petroleum Regulatory Authority (NUPRC), on 13 June, said the country’s oil production decreased to 1,452,941 barrels of oil per day (bpd) in May.
The commission also noted that the average crude oil production for May represents 97 per cent of the 1.5 million bpd quota set for Nigeria by the Organisation of the Petroleum Exporting Countries (OPEC).
On 16 June, OPEC said that despite a decline in production, Nigeria retained its position as Africa’s largest crude oil producer in May.
The oil cartel also said it will maintain the global oil demand growth forecast at 1.3 million barrels per day (bpd) for 2025.
