Mideast Conflict Drives Brent to $112, Its Highest Since Mid-2022
Heightened geopolitical conflict in the Middle East has propelled global oil prices to their highest levels since mid-2022, signaling significant inflationary pressure. The global benchmark, Brent crude, rose to $112 per barrel as the crisis threatened supply through the Strait of Hormuz, a conduit for roughly 20% of the world's oil. Other key grades followed suit, with Abu Dhabi Murban crude futures climbing 3.77% to $109.33 per barrel and Nigerian grades like Bonny Light trading near $112 a barrel. The price spike places crude well above Nigeria's budget benchmark of $64.85. The situation is compounded by Nigeria's ongoing struggle to meet its OPEC production quota of 1.5 million barrels per day, with output falling to 1.31 million in February 2026.
Dangote Refinery Raises Fuel Price 6% to N1,245
The surge in global crude costs has translated directly into higher domestic fuel prices in Nigeria. The Dangote Petroleum Refinery announced its fourth price increase in March, raising the ex-depot price of Premium Motor Spirit (PMS) by nearly 6% from N1,175 to N1,245 per litre. The new pricing took effect at midnight on March 21, 2026. In a notice to marketers, the refinery attributed the revision to global market realities, including fluctuating crude prices and increased shipping costs. Despite the hike, the company noted that Nigeria’s average petrol price of $0.88 per litre remains below the global average of $1.32 per litre.
Volatility Grips Markets Amid Conflicting Diplomatic Signals
The energy price shock and geopolitical uncertainty have created significant volatility across global markets. In premarket trading, U.S. stock futures declined, with Dow, S&P 500, and Nasdaq 100 E-minis all falling between 0.7% and 0.85% as investors weighed the risk of wider economic disruption. The oil market itself has been subject to sharp swings based on diplomatic headlines. After climbing to multi-year highs, Brent crude prices briefly tumbled 5.9% to $98.30 per barrel following reports that the United States had sent a peace proposal to Iran. However, with Iranian officials denying that formal negotiations were underway, the market's cautious sentiment returned, underscoring the fragile environment as investors await a clear resolution.
Edgen Stock·Mar 26 2026, 18:44