Nigerian crude traded slightly higher than Brent crude amid ongoing dynamics in the global oil market.
Nigeria’s major oil blends, Brass River, Bonny Light, and Qua Iboe, last traded at $67.30 per barrel on Friday, marginally higher than the current Brent contract, as oil traders monitored ongoing peace talks between China and the United States.
Crude oil prices dipped a few cents on Monday but retained most of last week’s gains as investors awaited progress in U.S.-China trade negotiations in London.
Hopes for a potential deal have improved the global economic outlook and supported demand for oil.
Donald Trump’s top aides were scheduled to meet their Chinese counterparts in the first session of the U.S.-China economic and trade consultation mechanism, boosting investor risk appetite and propping up oil prices. Brent crude futures fell to $66.04 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 4 cents to $64.05 per barrel.
WTI posted its first weekly gain in three weeks, and Brent crude rose by 4%, driven by optimism around trade talks between the two nations.
Nigerian Firm Exports New Blend of Crude Oil
Green Energy International Limited (GEIL) has completed its first crude oil export from the newly constructed Otakikpo onshore terminal. According to the company, the shipment occurred on Sunday, June 8, at around 2:00 PM, when a Shell-chartered vessel lifted the terminal’s first consignment of crude oil.
Located in the Otakikpo marginal field in Rivers State, the Otakikpo terminal is Nigeria’s first privately built and operated onshore crude export terminal in over 50 years. GEIL Chairman, Prof. Anthony Adegbulugbe, described the achievement as historic.
He credited the milestone to business perseverance, regulatory support, and what he called “divine favor.”
“We sincerely thank all our partners and applaud the hard work and dedication of our indigenous technical team in bringing this project to fruition,” he said.
Global Oil Market Faces Demand-Supply Disruptions
Major oil benchmarks continue to hover above the $60 range after a significant selloff in early April, OPEC+’s announcement to accelerate the unwinding of voluntary production cuts totaling 2.2 million barrels per day, and renewed concerns over President Trump’s trade war rhetoric impacting hydrocarbon markets.
The initiative, aimed at gradually reclaiming market share from high-cost producers, was seen by some OPEC+ members as a strategic response to overproduction. Eight OPEC+ countries have agreed to steadily increase output through at least July, at a pace of 410,000 barrels per month.
This production strategy has raised alarms about a potential supply glut, especially as global stockpiles begin to rise. However, prices have remained stable, defying fears about the broader economic fallout of escalating trade tensions — and how they might dampen demand for fossil fuel-derived products.
Despite volatility, there’s growing demand for gasoline and distillates as the summer travel season begins. Crude oil has lost more than 10% of its value since the start of the year, amid persistent forecasts of an oversupply that have not fully materialized. Yet, traders continue to act as though a glut is imminent.
Dangote Refinery Imports One-Third of Crude from the World’s Largest Economy
In 2025, the Dangote Refinery imported one-third of its crude oil supply from the United States. The refinery is projected to import 14 million barrels of WTI Midland across June and July alone. Vessel reservation lists revealed that the Vitol Group, a global trading giant, is the largest supplier of U.S. barrels.
WTI offers advantages over Nigerian crude, particularly in yielding higher-quality reformates and enhancing gasoline (petrol) blending capabilities. The increased volume of U.S. oil imports is linked to the refinery’s rising processing capacity and a decline in the availability of Nigerian crude, according to a Dangote spokesperson.
