The global energy industry continues to witness a shift as crude oil surged past the $100 per barrel mark for the first time since 2022.
West Texas Intermediate (WTI) jumped over 20% to $109.17, while the international benchmark Brent Crude surged to $116.18 in early Monday trading.
Additionally, U.S crude oil futures rose more than 25%, at one point reaching nearly $115 per barrel.
In addition to oil’s rise, S&P 500 futures plunged 2.3%, Dow futures plummeted more than 1,000 points, and Nasdaq 100 futures slid 2.7%, indicating U.S. stocks were poised to continue last week’s descent.
The global crude oil prices which were triggered by escalating geopolitical tensions in the Middle East and supply chain disruptions in the Strait of Hormuz, are expected to trigger a fresh wave of rising energy costs in Nigeria.
With the international benchmark trading as high as $118 per barrel in early Monday trading, the ripple effects are already reaching Nigerian filling stations, where petrol prices have begun a steady climb toward N1,100 per litre.
Following the development, the Dangote Petroleum Refinery has announced its decision to raise the gantry price of petrol to N1,175 per litre, marking the third upward adjustment within a week.
The refinery announced the price hike to marketers on Monday, raising the gantry price of Premium Motor Spirit to N1,175 per litre from N995 per litre announced on Friday, representing an increase of N180 or about 18.1 per cent within three days.
Pan-Atlantic Kompass reports that global crude oil soared past $100 after a series of military escalations between the United States, Israel, and Iran.
Also, the war continues to hit oil infrastructure and push refiners to cut production. Kuwait’s state oil company said it was trimming output, while the United Arab Emirates’ state-run oil company said it was “managing” some output, hinting at possible production cuts.
While Nigeria, as Africa’s largest oil producer, stands to see a significant boost in its foreign exchange reserves, the domestic reality for citizens remains grim.
Because the country still relies heavily on imported refined petroleum products, any increase in the global price of crude translates directly into higher landing costs for fuel.
Since the removal of the fuel subsidy in 2023, the government no longer provides a financial buffer to absorb international price shocks.
Market experts warn that as logistics and transportation companies adjust their rates to match the new fuel prices, the cost of food, public transit, and electricity (for those using generators) will inevitably spike, placing further strain on household budgets already stretched thin by inflation.
Meanwhile, U.S President Donald Trump has rebuffed concerns about the rising price of oil and gas since the war began.
Trump said Sunday on Truth Social that spiking prices were “a very small price to pay for U.S.A., and World, Safety and Peace.”
The U.S President reiterated his “Maximum Pressure” stance, arguing that the economic turbulence is a temporary byproduct of a necessary strategic victory.
”Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, are a very small price to pay for the U.S.A., and world safety and Peace,” President Trump posted.
“ONLY FOOLS WOULD THINK DIFFERENTLY!”
Also, on Friday, Treasury Secretary Scott Bessent said the administration was working with U.S Central Command to try to get ships moving through the Strait of Hormuz soon.
The strait, a key artery for oil and liquefied natural gas to get to the global market, has been essentially shut since the U.S. and Israel first struck Iran on Feb. 28.
Still, Bessent said, it might take another “week or two weeks” to get ships moving through the waterway again as normal, “but we are on track to get this solved.”
