Oil prices tumbled to $92 per barrel on Wednesday after US President Donald Trump announced a two-week ceasefire agreement with Iran, contingent on the safe reopening of the Strait of Hormuz.
Nigeria’s benchmark, Brent crude, plunged 15.5 per cent to $92.28 per barrel, shedding nearly $17 and marking its steepest daily decline since April 2020, during the COVID-19 pandemic.
Hours later, prices recovered slightly, with Brent rising to $94.44 per barrel after losing $14.83, or 13.57 per cent. West Texas Intermediate (WTI) futures also dropped sharply, falling $17.92, or 15.87 per cent, to $95.03. At the peak of the crisis, oil prices had surged to $120 per barrel.
European natural gas prices also declined by 20 per cent at market opening in Amsterdam, reflecting easing concerns following the ceasefire announcement, which could lead to the reopening of the Strait of Hormuz.
However, uncertainty remains in the liquefied natural gas (LNG) market. No LNG cargo has passed through the Strait in over a month, after two vessels carrying Qatari LNG abandoned attempts to exit the route — a development that disrupted exports since the conflict began.
Despite the market relief, physical supply constraints in the LNG market persist.
Shipping sources disclosed that the Iranian navy had threatened to destroy vessels attempting to pass through the Strait of Hormuz without Tehran’s approval, keeping the vital route effectively shut.
Iran indicated it would halt attacks if strikes against it ceased, adding that safe transit through the Strait would be possible for two weeks under coordination with its armed forces, according to Foreign Minister Abbas Araqchi.
A senior Iranian official told Reuters that the Strait could reopen in a limited and controlled manner ahead of planned talks between US and Iranian officials in Pakistan.
Shippers and refiners continued to seek clarity on logistics and crude loadings following the ceasefire announcement.
Trump said the US had received a 10-point proposal from Iran, describing it as a workable framework for negotiations and noting that both sides were progressing towards a long-term peace agreement.
Meanwhile, Nigeria recorded significant gains in crude oil production following improved pipeline security in the Niger Delta.
The Group Chief Executive Officer of NNPC, Bayo Ojulari, said output rose from 960,000 barrels per day in 2022 to an average of 1.71 million barrels per day, reaching a peak of 1.84 million barrels per day in 2025.
Ojulari attributed the growth to an “integrated energy security model that combines legislative and executive policy alignment, actionable intelligence, kinetic deployment capabilities, regulatory oversight, industry cooperation, and community embedded surveillance mechanisms”.
He added that tackling oil theft and pipeline vandalism had restored investor confidence in Nigeria’s oil and gas sector.
At a Parliamentary Roundtable in Abuja, Senate President Godswill Akpabio, represented by Senator Jimoh Ibrahim, called for stronger collaboration among stakeholders to address production challenges.
Speaker of the House of Representatives, represented by House Leader Julius Ihonvbere, emphasised the need to assess progress to ensure fairness and equity.
The roundtable brought together top government officials, security agencies, and industry stakeholders, including the Chief of Defence Staff, Inspector General of Police, and private security firms.
Separately, Exxon Mobil projected that higher oil and gas prices linked to the conflict could boost its first-quarter upstream earnings by as much as $2.9 billion.
However, downstream earnings may take a hit of about $5.3 billion due to timing effects, with gains expected in subsequent quarters as shipments are delivered.
The company also revealed that its oil and gas production would decline by 6 per cent in the first quarter compared to the previous quarter, when it produced 5 million barrels of oil equivalent per day.
Assets in Qatar and the UAE accounted for 20 per cent of Exxon’s global oil production in 2025.
Exxon is scheduled to release its full first-quarter results on May 1, with investors closely monitoring the report for signals on broader oil sector performance.
Faridah Abdulkadiri
