Oil prices jumped by over a dollar in early trading on Wednesday, fuelled by escalating tensions in the Middle East.
Brent futures rose by $1.36% to $74.56 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by $1.53% to $70.90.
The surge follows Iran’s significant military strike against Israel, sparking concerns of potential disruptions to crude production.
Iran’s oil production reached a six-year high of 3.7 million barrels per day in August, accounting for roughly 4% of global supply.
Oil prices have surged, with Brent futures rising by $1.36% to $74.56 per barrel and U.S. West Texas Intermediate (WTI) crude increasing by $1.53% to $70.90.
This follows a 5% gain for both benchmarks on Tuesday.
The Middle East conflict has escalated, with Iran launching ballistic missiles at Israel in response to military operations against Hezbollah.
Israel has vowed retaliation, while Iran warned against counter-attacks, triggering alarms and explosions throughout Israel and the Jordan River valley.
South Korean President Yoon Suk-yeol expressed concern over energy supply amid the Middle East crisis.
A panel of ministers from OPEC and its allies will review the market, though no policy changes are expected.
OPEC+ plans to increase output by 180,000 barrels per day starting December.
Rising oil prices will boost Nigeria’s fiscal position and foreign reserves.
However, higher crude oil prices may lead to increased petrol prices, affecting Nigerians already battling record-high prices over N1,000 per litre in major cities.
As one of Africa’s key oil producers, Nigeria’s economy heavily relies on oil, accounting for 5.6% of its GDP and 29% of government revenues.
As tensions escalate, market analysts predict continued volatility in oil prices.
Global leaders and energy markets will likely closely monitor the situation.
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