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Crude Oil Prices May 14, 2025: Brent & WTI Rates

Published

3 weeks ago

on

Get the latest oil price data for May 14, 2025 including Brent & WTI crude prices, and factors influencing the oil prices

Crude oil prices held steady on May 14, 2025 after the US and China agreed to slash tariffs, easing trade tensions between the world’s two largest petroleum consumers.

Brent crude oil price, on May 14, closed at roughly $66.09 per barrel compared with $66.63 recorded on May 13. At the same time, WTI crude oil price closed at approximately $63.15 per barrel compared with $63.67 recorded on May 13.

According to the Organization of the Petroleum Exporting Countries (OPEC), the basket price of thirteen crude oil blends stood at $66.02 per barrel on May 14, compared to $65.38 a barrel recorded on May 13.

The OPEC Reference Basket of Crudes (ORB) consists of the following: Saharan Blend (Algeria), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Iran), Basrah Medium (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

Specific crude oil prices for Nigeria’s Bonny Light, Brass River, and Qua Iboe for May 14 include:

Nigeria Crude Blend
Prices ($ Per Barrel)
Qua Iboe
68.34
Brass River
68.29
Bonny Light
67.00 (As of May 14 2025)

Read: Crude Oil Prices May 12, 2025: Brent & WTI Rates

Factors Influencing Crude Oil Prices: May 14, 2025

  • Oil prices held near two-week highs amid an agreement between the U.S. and China to temporarily lower their reciprocal tariffs. The two largest economies agreed to pause their trade war for at least 90 days, with the U.S. cutting tariffs to 30% from 145% and China slashing duties on U.S. imports to 10% from 125%.
  • Declines in US gasoline and distillate inventories, a sign of resilient fuel demand. Gasoline inventories fell by 1.4 million barrels and distillate stocks fell by 3.7 million barrels

Brent vs WTI Crude Oil Prices

Brent is the global standard pricing for around 60% of the world’s crude from Africa, Europe, and the Middle East. It is traded on the ICE Futures Exchange. Conversely, WTI is the benchmark pricing for crude from the United States. It is more influenced by domestic inventory levels and pipeline constraints ( Cushing, Oklahoma storage hub). It is also traded on the New York Mercantile Exchange (NYMEX).

Key Differences Between Brent and WTI Crude

  • Geography: Brent is sourced from the North Sea, while WTI comes from the United States, primarily Texas.
  • Sulfur Content: Brent and WTI contain light and sweet oil. However, WTI typically has lower sulfur content than Brent.
  • Pricing: Brent crude is generally priced higher than WTI due to logistical and geopolitical factors. The price difference constantly fluctuates based on demand and supply, transportation costs, geopolitics, and other factors.

Why do Brent and WTI have Different Prices?

  • Geographical & Transportation Costs: Brent crude is explored from the North Sea (Europe) and shipped via seaborne oil tankers. However, WTI crude is explored and produced in the United States (Louisiana, Texas, and North Dakota) and transported primarily via pipelines, cheaper than shipping by sea. Since Brent depends on expensive shipping tankers, its price factors in higher transportation premiums
  • Political & Economic Risks: Brent Crude is more vulnerable to global disruptions like OPEC cuts, European demand shifts, and Middle East conflicts. However, WTI is more insulated by US production and infrastructure. For example, the Russia-Ukraine war pushed Brent prices higher than WTI due to fears of European supply.

Can WTI Price Surpass Brent Crude Price?

This is rare but can occur due to US export surges or the tightening of global supplies. The US government’s removal of oil export restrictions in 2015 has narrowed the Brent-WTI price gap. Still, Brent remains the default for international buyers due to established trading hubs and liquidity.

Factor Brent Crude WTI Crude
Origin North Sea (Europe) Texas, United States
Sulfur Content Low (0.37%) Very Low (0.34%)
Density (API) ~38° (Light Sweet Crude) ~39.6° (Lighter than Brent)
Pricing Influence Global benchmark (Europe, Asia, Africa) U.S. benchmark
Futures Exchange ICE (Intercontinental Exchange) NYMEX (New York)
Transportation Costs Higher (offshore drilling) Lower (U.S. pipeline network)

Brent Vs Nigeria Crude Oil Prices

Nigeria produces multiple crude oil grades, including Bonny Light, Brass River, Forcados, Qua Iboe, etc. Since Nigeria exports mainly light sweet crude (similar to Brent), its prices are set relative to the Brent benchmark. However, Nigeria’s crude is not priced at Brent’s exact rate but as a differential (either a premium or discount). The Nigerian National Petroleum Limited (NNPC), the state-owned oil company, sets the Official Selling Price (OSP) for crude oil. It is the price at which Nigeria sells its crude oil to international buyers. The OSP is generally determined based on:

  • Brent price benchmarks
  • Global oil market trends (Demand-Supply Balance),
  • Quality of Nigerian crude grades ( Brass River, Bonny Light, Forcados, or Qua Iboe).

Crude Grade

Typical Price Difference vs. Brent

Key Reasons for Difference

Key Buyers

Brent Crude

Baseline Pricing Reference

Global pricing reference (Light Sweet)

Asia, Europe, Global

Qua Iboe (Nigeria)

+$0.30 to +$3.50

per barrel


High-quality light sweet crude, similar to Bonny Light.

One of Nigeria’s best grades

US & Europe

Bonny Light (Nigeria)

+$0.50 to +$3.00 per barrel

High-quality, light sweet crude; often trades above Brent. Preferred by European refiners

Asia, the US, & Europe

Forcados (Nigeria)

+$0.50 to +$2.00 per barrel

Heavier than Bonny Light but still sweet

Asia & Europe

Brass River (Nigeria)

+$0.40 to +$2.50 per barrel

Similar to Bonny Light.

Slightly less favored than Bonny Light due to occasional quality issues

Asia & Europe

Why Brent is the Pricing Benchmark for Nigeria

  • Similar Oil Characteristics: Both Brent and Nigerian crudes (Bonny Light, Qua Iboe) are light & sweet (low sulfur), making them outstanding for gasoline refining.
  • Global Standard: Brent is the most widely used benchmark for Atlantic Basin crude oil, which includes Nigerian exports. Thus, Nigeria aligns with it for pricing transparency.
  • European Market Reliance: Nigeria exports most of its crude oil to Europe, where Brent dominates pricing.
  • Pricing Transparency: Most international buyers reference Brent. Therefore, Nigeria aligns its crude prices with Brent’s to remain competitive.

Nigeria’s Challenge: Why It Doesn’t Set Its Own Oil Benchmark

Despite being Africa’s largest oil producer, Nigeria does not control its own crude oil pricing benchmark—unlike the US (WTI), UAE (Murban), Saudi Arabia (Arab Light) and Russia (Urals). Instead, it depends on Brent Crude as its reference price. Here’s why:

  • Absence of a Futures Market: Brent and WTI have functional futures markets (ICE & NYMEX), enabling fair market and pricing. Therefore, with no similar exchange in Nigeria, the country relies on Brent. Without futures contracts, Nigerian crude prices are set reactively (based on Brent + adjustments) instead of independently.
  • Supply Disruptions:
    • Oil theft & pipeline vandalism (~200,000 to 400,000 bpd lost in 2023).
    • Force majeure declarations: Bonny Light and Forcados shutdowns due to vandalism or technical issues at Trans Niger Pipeline and Trans Forcados Pipeline, respectively. A benchmark requires a stable, predictable supply. Unfortunately, Nigeria struggles with this situation. Frequent disruptions harm pricing power.
  • Lower Production & Export Volume vs. Major Producers

Country

Crude Benchmark

2024 Avg Exports (Million Barrels Per Day)

Saudi Arabia

Arab Light

5.95

The United States

WTI (NYMEX)

4.1

Nigeria

Priced vs. Brent

1.3 - 1.5

  • Saudi Arabia: Leading OPEC exporter, with exports fluctuating based on OPEC+ quotas.
  • Nigeria: Struggled with production issues (theft, underinvestment) but aimed for ~1.5 million bpd in 2024.
  • United States: Exports surged due to shale production, averaging ~4.1 million bpd (EIA estimates).

Country

Crude Benchmark

2024 Avg Production (Million Barrels Per Day)

The United States

WTI

13.2

Saudi Arabia

Arab Light

12.7

Nigeria

Priced vs. Brent

1.69

  • The United States: The US crude oil production in 2024 averaged 13.2 million barrels per day. The massive growth of shale production is the key reason for the record-high production.
  • Saudi Arabia: Saudi Arabia’s oil production in 2024 averaged 12.7 million barrels per day. Thus, it is the world’s second-largest oil producer.
  • Nigeria: Nigeria’s crude oil production averaged 1.56 million barrels daily in 2024, reflecting ongoing challenges in meeting production targets.

Therefore, Nigeria’s production and crude export output are too small to dictate global prices.

Key Factors Affecting Nigeria’s Brent Crude Price Differential

Nigeria’s crude blends are generally traded at a discount or premium to Brent crude price, depending on:

  • Global demand for light sweet crude.
  • Supply disruptions in Nigeria ( pipeline vandalism, oil theft, militant attacks, force majeure).
  • Freight costs to key markets (Asia, US, and Europe).

Factors

Impact on Nigeria’s Crude Price 

Strong Demand (Europe/US/Asia): Summer driving season & strong economic growth

Weak Demand: Refinery maintenance in Europe/Asia & global recession fears.


Strong Demand → Higher premium

Weaker Demand → Discounts

Supply Disruptions: (Pipeline Attacks, Theft, Forcados)

Discount

Alternative supplies: (US shale oil or Russian Urals competing in Europe)

Excess US supplies → Discounts

OPEC+ Policy & Quota Compliance

Excess Supply: If OPEC+ increases production, Nigerian crude may sell cheaper.

Production cuts: If OPEC+ cuts production, Nigerian crude may sell at premium if demand is strong.

Excess supply → Discounts

Lower cuts → Higher premium

Geopolitical Tensions

Geopolitical tensions, such as the Russia-Ukraine War and Yemen Houthi attacks on commercial ships along the Red Sea tend to disrupt supply chains, leading to higher prices.

Geopolitical Tensions → Supply disruptions → Higher premium


US Dollar Strength & Federal Reserve Policy (Oil is priced in US Dollar)

Higher US interest rates: Leads to stronger dollar which oil more expensive for importers.

Fed rate cuts: Weaken the US Dollar boosting oil demand.


Higher rates → Stronger US Dollar → Higher crude prices → Lower demand → Discount


Lower rates → Weaker US Dollar → lower crude prices → higher demand → Premium

Where to Buy Nigeria Crude Oil

Along with Egypt, Algeria, and Libya, Nigeria is among Africa’s largest crude oil producers. The country generally produces light, sweet crude oil (Forcados, Qua Iboe, Escravos Light, and Bonny Light), which is highly demanded by global markets. To purchase Nigerian crude oil, there are several ways to do so:

  • Direct Purchase from the Nigerian National Petroleum Company Limited (NNPC Limited): The NNPC is the state-owned oil company responsible for Nigeria’s oil & gas resources through a joint venture or Production Sharing Contract with oil producers. NNPC Limited sells its equity crude oil through term contracts and spot sales. However, Buyers must meet strict operational and financial requirements. Some of these conditions include proof of funds and a stable track record in oil trading.
  • International Oil Trading Companies: Many global international oil companies and commodity traders buy and resell Nigerian crude.
    • Commodity Traders: Vitol, Trafigura, Glencore, Gunvor, and Mercuria,
    • International Oil Companies: Shell, Chevron, TotalEnergies, etc.
  • Nigerian Oil & Gas Trading Companies: Some Nigerian-based oil companies, including Oando PLC and Aiteo Group, trade crude oil as intermediaries.
  • Government-to-Government (G2G) Deals: Some countries, like India, purchase Nigerian crude directly through government-backed deals.
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Crude Oil Prices May 28, 2025: Brent & WTI Rates

Published

1 week ago

on

May 29, 2025

By

Get the latest oil price data for May 28, 2025 including Brent & WTI crude prices, and factors influencing the oil prices

Crude oil prices surged on May 28, 2025 amid supply concerns as OPEC+ agreed to leave their output policy unchanged and as the US barred Chevron from exporting Venezuelan crude.

Brent crude oil price, on May 28, closed at roughly $64.32 per barrel compared with $63.57 recorded on May 27. At the same time, WTI crude oil price closed at approximately $62.26 per barrel compared with $60.89 recorded on May 27.

According to the Organization of the Petroleum Exporting Countries (OPEC), the basket price of thirteen crude oil blends stood at $63.78 per barrel on May 27, compared to $64.07 a barrel recorded on May 26.

The OPEC Reference Basket of Crudes (ORB) consists of the following: Saharan Blend (Algeria), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Iran), Basrah Medium (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

Specific crude oil prices for Nigeria’s Bonny Light, Brass River, and Qua Iboe for May 28 include:

Nigeria Crude Blend
Prices ($ Per Barrel)
Qua Iboe
65.71
Brass River
65.66
Bonny Light
66.18 (As of May 28 2025)

Read: Crude Oil Prices May 28, 2025: Brent & WTI Rates

Factors Influencing Crude Oil Prices: May 28, 2025

  • The Trump administration issued a new authorization for US-major Chevron that would allow it to keep assets in Venezuela but not to export oil or expand its activities.
  • OPEC+, the Organization of the Petroleum Exporting Countries and allies, did not change output policy. It agreed to establish a mechanism for setting baselines for its 2027 oil production. A separate meeting on May 31 of eight OPEC+ countries is expected to decide on an increase in oil output for July.

Brent vs WTI Crude Oil Prices

Brent is the global standard pricing for around 60% of the world’s crude from Africa, Europe, and the Middle East. It is traded on the ICE Futures Exchange. Conversely, WTI is the benchmark pricing for crude from the United States. It is more influenced by domestic inventory levels and pipeline constraints ( Cushing, Oklahoma storage hub). It is also traded on the New York Mercantile Exchange (NYMEX).

Key Differences Between Brent and WTI Crude

  • Geography: Brent is sourced from the North Sea, while WTI comes from the United States, primarily Texas.
  • Sulfur Content: Brent and WTI contain light and sweet oil. However, WTI typically has lower sulfur content than Brent.
  • Pricing: Brent crude is generally priced higher than WTI due to logistical and geopolitical factors. The price difference constantly fluctuates based on demand and supply, transportation costs, geopolitics, and other factors.

Why do Brent and WTI have Different Prices?

  • Geographical & Transportation Costs: Brent crude is explored from the North Sea (Europe) and shipped via seaborne oil tankers. However, WTI crude is explored and produced in the United States (Louisiana, Texas, and North Dakota) and transported primarily via pipelines, cheaper than shipping by sea. Since Brent depends on expensive shipping tankers, its price factors in higher transportation premiums
  • Political & Economic Risks: Brent Crude is more vulnerable to global disruptions like OPEC cuts, European demand shifts, and Middle East conflicts. However, WTI is more insulated by US production and infrastructure. For example, the Russia-Ukraine war pushed Brent prices higher than WTI due to fears of European supply.

Can WTI Price Surpass Brent Crude Price?

This is rare but can occur due to US export surges or the tightening of global supplies. The US government’s removal of oil export restrictions in 2015 has narrowed the Brent-WTI price gap. Still, Brent remains the default for international buyers due to established trading hubs and liquidity.

Factor Brent Crude WTI Crude
Origin North Sea (Europe) Texas, United States
Sulfur Content Low (0.37%) Very Low (0.34%)
Density (API) ~38° (Light Sweet Crude) ~39.6° (Lighter than Brent)
Pricing Influence Global benchmark (Europe, Asia, Africa) U.S. benchmark
Futures Exchange ICE (Intercontinental Exchange) NYMEX (New York)
Transportation Costs Higher (offshore drilling) Lower (U.S. pipeline network)

Brent Vs Nigeria Crude Oil Prices

Nigeria produces multiple crude oil grades, including Bonny Light, Brass River, Forcados, Qua Iboe, etc. Since Nigeria exports mainly light sweet crude (similar to Brent), its prices are set relative to the Brent benchmark. However, Nigeria’s crude is not priced at Brent’s exact rate but as a differential (either a premium or discount). The Nigerian National Petroleum Limited (NNPC), the state-owned oil company, sets the Official Selling Price (OSP) for crude oil. It is the price at which Nigeria sells its crude oil to international buyers. The OSP is generally determined based on:

  • Brent price benchmarks
  • Global oil market trends (Demand-Supply Balance),
  • Quality of Nigerian crude grades ( Brass River, Bonny Light, Forcados, or Qua Iboe).

Crude Grade

Typical Price Difference vs. Brent

Key Reasons for Difference

Key Buyers

Brent Crude

Baseline Pricing Reference

Global pricing reference (Light Sweet)

Asia, Europe, Global

Qua Iboe (Nigeria)

+$0.30 to +$3.50

per barrel


High-quality light sweet crude, similar to Bonny Light.

One of Nigeria’s best grades

US & Europe

Bonny Light (Nigeria)

+$0.50 to +$3.00 per barrel

High-quality, light sweet crude; often trades above Brent. Preferred by European refiners

Asia, the US, & Europe

Forcados (Nigeria)

+$0.50 to +$2.00 per barrel

Heavier than Bonny Light but still sweet

Asia & Europe

Brass River (Nigeria)

+$0.40 to +$2.50 per barrel

Similar to Bonny Light.

Slightly less favored than Bonny Light due to occasional quality issues

Asia & Europe

Why Brent is the Pricing Benchmark for Nigeria

  • Similar Oil Characteristics: Both Brent and Nigerian crudes (Bonny Light, Qua Iboe) are light & sweet (low sulfur), making them outstanding for gasoline refining.
  • Global Standard: Brent is the most widely used benchmark for Atlantic Basin crude oil, which includes Nigerian exports. Thus, Nigeria aligns with it for pricing transparency.
  • European Market Reliance: Nigeria exports most of its crude oil to Europe, where Brent dominates pricing.
  • Pricing Transparency: Most international buyers reference Brent. Therefore, Nigeria aligns its crude prices with Brent’s to remain competitive.

Nigeria’s Challenge: Why It Doesn’t Set Its Own Oil Benchmark

Despite being Africa’s largest oil producer, Nigeria does not control its own crude oil pricing benchmark—unlike the US (WTI), UAE (Murban), Saudi Arabia (Arab Light) and Russia (Urals). Instead, it depends on Brent Crude as its reference price. Here’s why:

  • Absence of a Futures Market: Brent and WTI have functional futures markets (ICE & NYMEX), enabling fair market and pricing. Therefore, with no similar exchange in Nigeria, the country relies on Brent. Without futures contracts, Nigerian crude prices are set reactively (based on Brent + adjustments) instead of independently.
  • Supply Disruptions:
    • Oil theft & pipeline vandalism (~200,000 to 400,000 bpd lost in 2023).
    • Force majeure declarations: Bonny Light and Forcados shutdowns due to vandalism or technical issues at Trans Niger Pipeline and Trans Forcados Pipeline, respectively. A benchmark requires a stable, predictable supply. Unfortunately, Nigeria struggles with this situation. Frequent disruptions harm pricing power.
  • Lower Production & Export Volume vs. Major Producers

Country

Crude Benchmark

2024 Avg Exports (Million Barrels Per Day)

Saudi Arabia

Arab Light

5.95

The United States

WTI (NYMEX)

4.1

Nigeria

Priced vs. Brent

1.3 - 1.5

  • Saudi Arabia: Leading OPEC exporter, with exports fluctuating based on OPEC+ quotas.
  • Nigeria: Struggled with production issues (theft, underinvestment) but aimed for ~1.5 million bpd in 2024.
  • United States: Exports surged due to shale production, averaging ~4.1 million bpd (EIA estimates).

Country

Crude Benchmark

2024 Avg Production (Million Barrels Per Day)

The United States

WTI

13.2

Saudi Arabia

Arab Light

12.7

Nigeria

Priced vs. Brent

1.69

  • The United States: The US crude oil production in 2024 averaged 13.2 million barrels per day. The massive growth of shale production is the key reason for the record-high production.
  • Saudi Arabia: Saudi Arabia’s oil production in 2024 averaged 12.7 million barrels per day. Thus, it is the world’s second-largest oil producer.
  • Nigeria: Nigeria’s crude oil production averaged 1.56 million barrels daily in 2024, reflecting ongoing challenges in meeting production targets.

Therefore, Nigeria’s production and crude export output are too small to dictate global prices.

Key Factors Affecting Nigeria’s Brent Crude Price Differential

Nigeria’s crude blends are generally traded at a discount or premium to Brent crude price, depending on:

  • Global demand for light sweet crude.
  • Supply disruptions in Nigeria ( pipeline vandalism, oil theft, militant attacks, force majeure).
  • Freight costs to key markets (Asia, US, and Europe).

Factors

Impact on Nigeria’s Crude Price 

Strong Demand (Europe/US/Asia): Summer driving season & strong economic growth

Weak Demand: Refinery maintenance in Europe/Asia & global recession fears.


Strong Demand → Higher premium

Weaker Demand → Discounts

Supply Disruptions: (Pipeline Attacks, Theft, Forcados)

Discount

Alternative supplies: (US shale oil or Russian Urals competing in Europe)

Excess US supplies → Discounts

OPEC+ Policy & Quota Compliance

Excess Supply: If OPEC+ increases production, Nigerian crude may sell cheaper.

Production cuts: If OPEC+ cuts production, Nigerian crude may sell at premium if demand is strong.

Excess supply → Discounts

Lower cuts → Higher premium

Geopolitical Tensions

Geopolitical tensions, such as the Russia-Ukraine War and Yemen Houthi attacks on commercial ships along the Red Sea tend to disrupt supply chains, leading to higher prices.

Geopolitical Tensions → Supply disruptions → Higher premium


US Dollar Strength & Federal Reserve Policy (Oil is priced in US Dollar)

Higher US interest rates: Leads to stronger dollar which oil more expensive for importers.

Fed rate cuts: Weaken the US Dollar boosting oil demand.


Higher rates → Stronger US Dollar → Higher crude prices → Lower demand → Discount


Lower rates → Weaker US Dollar → lower crude prices → higher demand → Premium

Where to Buy Nigeria Crude Oil

Along with Egypt, Algeria, and Libya, Nigeria is among Africa’s largest crude oil producers. The country generally produces light, sweet crude oil (Forcados, Qua Iboe, Escravos Light, and Bonny Light), which is highly demanded by global markets. To purchase Nigerian crude oil, there are several ways to do so:

  • Direct Purchase from the Nigerian National Petroleum Company Limited (NNPC Limited): The NNPC is the state-owned oil company responsible for Nigeria’s oil & gas resources through a joint venture or Production Sharing Contract with oil producers. NNPC Limited sells its equity crude oil through term contracts and spot sales. However, Buyers must meet strict operational and financial requirements. Some of these conditions include proof of funds and a stable track record in oil trading.
  • International Oil Trading Companies: Many global international oil companies and commodity traders buy and resell Nigerian crude.
    • Commodity Traders: Vitol, Trafigura, Glencore, Gunvor, and Mercuria,
    • International Oil Companies: Shell, Chevron, TotalEnergies, etc.
  • Nigerian Oil & Gas Trading Companies: Some Nigerian-based oil companies, including Oando PLC and Aiteo Group, trade crude oil as intermediaries.
  • Government-to-Government (G2G) Deals: Some countries, like India, purchase Nigerian crude directly through government-backed deals.
Continue Reading

Oil

Crude Oil Prices May 27, 2025: Brent & WTI Rates

Published

1 week ago

on

May 28, 2025

By

Get the latest oil price data for May 27, 2025 including Brent & WTI crude prices, and factors influencing the oil prices

Crude oil prices fell on May 27, 2025 amid investors worries about a supply glut after US-Iran talks made progress and on expectations that OPEC+ will decide to increase output at a meeting this week.

Brent crude oil price, on May 27, closed at roughly $63.57 per barrel compared with $64.12 recorded on May 26. At the same time, WTI crude oil price closed at approximately $60.89 per barrel compared with $61.49 recorded on May 26.

According to the Organization of the Petroleum Exporting Countries (OPEC), the basket price of thirteen crude oil blends stood at $64.07 per barrel on May 26, compared to $63.63 a barrel recorded on May 23.

The OPEC Reference Basket of Crudes (ORB) consists of the following: Saharan Blend (Algeria), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Iran), Basrah Medium (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

Specific crude oil prices for Nigeria’s Bonny Light, Brass River, and Qua Iboe for May 27 include:

Nigeria Crude Blend
Prices ($ Per Barrel)
Qua Iboe
66.23
Brass River
66.18
Bonny Light
66.28 (As of May 23 2025)

Read: Crude Oil Prices May 21, 2025: Brent & WTI Rates

Factors Influencing Crude Oil Prices: May 27, 2025

  • OPEC+ also meets next week where they will likely agree on further output increases. Eight OPEC+ members that had pledged additional voluntary cuts are now expected to meet on May 31.
  • US President Donald Trump’s decision to extend trade talks with the European Union until July 9 alleviated immediate fears of tariffs that could suppress fuel demand.
  • Meanwhile, the US & Iran wrapped up a fifth round of talks in Rome last week. While signs of limited progress emerged, there were many points of disagreement that were hard to breach, notably the issue of Iran’s uranium enrichment. Should nuclear talks fail, it could mean continued sanctions on Iran, which would limit Iranian oil supply.
  • Reports that US crude oil stockpiles rose by about 500,000 barrels last week.

Brent vs WTI Crude Oil Prices

Brent is the global standard pricing for around 60% of the world’s crude from Africa, Europe, and the Middle East. It is traded on the ICE Futures Exchange. Conversely, WTI is the benchmark pricing for crude from the United States. It is more influenced by domestic inventory levels and pipeline constraints ( Cushing, Oklahoma storage hub). It is also traded on the New York Mercantile Exchange (NYMEX).

Key Differences Between Brent and WTI Crude

  • Geography: Brent is sourced from the North Sea, while WTI comes from the United States, primarily Texas.
  • Sulfur Content: Brent and WTI contain light and sweet oil. However, WTI typically has lower sulfur content than Brent.
  • Pricing: Brent crude is generally priced higher than WTI due to logistical and geopolitical factors. The price difference constantly fluctuates based on demand and supply, transportation costs, geopolitics, and other factors.

Why do Brent and WTI have Different Prices?

  • Geographical & Transportation Costs: Brent crude is explored from the North Sea (Europe) and shipped via seaborne oil tankers. However, WTI crude is explored and produced in the United States (Louisiana, Texas, and North Dakota) and transported primarily via pipelines, cheaper than shipping by sea. Since Brent depends on expensive shipping tankers, its price factors in higher transportation premiums
  • Political & Economic Risks: Brent Crude is more vulnerable to global disruptions like OPEC cuts, European demand shifts, and Middle East conflicts. However, WTI is more insulated by US production and infrastructure. For example, the Russia-Ukraine war pushed Brent prices higher than WTI due to fears of European supply.

Can WTI Price Surpass Brent Crude Price?

This is rare but can occur due to US export surges or the tightening of global supplies. The US government’s removal of oil export restrictions in 2015 has narrowed the Brent-WTI price gap. Still, Brent remains the default for international buyers due to established trading hubs and liquidity.

Factor Brent Crude WTI Crude
Origin North Sea (Europe) Texas, United States
Sulfur Content Low (0.37%) Very Low (0.34%)
Density (API) ~38° (Light Sweet Crude) ~39.6° (Lighter than Brent)
Pricing Influence Global benchmark (Europe, Asia, Africa) U.S. benchmark
Futures Exchange ICE (Intercontinental Exchange) NYMEX (New York)
Transportation Costs Higher (offshore drilling) Lower (U.S. pipeline network)

Brent Vs Nigeria Crude Oil Prices

Nigeria produces multiple crude oil grades, including Bonny Light, Brass River, Forcados, Qua Iboe, etc. Since Nigeria exports mainly light sweet crude (similar to Brent), its prices are set relative to the Brent benchmark. However, Nigeria’s crude is not priced at Brent’s exact rate but as a differential (either a premium or discount). The Nigerian National Petroleum Limited (NNPC), the state-owned oil company, sets the Official Selling Price (OSP) for crude oil. It is the price at which Nigeria sells its crude oil to international buyers. The OSP is generally determined based on:

  • Brent price benchmarks
  • Global oil market trends (Demand-Supply Balance),
  • Quality of Nigerian crude grades ( Brass River, Bonny Light, Forcados, or Qua Iboe).

Crude Grade

Typical Price Difference vs. Brent

Key Reasons for Difference

Key Buyers

Brent Crude

Baseline Pricing Reference

Global pricing reference (Light Sweet)

Asia, Europe, Global

Qua Iboe (Nigeria)

+$0.30 to +$3.50

per barrel


High-quality light sweet crude, similar to Bonny Light.

One of Nigeria’s best grades

US & Europe

Bonny Light (Nigeria)

+$0.50 to +$3.00 per barrel

High-quality, light sweet crude; often trades above Brent. Preferred by European refiners

Asia, the US, & Europe

Forcados (Nigeria)

+$0.50 to +$2.00 per barrel

Heavier than Bonny Light but still sweet

Asia & Europe

Brass River (Nigeria)

+$0.40 to +$2.50 per barrel

Similar to Bonny Light.

Slightly less favored than Bonny Light due to occasional quality issues

Asia & Europe

Why Brent is the Pricing Benchmark for Nigeria

  • Similar Oil Characteristics: Both Brent and Nigerian crudes (Bonny Light, Qua Iboe) are light & sweet (low sulfur), making them outstanding for gasoline refining.
  • Global Standard: Brent is the most widely used benchmark for Atlantic Basin crude oil, which includes Nigerian exports. Thus, Nigeria aligns with it for pricing transparency.
  • European Market Reliance: Nigeria exports most of its crude oil to Europe, where Brent dominates pricing.
  • Pricing Transparency: Most international buyers reference Brent. Therefore, Nigeria aligns its crude prices with Brent’s to remain competitive.

Nigeria’s Challenge: Why It Doesn’t Set Its Own Oil Benchmark

Despite being Africa’s largest oil producer, Nigeria does not control its own crude oil pricing benchmark—unlike the US (WTI), UAE (Murban), Saudi Arabia (Arab Light) and Russia (Urals). Instead, it depends on Brent Crude as its reference price. Here’s why:

  • Absence of a Futures Market: Brent and WTI have functional futures markets (ICE & NYMEX), enabling fair market and pricing. Therefore, with no similar exchange in Nigeria, the country relies on Brent. Without futures contracts, Nigerian crude prices are set reactively (based on Brent + adjustments) instead of independently.
  • Supply Disruptions:
    • Oil theft & pipeline vandalism (~200,000 to 400,000 bpd lost in 2023).
    • Force majeure declarations: Bonny Light and Forcados shutdowns due to vandalism or technical issues at Trans Niger Pipeline and Trans Forcados Pipeline, respectively. A benchmark requires a stable, predictable supply. Unfortunately, Nigeria struggles with this situation. Frequent disruptions harm pricing power.
  • Lower Production & Export Volume vs. Major Producers

Country

Crude Benchmark

2024 Avg Exports (Million Barrels Per Day)

Saudi Arabia

Arab Light

5.95

The United States

WTI (NYMEX)

4.1

Nigeria

Priced vs. Brent

1.3 - 1.5

  • Saudi Arabia: Leading OPEC exporter, with exports fluctuating based on OPEC+ quotas.
  • Nigeria: Struggled with production issues (theft, underinvestment) but aimed for ~1.5 million bpd in 2024.
  • United States: Exports surged due to shale production, averaging ~4.1 million bpd (EIA estimates).

Country

Crude Benchmark

2024 Avg Production (Million Barrels Per Day)

The United States

WTI

13.2

Saudi Arabia

Arab Light

12.7

Nigeria

Priced vs. Brent

1.69

  • The United States: The US crude oil production in 2024 averaged 13.2 million barrels per day. The massive growth of shale production is the key reason for the record-high production.
  • Saudi Arabia: Saudi Arabia’s oil production in 2024 averaged 12.7 million barrels per day. Thus, it is the world’s second-largest oil producer.
  • Nigeria: Nigeria’s crude oil production averaged 1.56 million barrels daily in 2024, reflecting ongoing challenges in meeting production targets.

Therefore, Nigeria’s production and crude export output are too small to dictate global prices.

Key Factors Affecting Nigeria’s Brent Crude Price Differential

Nigeria’s crude blends are generally traded at a discount or premium to Brent crude price, depending on:

  • Global demand for light sweet crude.
  • Supply disruptions in Nigeria ( pipeline vandalism, oil theft, militant attacks, force majeure).
  • Freight costs to key markets (Asia, US, and Europe).

Factors

Impact on Nigeria’s Crude Price 

Strong Demand (Europe/US/Asia): Summer driving season & strong economic growth

Weak Demand: Refinery maintenance in Europe/Asia & global recession fears.


Strong Demand → Higher premium

Weaker Demand → Discounts

Supply Disruptions: (Pipeline Attacks, Theft, Forcados)

Discount

Alternative supplies: (US shale oil or Russian Urals competing in Europe)

Excess US supplies → Discounts

OPEC+ Policy & Quota Compliance

Excess Supply: If OPEC+ increases production, Nigerian crude may sell cheaper.

Production cuts: If OPEC+ cuts production, Nigerian crude may sell at premium if demand is strong.

Excess supply → Discounts

Lower cuts → Higher premium

Geopolitical Tensions

Geopolitical tensions, such as the Russia-Ukraine War and Yemen Houthi attacks on commercial ships along the Red Sea tend to disrupt supply chains, leading to higher prices.

Geopolitical Tensions → Supply disruptions → Higher premium


US Dollar Strength & Federal Reserve Policy (Oil is priced in US Dollar)

Higher US interest rates: Leads to stronger dollar which oil more expensive for importers.

Fed rate cuts: Weaken the US Dollar boosting oil demand.


Higher rates → Stronger US Dollar → Higher crude prices → Lower demand → Discount


Lower rates → Weaker US Dollar → lower crude prices → higher demand → Premium

Where to Buy Nigeria Crude Oil

Along with Egypt, Algeria, and Libya, Nigeria is among Africa’s largest crude oil producers. The country generally produces light, sweet crude oil (Forcados, Qua Iboe, Escravos Light, and Bonny Light), which is highly demanded by global markets. To purchase Nigerian crude oil, there are several ways to do so:

  • Direct Purchase from the Nigerian National Petroleum Company Limited (NNPC Limited): The NNPC is the state-owned oil company responsible for Nigeria’s oil & gas resources through a joint venture or Production Sharing Contract with oil producers. NNPC Limited sells its equity crude oil through term contracts and spot sales. However, Buyers must meet strict operational and financial requirements. Some of these conditions include proof of funds and a stable track record in oil trading.
  • International Oil Trading Companies: Many global international oil companies and commodity traders buy and resell Nigerian crude.
    • Commodity Traders: Vitol, Trafigura, Glencore, Gunvor, and Mercuria,
    • International Oil Companies: Shell, Chevron, TotalEnergies, etc.
  • Nigerian Oil & Gas Trading Companies: Some Nigerian-based oil companies, including Oando PLC and Aiteo Group, trade crude oil as intermediaries.
  • Government-to-Government (G2G) Deals: Some countries, like India, purchase Nigerian crude directly through government-backed deals.
Continue Reading

Oil

Crude Oil Prices May 21, 2025: Brent & WTI Rates

Published

2 weeks ago

on

May 22, 2025

By

Get the latest oil price data for May 21, 2025 including Brent & WTI crude prices, and factors influencing the oil prices
Crude oil prices fell on May 21, 2025 after the government released bearish data on crude and fuel supplies ahead of the start of the summer driving season in the United States, a period of higher demand. Prices had increased about 1% following reports Israel could be preparing to strike Iranian nuclear facilities raised fears of a supply disruption in the Middle East.

Brent crude oil price, on May 21, closed at roughly $64.38 per barrel compared with $64.76 recorded on May 20. At the same time, WTI crude oil price closed at approximately $61.57 per barrel compared with $62.56 recorded on May 20.

According to the Organization of the Petroleum Exporting Countries (OPEC), the basket price of thirteen crude oil blends stood at $65.60 per barrel on May 21, compared to $65.01 a barrel recorded on May 20.

The OPEC Reference Basket of Crudes (ORB) consists of the following: Saharan Blend (Algeria), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Iran), Basrah Medium (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

Specific crude oil prices for Nigeria’s Bonny Light, Brass River, and Qua Iboe for May 21 include:

Nigeria Crude Blend
Prices ($ Per Barrel)
Qua Iboe
67.46
Brass River
67.41
Bonny Light
67.50 (As of May 20 2025)

Read: Crude Oil Prices May 20, 2025: Brent & WTI Rates

Factors Influencing Crude Oil Prices: May 21, 2025

  • According to the latest data from the Energy Information Administration, US crude, gasoline and distillate inventories all posted surprise builds in the week ended May 16. Crude inventories rose by 1.3 million barrels, while gasoline stocks rose by about 800,000 barrels and distillate stockpiles added about 600,000 barrels.
  • Kazakhstan’s oil production, has risen by 2% in May, defying OPEC+ pressure to reduce output.

Brent vs WTI Crude Oil Prices

Brent is the global standard pricing for around 60% of the world’s crude from Africa, Europe, and the Middle East. It is traded on the ICE Futures Exchange. Conversely, WTI is the benchmark pricing for crude from the United States. It is more influenced by domestic inventory levels and pipeline constraints ( Cushing, Oklahoma storage hub). It is also traded on the New York Mercantile Exchange (NYMEX).

Key Differences Between Brent and WTI Crude

  • Geography: Brent is sourced from the North Sea, while WTI comes from the United States, primarily Texas.
  • Sulfur Content: Brent and WTI contain light and sweet oil. However, WTI typically has lower sulfur content than Brent.
  • Pricing: Brent crude is generally priced higher than WTI due to logistical and geopolitical factors. The price difference constantly fluctuates based on demand and supply, transportation costs, geopolitics, and other factors.

Why do Brent and WTI have Different Prices?

  • Geographical & Transportation Costs: Brent crude is explored from the North Sea (Europe) and shipped via seaborne oil tankers. However, WTI crude is explored and produced in the United States (Louisiana, Texas, and North Dakota) and transported primarily via pipelines, cheaper than shipping by sea. Since Brent depends on expensive shipping tankers, its price factors in higher transportation premiums
  • Political & Economic Risks: Brent Crude is more vulnerable to global disruptions like OPEC cuts, European demand shifts, and Middle East conflicts. However, WTI is more insulated by US production and infrastructure. For example, the Russia-Ukraine war pushed Brent prices higher than WTI due to fears of European supply.

Can WTI Price Surpass Brent Crude Price?

This is rare but can occur due to US export surges or the tightening of global supplies. The US government’s removal of oil export restrictions in 2015 has narrowed the Brent-WTI price gap. Still, Brent remains the default for international buyers due to established trading hubs and liquidity.

Factor Brent Crude WTI Crude
Origin North Sea (Europe) Texas, United States
Sulfur Content Low (0.37%) Very Low (0.34%)
Density (API) ~38° (Light Sweet Crude) ~39.6° (Lighter than Brent)
Pricing Influence Global benchmark (Europe, Asia, Africa) U.S. benchmark
Futures Exchange ICE (Intercontinental Exchange) NYMEX (New York)
Transportation Costs Higher (offshore drilling) Lower (U.S. pipeline network)

Brent Vs Nigeria Crude Oil Prices

Nigeria produces multiple crude oil grades, including Bonny Light, Brass River, Forcados, Qua Iboe, etc. Since Nigeria exports mainly light sweet crude (similar to Brent), its prices are set relative to the Brent benchmark. However, Nigeria’s crude is not priced at Brent’s exact rate but as a differential (either a premium or discount). The Nigerian National Petroleum Limited (NNPC), the state-owned oil company, sets the Official Selling Price (OSP) for crude oil. It is the price at which Nigeria sells its crude oil to international buyers. The OSP is generally determined based on:

  • Brent price benchmarks
  • Global oil market trends (Demand-Supply Balance),
  • Quality of Nigerian crude grades ( Brass River, Bonny Light, Forcados, or Qua Iboe).

Crude Grade

Typical Price Difference vs. Brent

Key Reasons for Difference

Key Buyers

Brent Crude

Baseline Pricing Reference

Global pricing reference (Light Sweet)

Asia, Europe, Global

Qua Iboe (Nigeria)

+$0.30 to +$3.50

per barrel


High-quality light sweet crude, similar to Bonny Light.

One of Nigeria’s best grades

US & Europe

Bonny Light (Nigeria)

+$0.50 to +$3.00 per barrel

High-quality, light sweet crude; often trades above Brent. Preferred by European refiners

Asia, the US, & Europe

Forcados (Nigeria)

+$0.50 to +$2.00 per barrel

Heavier than Bonny Light but still sweet

Asia & Europe

Brass River (Nigeria)

+$0.40 to +$2.50 per barrel

Similar to Bonny Light.

Slightly less favored than Bonny Light due to occasional quality issues

Asia & Europe

Why Brent is the Pricing Benchmark for Nigeria

  • Similar Oil Characteristics: Both Brent and Nigerian crudes (Bonny Light, Qua Iboe) are light & sweet (low sulfur), making them outstanding for gasoline refining.
  • Global Standard: Brent is the most widely used benchmark for Atlantic Basin crude oil, which includes Nigerian exports. Thus, Nigeria aligns with it for pricing transparency.
  • European Market Reliance: Nigeria exports most of its crude oil to Europe, where Brent dominates pricing.
  • Pricing Transparency: Most international buyers reference Brent. Therefore, Nigeria aligns its crude prices with Brent’s to remain competitive.

Nigeria’s Challenge: Why It Doesn’t Set Its Own Oil Benchmark

Despite being Africa’s largest oil producer, Nigeria does not control its own crude oil pricing benchmark—unlike the US (WTI), UAE (Murban), Saudi Arabia (Arab Light) and Russia (Urals). Instead, it depends on Brent Crude as its reference price. Here’s why:

  • Absence of a Futures Market: Brent and WTI have functional futures markets (ICE & NYMEX), enabling fair market and pricing. Therefore, with no similar exchange in Nigeria, the country relies on Brent. Without futures contracts, Nigerian crude prices are set reactively (based on Brent + adjustments) instead of independently.
  • Supply Disruptions:
    • Oil theft & pipeline vandalism (~200,000 to 400,000 bpd lost in 2023).
    • Force majeure declarations: Bonny Light and Forcados shutdowns due to vandalism or technical issues at Trans Niger Pipeline and Trans Forcados Pipeline, respectively. A benchmark requires a stable, predictable supply. Unfortunately, Nigeria struggles with this situation. Frequent disruptions harm pricing power.
  • Lower Production & Export Volume vs. Major Producers

Country

Crude Benchmark

2024 Avg Exports (Million Barrels Per Day)

Saudi Arabia

Arab Light

5.95

The United States

WTI (NYMEX)

4.1

Nigeria

Priced vs. Brent

1.3 - 1.5

  • Saudi Arabia: Leading OPEC exporter, with exports fluctuating based on OPEC+ quotas.
  • Nigeria: Struggled with production issues (theft, underinvestment) but aimed for ~1.5 million bpd in 2024.
  • United States: Exports surged due to shale production, averaging ~4.1 million bpd (EIA estimates).

Country

Crude Benchmark

2024 Avg Production (Million Barrels Per Day)

The United States

WTI

13.2

Saudi Arabia

Arab Light

12.7

Nigeria

Priced vs. Brent

1.69

  • The United States: The US crude oil production in 2024 averaged 13.2 million barrels per day. The massive growth of shale production is the key reason for the record-high production.
  • Saudi Arabia: Saudi Arabia’s oil production in 2024 averaged 12.7 million barrels per day. Thus, it is the world’s second-largest oil producer.
  • Nigeria: Nigeria’s crude oil production averaged 1.56 million barrels daily in 2024, reflecting ongoing challenges in meeting production targets.

Therefore, Nigeria’s production and crude export output are too small to dictate global prices.

Key Factors Affecting Nigeria’s Brent Crude Price Differential

Nigeria’s crude blends are generally traded at a discount or premium to Brent crude price, depending on:

  • Global demand for light sweet crude.
  • Supply disruptions in Nigeria ( pipeline vandalism, oil theft, militant attacks, force majeure).
  • Freight costs to key markets (Asia, US, and Europe).

Factors

Impact on Nigeria’s Crude Price 

Strong Demand (Europe/US/Asia): Summer driving season & strong economic growth

Weak Demand: Refinery maintenance in Europe/Asia & global recession fears.


Strong Demand → Higher premium

Weaker Demand → Discounts

Supply Disruptions: (Pipeline Attacks, Theft, Forcados)

Discount

Alternative supplies: (US shale oil or Russian Urals competing in Europe)

Excess US supplies → Discounts

OPEC+ Policy & Quota Compliance

Excess Supply: If OPEC+ increases production, Nigerian crude may sell cheaper.

Production cuts: If OPEC+ cuts production, Nigerian crude may sell at premium if demand is strong.

Excess supply → Discounts

Lower cuts → Higher premium

Geopolitical Tensions

Geopolitical tensions, such as the Russia-Ukraine War and Yemen Houthi attacks on commercial ships along the Red Sea tend to disrupt supply chains, leading to higher prices.

Geopolitical Tensions → Supply disruptions → Higher premium


US Dollar Strength & Federal Reserve Policy (Oil is priced in US Dollar)

Higher US interest rates: Leads to stronger dollar which oil more expensive for importers.

Fed rate cuts: Weaken the US Dollar boosting oil demand.


Higher rates → Stronger US Dollar → Higher crude prices → Lower demand → Discount


Lower rates → Weaker US Dollar → lower crude prices → higher demand → Premium

Where to Buy Nigeria Crude Oil

Along with Egypt, Algeria, and Libya, Nigeria is among Africa’s largest crude oil producers. The country generally produces light, sweet crude oil (Forcados, Qua Iboe, Escravos Light, and Bonny Light), which is highly demanded by global markets. To purchase Nigerian crude oil, there are several ways to do so:

  • Direct Purchase from the Nigerian National Petroleum Company Limited (NNPC Limited): The NNPC is the state-owned oil company responsible for Nigeria’s oil & gas resources through a joint venture or Production Sharing Contract with oil producers. NNPC Limited sells its equity crude oil through term contracts and spot sales. However, Buyers must meet strict operational and financial requirements. Some of these conditions include proof of funds and a stable track record in oil trading.
  • International Oil Trading Companies: Many global international oil companies and commodity traders buy and resell Nigerian crude.
    • Commodity Traders: Vitol, Trafigura, Glencore, Gunvor, and Mercuria,
    • International Oil Companies: Shell, Chevron, TotalEnergies, etc.
  • Nigerian Oil & Gas Trading Companies: Some Nigerian-based oil companies, including Oando PLC and Aiteo Group, trade crude oil as intermediaries.
  • Government-to-Government (G2G) Deals: Some countries, like India, purchase Nigerian crude directly through government-backed deals.
Continue Reading

Oil

Crude Oil Prices May 20, 2025: Brent & WTI Rates

Published

2 weeks ago

on

May 21, 2025

By

Get the latest oil price data for May 20, 2025 including Brent & WTI crude prices, and factors influencing the oil prices
Crude oil prices fell on May 20, 2025 as traders weighed the impact on supply from Russia-Ukraine peace talks and US-Iran negotiations, strong front-month physical demand in Asia and a cautious outlook for China’s economy.

Brent crude oil price, on May 20, closed at roughly $65.38 per barrel compared with $65.54 recorded on May 19. At the same time, WTI crude oil price closed at approximately $63.02 per barrel compared with $62.14 recorded on May 19.

According to the Organization of the Petroleum Exporting Countries (OPEC), the basket price of thirteen crude oil blends stood at $65.01 per barrel on May 19, compared to $64.65 a barrel recorded on May 19.

The OPEC Reference Basket of Crudes (ORB) consists of the following: Saharan Blend (Algeria), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Iran), Basrah Medium (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

Specific crude oil prices for Nigeria’s Bonny Light, Brass River, and Qua Iboe for May 20 include:

Nigeria Crude Blend
Prices ($ Per Barrel)
Qua Iboe
67.42
Brass River
67.37
Bonny Light
67.50 (As of May 20 2025)

Read: Crude Oil Prices May 19, 2025: Brent & WTI Rates

Factors Influencing Crude Oil Prices: May 20, 2025

  • The impact on supply from Russia-Ukraine peace talks which could swell supply and weigh on prices.
  • US-Iran negotiations. A deal would have paved the way for the easing of US sanctions and allowed Iran to raise oil exports by 300,000 barrels to 400,000 barrels per day.
  • Cautious outlook for China’s economy. Data released showed decelerating industrial output growth and retail sales in China, the world’s top oil importer.
  • A US sovereign downgrade by Moody’s also dampened the economic outlook for the world’s biggest energy consumer, pinning back oil prices. The ratings agency cut the US sovereign credit rating by one notch on Friday, citing concerns about its growing debt of $36 trillion.

Brent vs WTI Crude Oil Prices

Brent is the global standard pricing for around 60% of the world’s crude from Africa, Europe, and the Middle East. It is traded on the ICE Futures Exchange. Conversely, WTI is the benchmark pricing for crude from the United States. It is more influenced by domestic inventory levels and pipeline constraints ( Cushing, Oklahoma storage hub). It is also traded on the New York Mercantile Exchange (NYMEX).

Key Differences Between Brent and WTI Crude

  • Geography: Brent is sourced from the North Sea, while WTI comes from the United States, primarily Texas.
  • Sulfur Content: Brent and WTI contain light and sweet oil. However, WTI typically has lower sulfur content than Brent.
  • Pricing: Brent crude is generally priced higher than WTI due to logistical and geopolitical factors. The price difference constantly fluctuates based on demand and supply, transportation costs, geopolitics, and other factors.

Why do Brent and WTI have Different Prices?

  • Geographical & Transportation Costs: Brent crude is explored from the North Sea (Europe) and shipped via seaborne oil tankers. However, WTI crude is explored and produced in the United States (Louisiana, Texas, and North Dakota) and transported primarily via pipelines, cheaper than shipping by sea. Since Brent depends on expensive shipping tankers, its price factors in higher transportation premiums
  • Political & Economic Risks: Brent Crude is more vulnerable to global disruptions like OPEC cuts, European demand shifts, and Middle East conflicts. However, WTI is more insulated by US production and infrastructure. For example, the Russia-Ukraine war pushed Brent prices higher than WTI due to fears of European supply.

Can WTI Price Surpass Brent Crude Price?

This is rare but can occur due to US export surges or the tightening of global supplies. The US government’s removal of oil export restrictions in 2015 has narrowed the Brent-WTI price gap. Still, Brent remains the default for international buyers due to established trading hubs and liquidity.

Factor Brent Crude WTI Crude
Origin North Sea (Europe) Texas, United States
Sulfur Content Low (0.37%) Very Low (0.34%)
Density (API) ~38° (Light Sweet Crude) ~39.6° (Lighter than Brent)
Pricing Influence Global benchmark (Europe, Asia, Africa) U.S. benchmark
Futures Exchange ICE (Intercontinental Exchange) NYMEX (New York)
Transportation Costs Higher (offshore drilling) Lower (U.S. pipeline network)

Brent Vs Nigeria Crude Oil Prices

Nigeria produces multiple crude oil grades, including Bonny Light, Brass River, Forcados, Qua Iboe, etc. Since Nigeria exports mainly light sweet crude (similar to Brent), its prices are set relative to the Brent benchmark. However, Nigeria’s crude is not priced at Brent’s exact rate but as a differential (either a premium or discount). The Nigerian National Petroleum Limited (NNPC), the state-owned oil company, sets the Official Selling Price (OSP) for crude oil. It is the price at which Nigeria sells its crude oil to international buyers. The OSP is generally determined based on:

  • Brent price benchmarks
  • Global oil market trends (Demand-Supply Balance),
  • Quality of Nigerian crude grades ( Brass River, Bonny Light, Forcados, or Qua Iboe).

Crude Grade

Typical Price Difference vs. Brent

Key Reasons for Difference

Key Buyers

Brent Crude

Baseline Pricing Reference

Global pricing reference (Light Sweet)

Asia, Europe, Global

Qua Iboe (Nigeria)

+$0.30 to +$3.50

per barrel


High-quality light sweet crude, similar to Bonny Light.

One of Nigeria’s best grades

US & Europe

Bonny Light (Nigeria)

+$0.50 to +$3.00 per barrel

High-quality, light sweet crude; often trades above Brent. Preferred by European refiners

Asia, the US, & Europe

Forcados (Nigeria)

+$0.50 to +$2.00 per barrel

Heavier than Bonny Light but still sweet

Asia & Europe

Brass River (Nigeria)

+$0.40 to +$2.50 per barrel

Similar to Bonny Light.

Slightly less favored than Bonny Light due to occasional quality issues

Asia & Europe

Why Brent is the Pricing Benchmark for Nigeria

  • Similar Oil Characteristics: Both Brent and Nigerian crudes (Bonny Light, Qua Iboe) are light & sweet (low sulfur), making them outstanding for gasoline refining.
  • Global Standard: Brent is the most widely used benchmark for Atlantic Basin crude oil, which includes Nigerian exports. Thus, Nigeria aligns with it for pricing transparency.
  • European Market Reliance: Nigeria exports most of its crude oil to Europe, where Brent dominates pricing.
  • Pricing Transparency: Most international buyers reference Brent. Therefore, Nigeria aligns its crude prices with Brent’s to remain competitive.

Nigeria’s Challenge: Why It Doesn’t Set Its Own Oil Benchmark

Despite being Africa’s largest oil producer, Nigeria does not control its own crude oil pricing benchmark—unlike the US (WTI), UAE (Murban), Saudi Arabia (Arab Light) and Russia (Urals). Instead, it depends on Brent Crude as its reference price. Here’s why:

  • Absence of a Futures Market: Brent and WTI have functional futures markets (ICE & NYMEX), enabling fair market and pricing. Therefore, with no similar exchange in Nigeria, the country relies on Brent. Without futures contracts, Nigerian crude prices are set reactively (based on Brent + adjustments) instead of independently.
  • Supply Disruptions:
    • Oil theft & pipeline vandalism (~200,000 to 400,000 bpd lost in 2023).
    • Force majeure declarations: Bonny Light and Forcados shutdowns due to vandalism or technical issues at Trans Niger Pipeline and Trans Forcados Pipeline, respectively. A benchmark requires a stable, predictable supply. Unfortunately, Nigeria struggles with this situation. Frequent disruptions harm pricing power.
  • Lower Production & Export Volume vs. Major Producers

Country

Crude Benchmark

2024 Avg Exports (Million Barrels Per Day)

Saudi Arabia

Arab Light

5.95

The United States

WTI (NYMEX)

4.1

Nigeria

Priced vs. Brent

1.3 - 1.5

  • Saudi Arabia: Leading OPEC exporter, with exports fluctuating based on OPEC+ quotas.
  • Nigeria: Struggled with production issues (theft, underinvestment) but aimed for ~1.5 million bpd in 2024.
  • United States: Exports surged due to shale production, averaging ~4.1 million bpd (EIA estimates).

Country

Crude Benchmark

2024 Avg Production (Million Barrels Per Day)

The United States

WTI

13.2

Saudi Arabia

Arab Light

12.7

Nigeria

Priced vs. Brent

1.69

  • The United States: The US crude oil production in 2024 averaged 13.2 million barrels per day. The massive growth of shale production is the key reason for the record-high production.
  • Saudi Arabia: Saudi Arabia’s oil production in 2024 averaged 12.7 million barrels per day. Thus, it is the world’s second-largest oil producer.
  • Nigeria: Nigeria’s crude oil production averaged 1.56 million barrels daily in 2024, reflecting ongoing challenges in meeting production targets.

Therefore, Nigeria’s production and crude export output are too small to dictate global prices.

Key Factors Affecting Nigeria’s Brent Crude Price Differential

Nigeria’s crude blends are generally traded at a discount or premium to Brent crude price, depending on:

  • Global demand for light sweet crude.
  • Supply disruptions in Nigeria ( pipeline vandalism, oil theft, militant attacks, force majeure).
  • Freight costs to key markets (Asia, US, and Europe).

Factors

Impact on Nigeria’s Crude Price 

Strong Demand (Europe/US/Asia): Summer driving season & strong economic growth

Weak Demand: Refinery maintenance in Europe/Asia & global recession fears.


Strong Demand → Higher premium

Weaker Demand → Discounts

Supply Disruptions: (Pipeline Attacks, Theft, Forcados)

Discount

Alternative supplies: (US shale oil or Russian Urals competing in Europe)

Excess US supplies → Discounts

OPEC+ Policy & Quota Compliance

Excess Supply: If OPEC+ increases production, Nigerian crude may sell cheaper.

Production cuts: If OPEC+ cuts production, Nigerian crude may sell at premium if demand is strong.

Excess supply → Discounts

Lower cuts → Higher premium

Geopolitical Tensions

Geopolitical tensions, such as the Russia-Ukraine War and Yemen Houthi attacks on commercial ships along the Red Sea tend to disrupt supply chains, leading to higher prices.

Geopolitical Tensions → Supply disruptions → Higher premium


US Dollar Strength & Federal Reserve Policy (Oil is priced in US Dollar)

Higher US interest rates: Leads to stronger dollar which oil more expensive for importers.

Fed rate cuts: Weaken the US Dollar boosting oil demand.


Higher rates → Stronger US Dollar → Higher crude prices → Lower demand → Discount


Lower rates → Weaker US Dollar → lower crude prices → higher demand → Premium

Where to Buy Nigeria Crude Oil

Along with Egypt, Algeria, and Libya, Nigeria is among Africa’s largest crude oil producers. The country generally produces light, sweet crude oil (Forcados, Qua Iboe, Escravos Light, and Bonny Light), which is highly demanded by global markets. To purchase Nigerian crude oil, there are several ways to do so:

  • Direct Purchase from the Nigerian National Petroleum Company Limited (NNPC Limited): The NNPC is the state-owned oil company responsible for Nigeria’s oil & gas resources through a joint venture or Production Sharing Contract with oil producers. NNPC Limited sells its equity crude oil through term contracts and spot sales. However, Buyers must meet strict operational and financial requirements. Some of these conditions include proof of funds and a stable track record in oil trading.
  • International Oil Trading Companies: Many global international oil companies and commodity traders buy and resell Nigerian crude.
    • Commodity Traders: Vitol, Trafigura, Glencore, Gunvor, and Mercuria,
    • International Oil Companies: Shell, Chevron, TotalEnergies, etc.
  • Nigerian Oil & Gas Trading Companies: Some Nigerian-based oil companies, including Oando PLC and Aiteo Group, trade crude oil as intermediaries.
  • Government-to-Government (G2G) Deals: Some countries, like India, purchase Nigerian crude directly through government-backed deals.
Continue Reading
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