The price of crude oil has risen to over $100 per barrel from $90 in the global market, following the collapse of talks between the United States and Iran over the weekend.
Crude oil prices had dropped to $90 per barrel from $100 last week, as market watchers anticipated that the talks would culminate in an agreement in Islamabad, Pakistan’s capital.
The United States Vice President, JD Vance, said Tehran refused to accept Washington’s terms during the negotiations, stating: “The bad news is that we have not reached an agreement, and I think that’s bad news for Iran much more than it’s bad news for the United States of America.
“We need to see an affirmative commitment that they will not seek a nuclear weapon, and that they will not pursue the tools that would enable them to quickly achieve a nuclear weapon.”
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However, in an interview with Vanguard, the Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said: “From all indications, the price of crude will continue to rise in the coming weeks because of tensions, speculation, and uncertainties in the market. The market will be driven by heightened conflict and instability.
“The impact will not be limited to the upstream segment; it will spill over into the downstream, leading to higher prices of petroleum products, especially Premium Motor Spirit (PMS), also known as petrol. Such increases will also affect transportation costs, as well as the prices of goods and services.”
Similarly, the National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, said: “The expected surge in energy costs will impact our domestic economy, but it may not be as severe as it could have been due to the operations of the 650,000 barrels-per-day Dangote Petroleum Refinery.”