Crude oil prices continued their upward trajectory yesterday, with Brent crude trading at $67.37 per barrel, up 0.07 per cent from the previous close of $67.32.
Similarly, West Texas Intermediate (WTI) edged higher to $63.71 from $63.66, reflecting a 0.08 per cent increase. Market analysts attributed the gains to a mix of supply disruptions, geopolitical risks, and investor optimism around potential U.S. monetary policy adjustments.
The recent surge in oil prices is part of a broader trend that began earlier this month. Between August 19 and August 23, 2025, crude oil markets saw significant volatility as traders reacted to shifting global demand expectations and supply uncertainties.
On August 19, WTI opened at $62.53, while Brent started at $65.87. By August 20, WTI rose to $63.00 and Brent to $66.70, marking gains of 1.04 per cent and 1.38 per cent, respectively.
Midweek trades continued to favor gains, with Brent reaching $67.54 and WTI at $63.42, though end-of-week trading saw minor pullbacks amid caution over macroeconomic indicators.
Yesterday’s rise was strongly influenced by geopolitical developments in Eastern Europe. Ukrainian drone attacks on Russian energy infrastructure, particularly at the Kursk Nuclear Power Plant, triggered a partial shutdown and a 50 per cent reduction in output at one of the plant’s reactors.
The facility, one of Russia’s largest, provides electricity to 19 regions in the Central Federal District.
Additionally, the Ust-Luga terminal, a key logistics hub for Russia’s energy exports in the Baltic Sea, suffered damage after Ukrainian drones were downed over the port. These events have fueled concerns over potential disruptions in global energy supply.
Experts say that such supply shocks, especially in major energy-exporting nations like Russia, tend to support crude prices due to fears of tighter market availability.
Market sentiment was further influenced by political developments. Former U.S. President Donald Trump indicated ongoing efforts to mediate the Russia-Ukraine conflict, hinting at possible sanctions that could affect Moscow’s energy exports.
Meanwhile, comments from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Policy Symposium reinforced expectations of a possible interest rate cut in September.
Lower rates typically stimulate economic activity and increase oil demand, adding upward pressure to prices.
Oil market analysts highlight that the current environment reflects a complex interplay of supply-side constraints, geopolitical uncertainty, and macroeconomic policy expectations.
“Crude oil remains highly sensitive to developments in Eastern Europe and the broader global economic outlook.
Any disruption in supply or shifts in U.S. policy can cause immediate market reactions,” said a Lagos-based oil market analyst.
Despite the recent gains, market watchers remain cautious. Factors such as ongoing inflationary pressures, fluctuating demand, and potential geopolitical escalations could create volatility in the near term.
For Nigeria, as one of Africa’s leading oil producers, these price movements hold significant implications for government revenue, foreign exchange inflows, and fiscal planning.
Analysts note that sustained price levels above $65 per barrel could provide the Nigerian economy with a critical buffer to support budgetary needs and energy sector investments.
As global markets navigate these uncertain times, investors and policymakers are keeping a close eye on both geopolitical developments and central bank policies.
The oil market, characterized by a delicate balance between supply disruptions and demand expectations, continues to offer both challenges and opportunities for energy stakeholders worldwide.