Brent Crude Hits 3-Month Low at $85, Nigerians Hope for Cheaper Petrol
By Aboki Forex —
Brent crude oil prices have dropped to a three-month low of about $85 per barrel. This decline is raising expectations that petrol prices in Nigeria could fall in the coming weeks.
The international benchmark fell on Friday, June 12, 2026. It is now at its lowest level since March. The drop comes as optimism grows over a possible easing of tensions between the United States and Iran.
Oil prices have stayed below $100 per barrel for over two weeks. They surged to about $120 in April when geopolitical tensions were at their peak.
Energy experts say the decline is not only about diplomacy. Increased fuel production by U.S. refineries has boosted global supplies of petrol, diesel and aviation fuel. This has put downward pressure on prices.
Bridget Payne, an energy analyst at Oxford Economics, said consumers may not see immediate changes at the pump. But she expects lower prices within the next month as cheaper crude filters through the market.
Investors are also betting on weaker demand from China. Since the crisis began, China has relied more on its strategic oil reserves. It has reduced imports by an estimated four million barrels per day.
For Nigeria, the impact could be direct. Fuel prices are now more tied to international crude markets after the removal of the petrol subsidy. A sustained drop in oil prices could lower landing costs for imported fuel. It could also reduce pressure on local refiners.
This would offer relief to households and businesses struggling with high transportation and energy costs. But analysts warn that changes at the pump may take several weeks to show.
Another factor supporting lower oil prices is the gradual restoration of crude exports through the Strait of Hormuz. More oil tankers are moving through the region. Some vessels are using alternative protected routes to transport fuel from the Gulf.
Analysts estimate this has restored a portion of disrupted oil flows. If the strait fully reopens and remains stable, oil prices could fall further. However, prices may not return to levels seen before the conflict.
In related news, economist Paul Alaje had earlier warned that Middle East tensions could push petrol prices higher. Nigerians who listened to his interview had mixed reactions in the comments section.