The price of Nigeria’s Bonny Light rose to $67 per barrel from $65 per barrel in the global market following Israel’s surprise attack on Qatar over Hamas on Tuesday.

Reports of the Israeli strike on Hamas targets in Qatar, a major oil and gas-producing nation and former OPEC member, sparked wild speculation, leading to a general rise in oil prices.

Similarly, Brent crude, used to benchmark other crude prices, traded at $66.58 per barrel, showing an increase of over $1.0 from the pre-attack record of $65.

Despite the price jump, oil prices remained below the $75 per barrel benchmark of Nigeria’s 2025 budget, which is based on 2.06 million barrels per day and an exchange rate of N1,500/$.

Expectations were high that the global market would continue to respond to the attack and other international market developments.
Recently, OPEC+ announced an easing of its production cuts, raising hopes of increased supplies and prices potentially falling below $60 per barrel.

According to OPEC+, rolling back production cuts would return 137,000 barrels per day to the market in October 2025.

Mazi Colman Obasi, National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), said, “Relaxing oil cuts at this time means increasing supply, which is expected to culminate in pumping additional supplies to the market, thus causing prices to drop below $60 per barrel.”

Another analyst noted that easing oil cuts would increase supplies and reduce prices, potentially impacting Nigeria’s 2025 budget implementation, which is based on 2.06 million barrels per day, $75 per barrel, and N500/$ exchange rate.

OPEC+ stated that the production adjustment of 137,000 barrels per day would be implemented in October 2025, with flexibility to pause or reverse the decision based on evolving market conditions.