Oil Market Mixed as Brent Climbs Above $72, OPEC Basket Falls 3.6%
By Eyo Nsima
Global oil prices traded mixed on Friday, with benchmark crude grades posting modest gains, while the OPEC Reference Basket recorded a sharp decline, reflecting continued volatility in the international energy market.
Market data showed that Brent crude, the global benchmark, rose by 32 cents, or 0.45 per cent, to $72.12 per barrel, extending gains amid expectations of resilient summer fuel demand and improving consumption across major economies.
Similarly, West Texas Intermediate (WTI), the United States benchmark, gained 9 cents, or 0.13 per cent, to trade at $68.78 per barrel.
The gains in Brent and WTI came despite concerns over rising global crude supplies and uncertainty surrounding the pace of economic growth in key oil-consuming nations.
Murban records strongest gain
Among the major crude benchmarks, Murban crude, produced in the United Arab Emirates, posted the strongest performance.
The grade climbed $1.26, or 1.93 per cent, to $66.48 per barrel, reflecting healthy demand for medium-sour crude in Asian refining markets.
Likewise, WTI Midland, another key export crude from the United States, increased by 20 cents, or 0.29 per cent, to $68.87 per barrel.
OPEC basket drops sharply
In contrast to the gains recorded by Brent and WTI, the OPEC Reference Basket suffered one of the day’s biggest declines.
The basket fell by $2.89, or 3.60 per cent, to $77.37 per barrel.
The decline suggests price adjustments across several crude grades produced by members of the Organization of the Petroleum Exporting Countries (OPEC), even as the basket continued to trade at a premium to Brent crude.
The Indian Basket, which represents the average cost of crude imported by India, also declined significantly, shedding $4.57, or 6.07 per cent, to $70.71 per barrel.
Refined products advance
Refined petroleum products recorded broad gains during the trading session.
Gasoline futures rose by 1.23 per cent to $2.953, supported by robust transportation fuel demand and seasonal driving activity.
Heating oil recorded an even stronger increase, advancing 2.34 per cent to $3.257, indicating sustained demand for middle distillates.
The upward movement in refined products could provide support for refining margins if crude prices remain relatively stable.
Natural gas extends gains
The natural gas market also traded higher.
Prices increased by 1.53 per cent to $3.245, reflecting expectations of stronger electricity demand, industrial consumption and ongoing seasonal market adjustments.
Implications for Nigeria
For Nigeria, higher Brent crude prices remain positive for export earnings, foreign exchange inflows and government revenues because the country’s crude grades are generally priced against the Brent benchmark.
However, the sharp decline in the OPEC Reference Basket highlights the continuing volatility in international oil markets and underscores the need for oil-producing countries to diversify revenue sources beyond crude exports.
Analysts say global oil prices will continue to be influenced by OPEC+ production decisions, geopolitical developments, refinery demand, inventory levels in major consuming nations and the pace of global economic growth.
Although Brent remains above the psychologically important $70 per barrel threshold, traders are expected to closely monitor supply-demand fundamentals in the coming weeks as the market searches for clearer direction.
