The price of Bonny Light, Nigeria’s key export grade, fell below $69 a barrel during the second trading session of the week.
The latest quote shows Nigerian top-grade oil traded at $68.8 a barrel.
Oil prices sunk lower on Tuesday as traders evaluated potential supply disruptions after US guidance urged vessels passing through the Strait of Hormuz to focus on tensions between Washington and Tehran.
Bonny Light Crude Oil is a premium light, sweet crude benchmark in global markets and one of Nigeria’s leading grades. Its high refining value often causes it to trade at a premium compared to heavier or sourer crudes.
Brent crude futures dipped 18 cents to $68.85 a barrel, while US West Texas Intermediate crude fell to $64.15 in the second trading session of the week.
Vessels flying the flag are instructed to avoid entering Iranian territorial waters and to politely decline Iranian forces’ requests to board. Any escalation there threatens global oil supplies Since the Strait of Hormuz, located between Oman and Iran, accounts for about 5% of the world’s oil consumption.
Iran and other OPEC members like Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq—export most of their crude through the Strait, mainly to Asia.
