Share
Olugbemi. Adeyinka Ogunleye
2 weeks ago
Overview
Israel-Iran conflict: Marketers hike petrol prices as crude oil hits $74pb
The ongoing Israeli-Iran conflict has triggered an upward adjustment in petrol prices by 10 marketers as crude oil rose 8.8 per cent to $74 per barrel from $68 per barrel. Crude prices are expected to rise further should Iran carry out its threat to block the Straight of Hormuz, which is responsible for the shipment of more than 20 per cent of global oil and gas.
According to maritime sources, the threat of Iran to block the Strait of Hormuz would negatively impact global trade. The 10 oil marketers that adjusted depot prices included Aiteo, Pinnacle, Dangote, MENJ, Swift, Rainoil, First Royal, Emadeb, First Fortune and Ever. EMADEB made the highest adjustment to N845 from N827 per litre, indicating an increase of 2.18 per cent while Ever implemented the least adjustment to N870 from N866 per litre, showing a marginal increase of 0.46 per cent.
Also, Aiteo adjusted its depot price to N840 per litre from N835 per litre; Pinnacle adjusted to N845 per litre from N829 per litre while Dangote Petroleum Refinery adjusted to N840 per litre from N830 per litre. MENJ, Swift and Rainoil (Lagos) adjusted prices to N850 from N810 per litre, N845 from N830 per litre and to N850 from N840 per litre, respectively. First Royal and First Fortune also adjusted their depot prices to N838 from N826 per litre and N860 from N850 per litre, respectively.
According to Petroleumprice.ng, the depot prices of petroleum products would continue to rise in the coming weeks, due to instability of the global oil market. There were fears, yesterday, that more attacks and counter attacks could culminate in prolonged instability, capable of impacting the global oil market. According to OPEC, “Apart from petroleum, the country’s (Iran) other natural resources include natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc and sulphur.”
While the United States has called for calm, Iran has vowed a “harsh response,” increasing uncertainty in the market. Projecting on how the crisis will further impact crude oil, global banking giant, JP Morgan puts its base-case oil price forecast for 2025 at more than $60 per barrel, adding that prices could hit between $120 and $130 per barrel in the event of worst-case outcomes such as military conflict and a closure of the Strait of Hormuz.
