Nigeria’s benchmark crude grade, Bonny Light, has steadied after the steepest downturn in the international oil market in almost three weeks. The decline had been driven by mounting concerns about global oversupply, which has unsettled traders since late November.
Bonny Light last changed hands at 65.77 dollars per barrel. This places it about two percent below its late-November peak when it hovered between 66 and 67 dollars. Average prices for the month now stand at roughly 65.5 dollars per barrel, a notable drop from the 70.20 dollars recorded in September 2025. The current level remains far short of Nigeria’s 2025 budget benchmark of 75 dollars per barrel, deepening pressure on government revenues and widening the fiscal gap.
International benchmarks have followed similar patterns. Brent crude traded slightly above 62 dollars per barrel after losing two percent on Monday. West Texas Intermediate settled near 59 dollars. Market attention is now shifting to a series of outlook reports due this week. The International Energy Agency and OPEC are expected to release updates on supply and demand, while the United States Energy Information Administration will issue its Short-Term Energy Outlook on Tuesday.
Early indications from the IEA suggest a possible record surplus next year. This has reinforced the cautious mood among traders who are weighing the combined influence of Russian sanctions, potential export controls, and the narrow four-dollar price band that has held since early November. Investors will be studying the forthcoming reports for signs that expectations might shift, either towards tighter supply or a prolonged period of muted prices.
