Brent crude oil prices climbed to $110 per barrel on Friday for the first time since May, as renewed tensions in the Middle East heightened concerns about possible disruptions to global oil supplies.
The international benchmark later closed at $109.86 per barrel, representing a 3.7 per cent increase and its highest closing level since 19 May, according to Reuters.
US West Texas Intermediate (WTI) crude also advanced by 3.5 per cent to settle at $101.41 per barrel, marking its highest level since 17 September.
The rally followed reports of potential attacks on Saudi energy infrastructure and increasing disruption to oil shipments through the Strait of Hormuz.
Energy Aspects, an energy consultancy, said oil prices had recovered after earlier losses amid circulating reports of possible attacks on Saudi energy facilities.
“Israeli reports suggest Iran may be preparing a pre-emptive strike following unusual military movements detected by Western intelligence. Although unverified, these developments reinforce our view that persistent escalation risks will keep flat prices supported,” Energy Aspects said.
Reuters also reported that a Saudi-led coalition had intercepted and destroyed a ballistic missile launched towards Yanbu, a Red Sea port that enables Saudi Arabia to export oil without routing shipments through the Strait of Hormuz.
Rising crude prices affect Nigeria’s petrol market
The increase in global crude oil prices has also contributed to rising petrol prices in Nigeria.
On 8 October, the Federal Government announced a 30-day petrol discount at Nigerian National Petroleum Company (NNPC) filling stations, alongside plans to cap petrol landing costs at ₦1,350 per litre in an effort to stabilise prices.