Brent crude rose to $115 a barrel on Wednesday, while West Texas Intermediate (WTI) increased to $103 a barrel, marking a daily gain of more than 3 percent for both benchmarks, according to data compiled by DAILY POST.
The $115 level is the highest Brent price recorded since 2022. The jump follows the United Arab Emirates’ announcement that it will leave the Organization of the Petroleum Exporting Countries (OPEC), a shift that reduces the cartel’s production‑cut coordination and adds uncertainty to global supply. The move comes amid the ongoing conflict in the Middle East, which has already pressured oil markets for more than two months.
Analysts note that the UAE’s exit from OPEC could tighten the market if the emirate redirects its output to the open market rather than adhering to OPEC‑mandated quotas. With several major producers already operating near capacity, any reduction in coordinated output is likely to reinforce the upward price trajectory that began earlier this year.
In Nigeria, the increase in international crude prices has prompted concerns about domestic fuel costs. As of Wednesday morning, petrol prices in Abuja remained within the range of N1,290 to N1,310 per litre, a level that regulators hope to maintain despite the external price pressure. However, the recent surge in Brent and WTI suggests that the current stability may be short‑lived, and officials are expected to monitor the situation closely.
The broader energy market has been reacting to a combination of supply constraints and geopolitical risk. Global oil inventories have been declining, while demand recovery in Asia and Europe continues to outpace supply growth. The potential for further price appreciation is heightened by the limited slack in spare production capacity among leading exporters.
For consumers and businesses worldwide, higher crude prices translate into increased costs for transportation, manufacturing and heating. Countries that import a significant share of their oil, such as Nigeria, may face balance‑of‑payments pressures if the trend persists. Policy makers in oil‑dependent economies are likely to consider measures to mitigate the impact on retail fuel prices, including subsidies or tax adjustments.
The next several weeks will be crucial for assessing whether the UAE’s departure from OPEC will lead to a sustained realignment of global oil supply, or if the market will stabilize as producers adjust output to meet demand. Stakeholders are advised to watch forthcoming OPEC+ meetings and any further announcements from major oil‑producing nations for clues on the future direction of crude prices.
