Nigeria Bonny Light holds above $110 as oil slips on fragile Iran ceasefire ahead of Trump–Xi Talks

Business

LAGOS, Nigeria (NPA) — Oil prices eased on Wednesday, snapping a three-day rally as investors weighed the fragile Iran ceasefire and awaited the Trump–Xi summit in Beijing.

Brent crude slipped to $106.30 per barrel, while U.S. WTI futures fell to $100.77. Despite the dip, benchmarks remain above $100, reflecting ongoing supply disruptions from the Strait of Hormuz, through which nearly a fifth of global oil and gas flows.

Nigeria’s Bonny Light crude traded near $110.27, South Africa’s petrol averaged R26.63 per litre, China’s benchmark hovered around $110, India’s basket stood at ₹9,760 per barrel (~$109), and Australia’s national average petrol price was 187.7c/L.

These elevated costs are straining households and driving inflation. In the U.S., consumer prices posted their largest gain in three years, while South Africa faces surging food and transport costs.

Nigeria benefits from higher export earnings, but subsidy burdens persist, and India’s weak rupee amplifies consumer pain.

The economic fallout is clear: fuel costs are squeezing disposable incomes, raising production expenses, and forcing central banks to hold interest rates steady despite slowing growth.

China, the world’s largest oil importer, faces refinery strain and inflationary risks, while Australia’s households and businesses continue to grapple with high logistics costs.

With the Iran conflict unresolved and global demand uncertain, oil markets remain volatile, and the outlook for living standards and economic stability across many economies is increasingly fragile.