Again, Dangote Refinery Slashes Fuel Price As Oil Rate Drop To $72 Per Barrel
The Dangote Refinery has reduced the ex-depot price of petrol by ₦50 per litre, adjusting it from ₦1,175 to ₦1,125 per litre.
The refinery attributed the reduction in petrol prices to the easing of tensions in the Middle East, which has led to a decrease in global energy prices.
A notice to customers indicated that the gantry loading price has been reduced from ₦1,175 per liter to ₦1,125 per liter, while the coastal supply price has decreased from ₦1,495,215 per metric ton to ₦1,428,165 per metric ton.
AttNews reports that oil prices dropped to $72 per barrel on Thursday from about $120 per barrel, their lowest level since the US-Iran conflict began in February.
Brent crude futures for August delivery fell $1.06, or 1.44%, to $72.68 a barrel by 0639 GMT, while U.S. West Texas Intermediate lost 76 cents, or 1.08%, to $69.58 a barrel.
According to Oilprice.com, crude oil had fallen from $76.75 per barrel on Tuesday to $73.50 on Wednesday, after surging during the conflict as tensions threatened shipping through the Strait of Hormuz.
Rising Middle Eastern supply, together with Iran set to boost sales after a reprieve from U.S. sanctions, drove down prices of physical crude oil cargoes around the world.
Traders grew optimistic that the US-Iran agreement would help keep the strategic waterway open, alongside reports of a slight increase in shipping traffic.
An initial accord last week to end the U.S.-Israeli war with Iran, which began on February 28, has allowed the resumption of traffic through the strait.
The accord set up 60 days of negotiations to tackle tougher issues, such as Iran’s nuclear programme. Wright said oil would continue to flow through the strait even if the deal did not hold, and that Iran would not be able to close it again.
Oman opened temporary routes on Wednesday to ease tanker departures from the strait, with the International Maritime Organization and Omani authorities coordinating movements.
According to CNN, traders are still monitoring whether traffic continues to flow smoothly through the strait and whether tensions remain contained across the Middle East.
On Tuesday, President of the United States, Donald Trump, said a record 19 million barrels of oil flowed out of the Strait of Hormuz on Monday. According to Trump, oil prices are tumbling as a result of the oil flow through Hormuz.
“19 million barrels of oil flowed out of the Hormuz Strait yesterday, an all-time record. Oil prices are tumbling down, and the world is a much safer place,” Trump said in a post on his social media handles.
