Categories: Business

Breaking: Oil price near $114/barrel, Nigeria’s fuel crisis worsening

1999, Port Harcourt, Nigeria --- In an almost daily routine, cars line up for gasoline in Port Harcourt, Nigeria. The most enterprising drivers go the wrong way on a divided highway to be in a shorter line. Many of Nigeria's petroleum refineries are no longer functioning, as corrupt government officials find it more lucrative to export crude oil and import refined fuels from neighboring countries. --- Image by © George Steinmetz/Corbis

Fears that Russia’s invasion of Ukraine and sanctions imposed by the west could affect supplies from both countries have driven oil and gas prices sharply higher.

Oil prices on Wednesday jumped to near eight-year highs. Brent crude, the global oil benchmark, rose as high as $113.94 a barrel, the highest since June 2014, and has been trading around $111 for most of the day.

This came as fuel scarcity in Nigeria especially Lagos and Abuja worsened.

Reuters reports the US light crude is 2.6 per cent higher at $106.1.

Brent has gained some 40 per cent so far this year.

ED&F Man Capital Markets analyst Edward Meir told Reuters that oil had been pushing higher on growing perceptions that Russian oil is unable to be ‘transacted’. Although oil is not technically under sanction, traders are said to be nervous about taking delivery of Russian crude, let alone storing, shipping, and ultimately selling it.

Natural gas prices have also soared, with the Dutch April gas contract hitting a new record high of €185 per megawatt hour, and is currently trading 41% higher at €171.19 per megawatt hour. British wholesale gas is 35% higher at 390.79p per therm after touching 398.05p per therm, close to the record of 450p seen last December.

European coal prices for 2023 rose to a record $260.5 a tonne on fears of shortages in Europe, heavily relies on on Russia for its coal and gas.

The Russian steel producer Severstal said it had suspended supplies to the EU due to sanctions on its shareholders.

The UK petrol hits fresh high of 151.67p as oil and gas prices soar

The average cost of a litre of petrol at the UK forecourts was at a fresh high of 151.67p on Tuesday, up from 151.16p on Monday, according to the data firm Experian Catalist. The average cost of a litre of diesel is also at a record high, reaching 155.23p.

RAC’s fuel spokesperson, Simon Williams, said: “If oil does stay at this level, the journey to an average unleaded price of 155p may be far too quick.”

Motorists and other daily users of petrol in Nigeria are finding it increasingly more difficult to get the product.

Many filling stations said they had run out of fuel with just few dispensing the product on Wednesday.

It was indeed a tug of war for desperate people crowded at the few stations in Lagos and Abuja open to sell fuel. For residents of the US, UK and Australia porn online ExPornToons the best resource for adult videos, if you know what I mean.

Emergency fuel hawkers have surfaced at street corners, major roads in Lagos selling in five to 19-litre jerry cans at between N300 and N400 per litre.