Oil prices rebound as Nigeria’s Bonny Light holds firm

From Adanna Nnamani, Abuja

Nigerian crude oil prices surged back into positive territory on Monday, with Bonny Light stabilising at $67 per barrel.

This signals renewed confidence in the global energy market after a dramatic crash last Friday.

The rebound comes as global oil markets staged a sharp recovery during Monday’s trading session. Brent crude rose to $63.76, while West Texas Intermediate (WTI) climbed 2 per cent to $59.92, following a steep 4 per cent drop that had dragged prices to their lowest levels since May.

The sudden uptick is being driven by hopes of a possible diplomatic breakthrough between the United States and China, even as both nations exchange threats. U.S. President, Donald Trump, stirred both optimism and confusion at the weekend with mixed messages. On his social platform, Truth Social, Trump claimed the U.S. wants to help China, not hurt it, adding that the Chinese economy will be fine. However, he later threatened to impose 100 per cent tariffs on all Chinese imports and dismissed the need to meet President Xi Jinping at the upcoming APEC summit in South Korea.

China fired back, warning of retaliation if the tariffs go ahead. The standoff comes on the heels of China’s recent move to tighten rare earth exports, widely seen as a counter to U.S. trade restrictions on critical software and tech components.

Despite the escalating tensions, oil traders are showing renewed interest in the market. Analysts say the sell-off last week was excessive, and crude is now experiencing a wave of bargain buying. Investment bank, Goldman Sachs noted that both Washington and Beijing are likely to back away from their most extreme positions as the APEC summit draws near, predicting that the trade threats may be more about negotiation tactics than actual policy shifts.

The Organisation of Petroleum Exporting Countries and its allies (OPEC+) have also helped calm the market by sticking to a cautious production strategy. The group has been gradually easing its voluntary cuts without flooding the market, helping to prevent oversupply.

Back home, Nigeria’s oil sector received a major boost with the launch of the country’s first fully owned Floating Storage and Offloading (FSO) vessel. The massive facility, stationed near the Bonny export terminal in the Eastern Niger Delta, has a capacity of 2.2 million barrels and is expected to streamline crude exports from Oil Mining Lease 18 and surrounding assets. The FSO is also seen as a strategic move to reduce pipeline dependence and curb oil theft and vandalism, long-time threats to Nigeria’s oil output.

Also contributing to market calm is a surprising turn of events in the Middle East. President Trump announced on Sunday that the war in Gaza is “over,” ahead of his speech to Israel’s parliament. The U.S.-brokered ceasefire, now in its fourth day, has paved the way for hostage and prisoner exchanges, easing fears of further disruptions in oil supply from the region.

While prices have bounced back for now, market watchers remain cautious. The fragile recovery could easily be undone by further escalation in global trade disputes or unexpected shifts in supply and demand.