Nigerian Oil Prices Surge Amid US Sanctions on Russian Producers

Oil prices are experiencing their largest weekly gains since June, driven by US sanctions targeting major Russian oil producers Rosneft and Lukoil, which have disrupted supply and increased demand for alternative crude grades such as Nigeria's Bonny Light. Brent crude has climbed near $66 per barrel, up about 7% for the week, while West Texas Intermediate remains below $62. These sanctions are expected to significantly reduce Russian crude exports to major buyers like India, with some Chinese refiners suspending purchases amid uncertainty, although China's diversified crude sources and stockpiles may mitigate immediate impacts. Russia is leveraging its network of traders and shadow tankers to circumvent sanctions, and the Kremlin anticipates budgetary challenges but aims to soften financial losses. OPEC, led by Kuwait, signals readiness to boost production if necessary to stabilize prices, while geopolitical tensions including EU sanctions and Ukrainian attacks on Russian energy assets add complexity to the market. Despite initial market shocks, analysts suggest the sanctions may not cause severe disruptions due to global supply dynamics and buyers' adaptability, but the situation remains fluid as President Trump plans to discuss China's Russian oil imports during an upcoming meeting with President Xi Jinping.