Global oil prices retreated from multi-month highs as investors scaled back risk positions following easing geopolitical concerns in the Middle East.
Brent crude oil, against which Nigerian oil is priced, fell 3.4 percent to $64.25 per barrel, while West Texas Intermediate declined 3.4 percent to $59.89 per barrel after both benchmarks surged sharply in the previous session on heightened geopolitical risk premiums.
The pullback followed comments from Donald Trump that helped calm market anxiety over the prospect of near-term military escalation involving Iran. With immediate fears receding, traders moved to take profits, reversing part of the earlier rally.
Oil prices had climbed to session highs of $66.82 for Brent and $62.36 for WTI before retreating, underscoring the market’s sensitivity to geopolitical headlines.
Analysts said the decline reflects a reassessment of short-term supply disruption risks rather than a shift in underlying demand or supply fundamentals.
Despite the retreat, market participants note that crude prices remain supported by ongoing geopolitical uncertainty, disciplined supply management by major producers, and steady global demand.
As a result, oil markets are expected to remain volatile, with prices reacting swiftly to political developments and macroeconomic signals.
The easing in oil prices also contributed to a broader moderation in safe-haven demand across global markets, as investors rotated away from defensive positions amid improved risk sentiment.
