Crude oil prices advanced on Monday as escalating tensions in the Middle East renewed concerns over global energy supply disruptions.
Brent crude, against which Nigerian crude oil is priced, rose to about $93.90 per barrel while U.S. West Texas Intermediate (WTI) crude climbed above $90 per barrel after fresh military exchanges involving the United States, Iran and regional actors heightened fears over oil supply security.
The latest rally comes as investors continue to closely monitor developments surrounding the Strait of Hormuz, one of the world’s most critical oil shipping routes.
Market participants remain concerned that prolonged disruptions could further tighten global crude supplies and sustain upward pressure on energy prices.
Reuters reported that concerns over restricted oil flows through the Strait of Hormuz have intensified after renewed military activity in the region reduced confidence in a near-term resolution of geopolitical tensions.
Analysts have warned that any prolonged disruption could impact global energy markets given the volume of crude exports that typically pass through the route.
The supply concerns have also prompted analysts to revise their oil price outlook higher. A Reuters poll of 33 economists and analysts showed that Brent crude is now expected to average $90.44 per barrel in 2026, up from the previous forecast of $86.38. U.S. crude is projected to average $84.63 per barrel, compared with an earlier estimate of $80.07.
Analysts cited the prolonged timeline required for energy flows to normalize as a key factor behind the upward revisions.
Several market observers believe global supply constraints could persist for months even if geopolitical tensions ease in the near term.
Meanwhile, OPEC+ producers are expected to continue with plans to gradually increase production quotas despite ongoing supply disruptions.
Reuters reported that leading members of the alliance are likely to approve another modest output increase when they meet this month, although actual production growth may remain limited due to logistical constraints and export challenges.
The rising oil prices are adding to inflation concerns globally as higher energy costs threaten to increase transportation and manufacturing expenses across major economies.
Investors are also watching economic data from the United States and China for further clues on demand trends and the broader outlook for commodity markets.
