Oil prices settled lower Friday but posted their fourth consecutive weekly gain, driven by fresh US sanctions targeting Iranian and Venezuelan crude exports.
Brent crude closed at $83.20 per barrel, down 0.8% on the day. West Texas Intermediate fell to $79.45. For the week, both benchmarks rose over 2% as traders priced in tighter global supply.
The US Treasury announced new sanctions on shipping firms and insurers suspected of facilitating movement of sanctioned oil. The measures could reduce global supply by 300,000 to 500,000 barrels per day, according to analysts at Standard Chartered.
African producers stand to benefit. Nigeria’s Bonny Light crude traded at a premium to Brent this week due to stronger demand for non-sanctioned grades. Angola’s Cabinda grade also saw improved pricing. Both countries rely on oil for over 80% of export earnings and have struggled with underinvestment and theft in recent years.
“Nigeria and Angola have spare capacity they can bring online if prices hold above $80,” said an energy analyst in Lagos. However, Nigeria’s production remains below its OPEC quota due to pipeline vandalism and operational issues.
The higher prices pose a challenge for African refineries and importers. Kenya, Uganda, Tanzania, and South Africa import most of their petroleum. A sustained rise to $90 per barrel would increase fuel costs and inflation pressure across the region.
OPEC+ is maintaining production cuts of 2.2 million barrels per day through June 2026. The group has resisted US calls to increase output, citing market stability. The next ministerial meeting is scheduled for late June.
China and India, the largest buyers of discounted Iranian oil, have not indicated they will halt purchases despite US pressure. Their stance will determine how much supply is actually removed from the market.
If sanctions reduce exports by more than 500,000 bpd, Brent could test $90 by June. For African consumers, that means higher pump prices unless governments increase subsidies.
NNAfrica will track OPEC+ statements and African producer responses this week.
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