Oil steady on U.S.-China talks as new Nigerian blend hits market

Crude oil prices held their ground on Monday despite a slight dip, as markets remained buoyed by hopes of progress in ongoing U.S.-China trade negotiations.

Traders closely watched developments in London, where top officials from both economic superpowers met under the newly revived U.S.-China economic and trade consultation mechanism.

Brent crude futures fell modestly to $66.04 per barrel, and U.S. West Texas Intermediate (WTI) slipped by four cents to $64.05 per barrel. However, both benchmarks retained most of last week’s gains, with Brent rising by 4% — its best weekly performance in over a month.

Meanwhile, Nigeria’s premium export grades — Brass River, Bonny Light, and Qua Iboe — ended Friday at $67.30 per barrel, slightly above Brent’s benchmark rate. The pricing reflects stronger demand for light, sweet crude amid geopolitical uncertainties and fluctuating supply-demand dynamics.

In a significant milestone for Nigeria’s energy sector, Green Energy International Limited (GEIL) completed its first crude export from the Otakikpo onshore terminal — the country’s first privately owned and operated crude terminal in over 50 years.

The export occurred on Sunday, June 8, as a Shell-chartered vessel lifted the maiden consignment from the facility in Rivers State.

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Describing the moment as “historic,” GEIL Chairman Prof. Anthony Adegbulugbe credited the achievement to perseverance, regulatory support, and “divine favor.” He praised the dedication of the indigenous technical team and reaffirmed GEIL’s commitment to transforming the energy landscape.

Globally, the oil market continues to wrestle with mixed signals. Prices have stabilized above $60 per barrel, even as OPEC+ members plan to unwind 2.2 million barrels per day in voluntary production cuts.

Eight countries within the alliance are scheduled to increase supply through July at an average pace of 410,000 barrels per month.

The decision has raised concerns of a potential oversupply, especially as global inventories creep upwards. Still, optimism around U.S.-China relations and rising summer fuel demand — particularly for gasoline and distillates — have helped prevent a sharp price decline.

Crude remains down over 10% year-to-date, largely on fears of a global supply glut that has yet to fully materialize.

In a strategic pivot, Nigeria’s Dangote Refinery has sourced nearly one-third of its 2025 crude supply from the United States, notably WTI Midland crude. The refinery is projected to import up to 14 million barrels between June and July, with Vitol Group — one of the world’s largest commodity traders — leading the logistics.

WTI Midland offers higher-quality reformates, making it ideal for gasoline blending — a key factor influencing the refinery’s decision, especially amid shrinking availability of Nigerian light crude.

A Dangote spokesperson confirmed that the shift is part of efforts to ramp up processing capacity and maintain premium fuel output standards.

As the second half of 2025 approaches, the global oil market is balancing investor optimism with caution.

The outcome of U.S.-China trade talks, evolving OPEC+ production strategies, and Nigeria’s emerging private-sector contributions — including the Dangote refinery and GEIL’s Otakikpo terminal — will all play pivotal roles in shaping price trends and energy geopolitics in the months ahead.