By Adedapo Adesanya

Crude oil was down by almost 3 per cent on Thursday in choppy trading, after the US and Iran agreed to hold talks in Oman on Friday.

Brent crude futures depleted by $1.91 or 2.75 per cent to trade at $67.55 per barrel, and the US West Texas Intermediate (WTI) crude futures slumped by $1.85 or 2.84 per cent to $63.29 per barrel.

The US and Iran are set to hold nuclear talks in Oman today after President Donald Trump warned the country’s supreme leader should be “very worried.”

The high-stakes talks are scheduled to take place on Friday in the Omani capital, Muscat, and will involve Iranian Foreign Minister Abbas Araghchi and President Trump’s special envoy, Mr Steve Witkoff.

Tensions between the two countries have escalated sharply in recent weeks following a deadly crackdown by Iranian security forces on nationwide anti-government protesters. The crackdown prompted Trump to send a US military “armada” to the region and threaten to launch strikes.

Now, market analysts noted that the talks are being given the benefit of the doubt, but noted scepticism that any reasonable deal could be made with Iran.

The discussions come as the US builds up forces in the Middle East, and regional players seek to avoid a military confrontation that many fear could escalate into a wider war and impact the Strait of Hormuz.

About a fifth of the world’s total oil consumption passes through the Strait of Hormuz between Oman and Iran. Other OPEC members, Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, export most of their crude via the strait, as does Iran.

Strength in the US Dollar and volatility in precious metals also weighed on commodities and risk sentiment more broadly on Thursday. The greenback getting stronger makes oil expensive for holders of other currencies.

On the supply side, discounts on Russian oil exports to China widened to new records this week as sellers cut prices to attract demand from the world’s top crude importer and offset the likely loss of Indian sales. This week, a trade deal was announced between the US and India, which agreed to halt purchases of Russian crude.

By Adedapo Adesanya

The chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Saidu Mohammed, has revealed that bold economic reforms by President Bola Tinubu’s administration saved the country over N6 trillion on petroleum product imports in just the first nine months of 2025.

Mr Mohammed disclosed this while speaking at the Nigeria International Energy Summit (NIES) in Abuja, said the savings were the result of full downstream deregulation, harmonisation of the forex market, and the trading of crude and petroleum products in Naira.

He added that these bold moves have created stability in the downstream petroleum market, encouraged investment, and ensured a sufficient supply of petroleum products across the country.

The NMDPRA boss also revealed that the nation’s refining capacity is expected to surpass 1 million barrels per stream day (bpsd) in the medium term.

He said the surge in domestic refining capacity is being driven by a combination of new refinery investments, the rehabilitation of existing Nigerian National Petroleum Company (NNPC) Limited refineries, and strategic private-sector participation.

According to him, the planned investments in other refineries, along with issued Licences to Establish (LTEs) for new facilities, will continue to expand Nigeria’s refining footprint, reducing dependence on imported products and stabilising domestic supply.

He said: “For decades, our downstream value chain has been associated with negative sectoral performance indicators such as infrastructural deficit, weak market structures, sub-optimal supply chain efficiency, inadequate investment, poor regulatory compliance, and unacceptable operational safety and environmental indices.

“Today, I am pleased to affirm that this narrative is rapidly changing and that the sector is truly witnessing the early but irreversible signs of a renaissance-type transformation that is driven by bold reform; enabled by investment; and sustained by effective market and operational regulatory enablement.

“In the few years of the operationalisation of the new legal framework of the Oil and Gas sector in Nigeria (PIA 2021), Nigeria’s downstream sector has evolved into a fully liberalised market and is no longer defined by scarcity and supply uncertainty.

Supply stability has consistently ensured sufficiency of all Petroleum products. The pricing structure of the downstream sector is becoming more driven by the fundamentals of the market and generally attaining the stability level required for encouraging investment in this expansive sector of the economy.

“The supply chain landscape of the sector, which depended significantly on import of nearly all Petroleum Products for a long time, is rapidly transforming with growing supply through the nation’s domestic refining capacity, expanding gas-based alternative fuels, improved logistics, and increased private-sector participation.

“At the heart of this transformation stands the Dangote Petroleum Refinery, the largest single-train refinery in the world with an installed capacity of 650,000 barrels per stream day (bpsd), which is currently contributing a significant portion and in some cases 100 per cent of our domestic requirement of Petroleum Products. The optimal operationalisation of the plant’s installed capacity and future upscaling of the plant is undoubtedly needed to fulfil the national aspirations of making Nigeria a regional and continental energy hub.

“The capacity for enhanced domestic supply of Petroleum product in Nigeria will continue to grow as the planned investments in our refinery sector mature. We are optimistic that the issued Licences to Establish (LTEs) refineries, which are being progressed through various levels of completion, coupled with the rehabilitation of the NNPCL refineries, will improve the overall installed refining capacity in Nigeria to well over 1 million bpsd in the medium term.

“The bold economic reforms of President Bola Tinubu have created the renaissance that the downstream sector is enjoying and would continue to leverage upon for sustained sectoral growth in the future. The cumulative impact of the full deregulation of the downstream sector, the harmonisation of the forex market, the incentivization and deepening the use of gas and the trading of crude and product in Naira has reduced the fiscal economic losses of importing Petroleum Product by over N6 trillion in the 1st nine months of 2025.”

By Adedapo Adesanya

The federal government says Nigeria is targeting gas production of 10 billion standard cubic feet per day (bscfd) by 2030, positioning natural gas as a cornerstone of national energy security and economic prosperity.

The Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, said this while delivering a ministerial address at the ninth Nigeria International Energy Summit (NIES) 2026 in Abuja.

The Minister said the government’s efforts were yielding tangible results, with Nigeria’s gas production maintaining an upward trajectory in 2025, averaging between 7.5 and 7.6bscfd.

He disclosed that domestic gas supply exceeded two bscfd for the first time, marking a historic milestone for power generation, industrial use and household consumption.

The Minister also said significant progress in environmental performance, with gas flaring reduced to some of the lowest levels recorded in recent years, in line with Nigeria’s commitment to end routine gas flaring by 2030.

He noted that investor confidence in the gas sector had been strengthened, citing Final Investment Decisions (FIDs) in key upstream gas projects supported by improved regulatory clarity under the Petroleum Industry Act (PIA).

“Across the midstream and downstream segments, pipeline infrastructure, processing facilities and gas-to-power projects have expanded, improving connectivity, boosting domestic utilisation and supporting cleaner cooking solutions, job creation and industrial stability.

“Under President Bola Tinubu’s Renewed Hope Agenda, government policy prioritises the expansion of domestic gas infrastructure while strengthening Nigeria’s presence in regional and global gas markets.

“This includes facilitating investments in gas processing, storage and distribution, as well as accelerating gas-to-power projects aimed at addressing energy poverty and enhancing industrial competitiveness,” he said.

The minister emphasised that Nigeria’s energy future was inseparable from peace, partnership and shared responsibility, calling on governments, investors, development partners, host communities and civil society to move from dialogue to decisive action.

“Our collective task is to build an energy system that powers prosperity, strengthens stability and supports regional integration,” he said.

He said Nigeria’s energy strategy is firmly aligned with global energy transition realities while responding to Africa’s unique development challenges, including widespread energy poverty, limited industrial capacity and inadequate access to reliable power.

“While the world moves towards lower-carbon systems, Africa must pursue a transition that is not only green, but also just, inclusive and development-driven.

“Nigeria is leveraging its abundant natural gas resources to balance climate responsibility with economic development, positioning gas as the backbone of industrial growth, job creation and expanded energy access,” he said.