By Adedapo Adesanya

The oil market fell sharply on Wednesday on optimism that the US and Iran were close to an agreement to end the conflict that has caused the largest energy supply disruption in history.

Brent crude futures tumbled nearly 8 per cent to close at $101.27 per barrel, while the US West Texas Intermediate (WTI) crude futures lost about 7 per cent to trade at $95.08.

Reuters reported that Pakistan said the United States and Iran were closing in on an agreement on a one-page memorandum ​of understanding.

Iran said on Wednesday it was reviewing a new US proposal and would convey its response soon via Pakistan. The country had said earlier that it would only accept ⁠a fair and comprehensive agreement.

US media outlet Axios reported that America expects Iranian responses on several key points in the next 48 hours, ​citing sources that said this was the closest the parties had agreed since the war began.

However, President Donald Trump on Wednesday expressed doubt that a deal would be finalised. He said it was “perhaps a big assumption” to think that Iran would accept the proposal. He threatened to resume military strikes on Iran if it did not agree.

Equally, a senior Iranian parliament member said the US proposal was more of a wish list than a reality.

Earlier this week, the ​US military said that it destroyed several Iranian small boats as part of efforts to help stranded ships exit the Strait of Hormuz, a waterway responsible for 20 per cent of crude and Liquified Natural Gas (LNG) flows. Market analysts noted that the global oil flow would take time to normalise even if the strait is restored.

The Strait of Hormuz closure has resulted in a drawdown in global oil and fuel inventories as refineries try to offset production shortfalls. Surging oil and energy costs are already creating demand destruction globally.

The US Energy Information Administration (EIA) said on Wednesday that US crude and fuel inventories continued to draw down last week as countries around the globe scrambled to fill supply gaps caused by disruptions from the conflict in the Middle ⁠East. Crude oil stocks ​fell by 2.3 million barrels to 457.2 million barrels last week.

By Modupe Gbadeyanka

The management of Dangote Petroleum Refinery and Petrochemicals Limited has revealed that the price of Premium Motor Spirit (PMS) remains at N1,275 per litre.

Earlier on Wednesday, there were reports that the company increased its ex‑depot price by N75, some hours after renewed hostilities in the Middle East.

On Monday evening, it was reported that Iran fired missiles at its neighbours in the Gulf region after the United States seized two Iranian-linked vessels on the Strait of Hormuz.

These actions briefly raised the price of crude oil on the global market to over $115 per barrel, but it quickly eased to almost $100 per barrel on Wednesday.

Shortly after it was reported that Dangote Refinery had pushed its PMS gantry price to N1,350 per litre, the price was reversed.

Confirming this in a statement made available to Business Post, Dangote Refinery said it is sustaining its current prices to reaffirm “its commitment to supporting stability in the domestic energy market and cushioning the wider economy against external shocks.”

“By absorbing prevailing cost pressures, the refinery continues to help moderate inflationary risks, promote energy affordability, and ensure uninterrupted supply amid ongoing global uncertainties,” another part of the statement read.

The private refiner “reaffirmed its dedication to the steady supply of high‑quality petroleum products to the Nigerian market, while supporting national objectives of price stability and energy security.”

It urged the public “to rely solely on official statements from Dangote Petroleum Refinery and Petrochemicals Limited for accurate and up‑to‑date information on its operations and pricing.”

By Aduragbemi Omiyale

Dangote Refinery has reversed a N75 ex-depot price increase of premium motor spirit (PMS), also known as petrol, on Wednesday.

On Wednesday, the private crude oil refinery raised the price of the product to N1,350 per litre, but this was quickly reversed to N1,275 per litre.

The company had carried out a second increment in less than two weeks, amid renewed attacks in the Middle East, though the crude oil price went down on Tuesday to $109 per barrel.

According to a report by pricing platform Petroleumprice.ng, the upward price adjustment was suspended shortly after it was raised, restoring the previous pricing structure at the loading gantry and easing immediate concerns among downstream marketers.

Industry operators say the move has helped calm nerves across the market, where traders had already begun repositioning on expectations of a higher pricing cycle.

Before the previous price hike, the gantry price was N1,200 per litre, but the organisation pushed it higher by N75.

As of the time of filing this report, Business Post observed that Brent crude futures were traded at $101.00 per barrel, while the US West Texas Intermediate (WTI) crude futures were sold for $93.01 per barrel.