Oil prices fell by about $3 on Thursday as investors bet on a possible easing of tensions in the Middle East following hopes of a wider ceasefire deal that could eventually lead to the reopening of the Strait of Hormuz.

According to Reuters, the decline came after Israel and Lebanon said they had agreed to implement a ceasefire, a development that raised expectations of possible diplomatic progress involving Washington and Tehran.

Iran has reportedly made any agreement conditional in part on an end to hostilities between Israel and Hezbollah, the Iran-aligned group in Lebanon.

Brent crude futures dropped by $3.20, or 3.27 per cent, to $94.61 per barrel on Thursday, while the US West Texas Intermediate crude fell $3.71, or 3.86 per cent, to $92.31 per barrel.

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The benchmarks had risen about two per cent on Wednesday after renewed Middle East tensions, including reported Iranian attacks on Kuwait and US military strikes near the Strait of Hormuz.

Reuters reports that in the United States, the Republican-led House of Representatives approved a resolution on Wednesday aimed at blocking former President Donald Trump from continuing military action against Iran. However, the measure would still require Senate approval and a two-thirds majority in both chambers to override a likely veto.

Meanwhile, Russia’s Deputy Prime Minister Alexander Novak said on Thursday that Russian oil production has fallen since the start of the year due to unplanned refinery maintenance, marking the first time a Russian official has acknowledged the decline.

In the United States, crude stockpiles also recorded a sharp draw. Data from the Energy Information Administration showed that inventories fell by 8 million barrels to 433.7 million barrels in the week ended May 29, far above analysts’ expectations of a 4-million-barrel drop in a Reuters poll.

Oil traders said the combination of easing geopolitical fears and shifting supply data continued to drive volatility in global crude markets.

In Nigeria, however, the Nigerian National Petroleum Company Limited recorded an over 70 per cent rise in revenue and profit. The Dangote refinery also benefitted from high fuel exports, but the masses are enduring higher fuel prices, threatening inflation.

The Punch

Yet-to-be-identified gunmen on Wednesday night fired several shots at the Chairman of the Accord for Osogbo Local Government, Hon Asimiyu Ajibola (aka Baba Isila) and his friends.

According to a government house statement issued in Osogbo, the attack occurred around 9:50pm in the evening, and caused panic among the residents in and around the Osogbo Community Bank, where the gun wielding men repeatedly shot the car of the party chairman and his friends in their blue colour Toyota Corolla car.

It added that though the Chairman narrowly escaped being killed during the attack, he is currently on the danger list, receiving treatment at the Uniosun Teaching Hospital, Osogbo.

Narrating how the assailants carried out the attack in a commando-like operation last night, one of the co-occupants of the bullet riddled Toyota Corolla car said, “We were coming from the MDS area, Osogbo last night at about 9:50 pm and all of a sudden, the gun wielding men chased and released volley of bullets on all of us in the car.

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“However, we managed to escape to the Dugbe Divisional Police Headquarters in Osogbo where we ran for protection before the assailants retreated and ran away.

“We equally reported the matter to the police. After reporting the matter, we rushed the seriously wounded Hon. Asimiyu Ajibola to Uniosun Teaching Hospital, Osogbo where he is currently receiving medical attention”.

Reacting to the development which he condemned in strong terms, Commissioner for Information and Public Enlightenment, Kolapo Alimi urged the police not to leave any stone unturned in unearthing the masterminds of the dastardly act.

According to Alimi, “it is an unfortunate incident which should not be allowed to go uninvestigated. The culprits must be brought to book.

“We are therefore calling on the police to carry out their investigation, professionally, without fear or favour in unearthing the masterminds of the attack, which from all available indices, has elements of political colorations”.

The Dangote Petroleum Refinery & Petrochemicals (DPRP) has increased its crude oil processing capacity to 700,000 barrels per day (bpd).

A company statement has it that this was revealed in a performance test conducted by the Process Licensors, which marks a significant milestone in the facility’s operational expansion, further cementing its position as World’s Largest Single Train Petroleum Refinery.

It added that the increase sees the refinery surpass its nameplate capacity of 650,000 bpd, underlining the facility’s engineering capability and operational efficiency. The achievement demonstrates the refinery’s ability to process additional feedstock while optimizing performance across its production units.

The Vice-President for Oil and Gas, Dangote Industries Limited, Devakumar Edwin explained that the ramp-up is part of a broader, ambitious strategy to more than double capacity to 1.4 million bpd within 30 months, positioning the facility as potentially the largest refinery globally.

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According to him; the expansion is expected to boost Nigeria’s energy self-sufficiency, eliminate the country’s dependence on imported refined products and strengthen its position as a regional export hub pointing out that the Refinery’s growth trajectory reflects a deliberate move toward continental and global refining dominance, not just domestic supply sufficiency.

Owned by Nigerian industrialist and philanthropist, Aliko Dangote, the refinery commenced fuel production in 2024 and has steadily increased output of petrol, diesel, aviation fuel and other refined petroleum products.
The facility has rapidly established itself as a major supplier to both domestic and international markets, exporting refined petroleum products to several African countries and key European destinations, including the United Kingdom, France, Spain, Italy, and the Netherlands, among others. It has supplied gasoline to the American market and jet fuel to Saudi Arabia among others.

The DPRP Refinery has strengthened its role as a stabilizer in the oil and gas industry given the on-going disruptions caused by the Middle-East tension as a result of which many African countries are now patronizing the refinery for energy security.

In a further demonstration of its growing global significance, the DPRP became the world’s largest exporter of jet fuel in April, according to S&P Global Commodities.

The refinery has played a pivotal role in stabilizing fuel supplies in Nigeria, helping to eliminate dependence on imported petroleum products and easing pressure on the country’s foreign exchange reserves. Its expansion also aligns with broader national objectives to enhance local refining capacity and maximize value from Nigeria’s abundant crude oil resources.

Growing production volumes have also attracted increased interest from global crude suppliers and commodity trading firms, with the refinery sourcing feedstock from both domestic and international producers to sustain its rising output.

Looking ahead, Dangote outlined ambitious plans to transform the facility into the world’s largest refinery by 2028, targeting a processing capacity of 1.4 million barrels per day.

Such expansion, he pointed out, is expected to deliver substantial economic benefits, including job creation, increased industrial activity and improved trade balances.

The refinery is also expected to strengthen downstream manufacturing by ensuring a reliable supply of LPG and other key industrial feedstocks, including polypropylene which are widely used in the production of packaging materials and other consumer goods as well as the future plan for the supply of Linear Alkylbenzene (LAB) used in the production of detergents.