Global crude oil prices extended their decline on Monday, raising expectations that the downward trend could eventually translate into lower petrol pump prices in Nigeria.
Brent crude traded at about $101.5 per barrel, while West Texas Intermediate (WTI) stood at approximately $98 per barrel at the time of reporting.
The prices represent declines of 2.29 per cent for Brent and 2.37 per cent for WTI compared with their respective weekend trading levels.
The development comes amid heightened tensions in the Middle East, which have disrupted shipping activities through the strategic Strait of Hormuz.
Data showed that the number of commodity vessels transiting the Strait of Hormuz had dropped to about a dozen, from around 35 previously, even as tanker traffic recorded an improvement in Saudi Arabia.
Despite the decline in global crude prices, petrol pump prices in Nigeria have remained high, with motorists yet to experience a widespread reduction at filling stations.
In Abuja, petrol was being sold for between N1,395 and N1,450 per litre on Monday, although some retail outlets had reduced their prices over the weekend.
The reductions came amid increasing competition in Nigeria’s downstream petroleum sector, with some filling stations adjusting their pump prices downward in response to changing market conditions.
