Global oil prices fell by nearly 3 percent on Friday, retreating from the $100 per barrel mark reached a day earlier as easing concerns over immediate supply disruptions and expectations of higher OPEC+ output prompted a wave of profit-taking across the energy market.
As of 2:00 p.m. WAT, Brent crude traded at $97.76 per barrel, down 2.91 per cent, while West Texas Intermediate (WTI) fell 2.52 per cent to $89.87 per barrel, reversing part of Thursday's rally that briefly pushed Brent above $100 for the first time since May.
The pullback follows a week of heightened volatility driven by escalating tensions in the Middle East, particularly after Yemen's Iran-backed Houthi movement claimed responsibility for attacks on two Saudi oil tankers in the Red Sea, raising fears of disruptions along one of the world's busiest crude shipping routes.
Despite Friday's decline, both benchmarks remain on course for strong weekly gains after climbing roughly 20 per cent over the past two weeks amid persistent geopolitical tensions.
The easing in prices reflects a reassessment of short-term supply risks after no fresh attacks or major geopolitical developments emerged over the past several hours. Market sentiment was also influenced by U.S. President Donald Trump's warning that Iran and its Houthi allies would face severe military consequences if commercial vessels were targeted again, a development that helped reduce the geopolitical risk premium embedded in crude prices.
Beyond geopolitical factors, expectations of additional crude supply also weighed on the market.
Reports indicate that the OPEC+ alliance is considering another increase in production quotas at its upcoming meeting, with additional output potentially taking effect from September if member countries approve the proposal. Analysts say higher production could ease concerns over tightening global supplies despite continuing instability across the Middle East.
The broader energy complex also weakened during Friday's session. Gasoline futures declined 2.67 per cent to about $3.4030, heating oil slipped 2.65 per cent to $4.2262, while natural gas futures eased 0.86 per cent to $2.891, reflecting a broader repricing across energy markets.
Meanwhile, concerns over global fuel consumption continue to cap further gains in crude prices. Investors remain cautious that sustained increases in energy costs could worsen inflationary pressures, slow economic growth and weaken oil demand, particularly as discussions around stagflation risks gain momentum.
Although prices have retreated from Thursday's highs, the market remains highly sensitive to developments in the Middle East, with traders continuing to monitor security conditions in the Red Sea, OPEC+ production decisions and broader global demand trends for direction.
For Nigeria's downstream petroleum market, the latest decline may provide temporary relief after days of rising replacement costs. However, industry observers say sustained movements in international crude prices, alongside exchange rate dynamics and shipping costs, will remain the primary drivers of depot and retail fuel prices in the coming weeks.