Global crude oil prices fell on Wednesday after US President Donald Trump said American and Iranian representatives had held what he described as “very good” and productive talks at the United Nations.
The development eased some concerns in the oil market over a prolonged disruption to global supplies. Brent crude, the international benchmark, fell to around $98.41 per barrel, while US West Texas Intermediate (WTI) dropped to $89.23 per barrel in Asian trading. Both benchmarks traded below the $100 mark after repeatedly exceeding that level since the Middle East conflict began in February.
Trump said the three-hour meeting was “very good” and “very productive”, adding that another meeting had been scheduled. His comments came shortly after his address to the United Nations, where he said he faced a major decision over whether to reach an agreement with Iran or intensify military action.
The market reaction was also influenced by developments affecting oil supplies from the Gulf region. Saudi Arabia has reportedly resumed operations on its East-West Pipeline, an important route for transporting crude and one that had been disrupted by attacks. The kingdom is also expected to resume some exports through the Red Sea later in the week.
For Nigeria, a major crude oil-producing country, movements in international oil prices are closely watched because crude exports remain an important source of foreign exchange and government revenue. A sustained fall in global oil prices could affect government revenue projections, while lower crude prices can also influence the cost of petroleum products and other energy-related expenses.
However, the immediate effect on petrol prices in Nigeria would depend on several factors beyond the international crude benchmark, including exchange rates, local supply conditions, refining costs and the pricing arrangements in the domestic petroleum market.
Analysts quoted in reports said the US-Iran discussions could shift market expectations away from an assumption of further escalation towards the possibility of a diplomatic resolution, although a final agreement between Washington and Tehran remains uncertain.
