Oil Prices Near Seven-month Highs Ahead of U.S-Iran Talks Today
• UK refineries face extinction after key shutdowns
•2025 licensing round: Submission of applications ends Friday
Emmanuel Addeh in Abuja
Oil prices were hovering near seven-month highs yesterday as the threat of military conflict between the U.S. and Iran that could disrupt supply continued to worry investors, and as talks between the parties are set for Thursday (today).
Nigeria’s benchmark, Brent futures were up 33 cents, or 0.5 per cent, at $71.10 per barrel, while WTI futures rose 22 cents, or 0.3 per cent, to $65.84.
Brent prices reached their highest since July 31 on Friday, while WTI hit its highest since August 4 on Monday, and both contracts have held near there as the U.S. has positioned military forces in the Middle East to compel Iran to negotiate an end to its nuclear and ballistic missile programme.
An extended conflict could disrupt supplies from Iran, the third-biggest crude producer in the Organisation of the Petroleum Exporting Countries(OPEC), and other countries in the key Middle East producing region.
“This uncertainty means the market will continue to price in a large risk premium and remain sensitive to any fresh developments,” ING commodities strategists said on Wednesday.
U.S. envoys Steve Witkoff and Jared Kushner are slated to meet with an Iranian delegation for a third round of talks on Thursday in Geneva. Iran’s Foreign Minister Abbas Araqchi said on Tuesday that a deal with the U.S. was “within reach, but only if diplomacy is given priority,” CNBC reported.
“(U.S.) President (Donald) Trump has warned that without a deal, there will be ‘very bad consequences’. Whether (Iran’s) concessions will meet the U.S.’s ‘zero enrichment’ red line remains to be seen,” Tony Sycamore, IG market analyst, said in a note.
Amid the heightened tensions, Iran and China have accelerated talks to purchase Chinese anti-ship cruise missiles, according to Reuters sources, which could target the U.S. naval forces that have assembled near the Iranian coast.
Anti-ship cruise missiles would enhance Iran’s strike capabilities and threaten the U.S. naval forces, according to experts. Trump will deliver the traditional State of the Union address to Congress on Tuesday evening. Two White House officials, speaking on condition of anonymity, said Trump will discuss his plans for Iran but did not offer details.
While geopolitical tensions have supported prices, the market is also contending with concerns of large inventory gains as global supply is exceeding demand.
According to market sources, the American Petroleum Institute (API) late on Tuesday reported a massive increase in U.S. oil stockpiles of 11.43 million barrels in the week ended February 20.
Also, the UK government has published a call for evidence on the future of the country’s downstream sector, while the Fuels Industry UK association called for urgent change in Britain’s policy to protect its four remaining refineries from extinction.
The UK’s Department for Energy Security and Net Zero launched a call for evidence, aiming to publish a strategy for the downstream oil sector in the autumn of 2026.
The UK has been left with just four refineries, after two processing sites closed over the past year: the Prax Lindsey refinery in Lincolnshire and the Grangemouth refinery in Scotland.
Despite the critical role they play in the UK’s fuel supply and energy security, “refineries in the UK face challenges including: falling domestic demand; increased international competition from newer competitors in the Middle East, Asia and Africa; ageing infrastructure; high energy costs; and growing costs from carbon emissions that are hard to abate,” the government said.
The call for evidence is “a vital opportunity to meaningfully address the challenges of a sector currently being driven to the brink,” Fuels Industry UK, the representative body for the businesses supplying over 85 per cent of the UK’s transport energy, said.
“With only four operating refineries remaining – the lowest number in modern history – the UK is becoming more exposed to global instability for both fuels and the many other products that are produced in the sector,” the association noted.
The industry body deplored the fact that the UK’s refineries pay up to £400 million, or $540 million, annually in carbon costs. In contrast, non-UK competitors often face no such pricing, “giving imports an unfair advantage across the supply chain.”
Fuels Industry UK recommended that the UK level the playing field and introduce a Carbon Border Adjustment Mechanism (CBAM) by January 2028 to ensure imports carry the same carbon costs as UK-made fuels.
“Without urgent policy action to create a level playing field, we risk exporting jobs and emissions and continuing to deindustrialise rather than decarbonise credibly,” said Elizabeth de Jong, CEO of Fuels Industry UK.
Meanwhile, in an update on the Nigeria 2025 licensing round, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has notified the public that registration and submission of applications for pre-qualification end this Friday.
“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) hereby notifies the general public that registration and submission of applications for Pre-Qualification under the Nigeria 2025 Licensing Round shall close at 4.30pm on Friday, 27 February 2026, in accordance with Section 11.2 of the Licensing Round Guidelines.
“All Applicants are advised to ensure full compliance with the stipulated submission requirements within the prescribed timeline,” the brief statement added.
