Oil Price Slumps Below $80 on Hopes of De-escalation of US-Iran Conflict

• Dangote, Canadian PM discuss investment partnerships

• Refinery cuts ex-depot petrol price to N1,165, diesel to N1,570

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

Global oil prices extended their decline yesterday, with Nigeria’s benchmark, Brent crude, slipping below the $80 per barrel threshold amid growing optimism that tensions between the United States and Iran could ease.

Brent crude fell marginally by 2 cents, or 0.03 per cent, to $78.75 per barrel, while the US benchmark, West Texas Intermediate (WTI), dropped 35 cents, or 0.46 per cent, to $75.42 per barrel.

It came as the Dangote Petroleum Refinery has reduced the ex-depot price of its petrol to N1,165 per litre, down from N1,215 per litre, representing a cut of N50 per litre.

Also, the President and Chief Executive of Dangote Industries Limited, Aliko Dangote, has held discussions with Canada’s Prime Minister, Mark Carney, on opportunities to strengthen investment partnerships and deepen economic cooperation between Canada and Africa.

The latest oil price decline followed a sharp 5 per cent drop on Tuesday, which pushed Brent below $80 for the first time since July 13, as traders reacted to reports suggesting diplomatic efforts were underway to end hostilities between Washington and Tehran.

Although Iran denied that peace negotiations were taking place, US President Donald Trump disclosed that officials held an “all-day negotiation” with Iranian representatives describing the discussions positively while warning that the US would respond “really hard” if a deal failed to materialise.

The prospect of reopening the Strait of Hormuz, through which about 20 per cent of global oil and liquefied natural gas supplies pass under normal conditions, continued to weigh on crude prices as traders anticipated an improvement in Middle East oil flows.

Further pressure came from the United States, where official data showed an unexpected increase in crude inventories. According to the Energy Information Administration (EIA), US crude stockpiles rose by 2.5 million barrels to 407 million barrels last week, contrary to analysts’ expectations of a 1.5 million-barrel draw. Imports also edged higher while refinery activity slowed slightly.

However, losses were limited by fresh geopolitical risks in the Red Sea after Yemen’s Iran-backed Houthi movement announced a maritime embargo targeting Saudi ports and vessels and claimed responsibility for a missile attack on a Saudi oil tanker near Yanbu, one of the kingdom’s key crude export terminals.

In addition, renewed attacks on Russian and Ukrainian ships, ports and export terminals in the Black Sea have heightened concerns over disruptions to global grain and oil trade, adding another layer of uncertainty to global commodity markets.

The meeting focused on expanding investment opportunities in Canada and exploring how the Dangote Group, alongside other African investors, can contribute to Canada’s economic growth. Both leaders also exchanged views on Canada’s Africa Strategy and the importance of promoting stronger two-way trade and investment flows between Canada and African countries.

Dangote, according to a statement yesterday, emphasised the growing potential for collaboration between African and Canadian businesses, noting that closer economic ties would unlock new opportunities for job creation, innovation, industrial development, and long-term prosperity.

“Strategic partnerships between Africa and Canada have immense potential to drive sustainable growth and create value for both regions. There is a strong case for increasing investment, fostering innovation, and building mutually beneficial commercial relationships,” Dangote said.

As part of his visit, Dangote also met with Ahmed Hussen, Member of Parliament and Chair of Canada’s Foreign Affairs Committee. Their discussions reinforced the need to advance Canada-Africa economic relations through enhanced trade, investment, and long-term strategic cooperation.

Meanwhile, the Dangote Petroleum Refinery has reduced the ex-depot price of its petrol to N1,165 per litre, down from N1,215 per litre, representing a reduction of N50 per litre.

Similarly, the company slashed the ex-depot price of diesel to N1,570 per litre from N1,650 per litre, amounting to a decrease of N80 per litre.

In a statement issued yesterday, Dangote Refinery said the new pricing structure would be effective from August 6, 2026, thereby reaffirming its commitment to providing affordable, high-quality petroleum products to the Nigerian market.

According to the statement, the price review reflects Dangote Refinery’s ongoing efforts to enhance energy affordability, improve access to refined petroleum products, and support economic activities across Nigeria.

The refinery said it remains committed to ensuring stable supply while leveraging operational efficiencies to deliver value to consumers, businesses, and stakeholders.

As Africa’s largest refinery, Dangote Petroleum Refinery said it continues to play a pivotal role in strengthening Nigeria’s energy security, reducing reliance on imports, and supporting the nation’s economic development through the supply of world-class petroleum products.

The company reaffirmed its dedication to contributing to the growth of the Nigerian economy and passing on the benefits of improved operational efficiencies to consumers whenever market conditions permit.