Nigerian crude grade price rose on Monday, settling near $70 per barrel after a record peak earlier in the month.

Bonny Light crude oil reached about $70 per barrel as the country surpassed the quota set by the Organization of Petroleum Exporting Countries (OPEC) and its partners (OPEC+).

Crude oil prices saw a slight recovery after weeks of selling pressure. Brent oil futures increased to $68 per barrel, while West Texas Intermediate (WTI) oil futures increased by 15 cents, or 0,24 per cent, to $63.81.

The rise was after Ukraine stepped up attacks on Russia, raising concerns that the Russian oil supply could be disrupted.

Expectations for a cut in U.S. interest rates also supported the outlook for global growth and fuel demand.

Bonny Light crude oil sold for $71 per barrel in July, peaked early August to about $75 a barrel before plunging.

The price rise was attributed to a combination of improved security conditions in the Niger Delta and a slow recovery in upstream investment, boosted by the transfer of assets from foreign oil companies to local oil operators.

READ ALSO: Oil Prices Climb After Ukraine Attacks Hit Russian Energy Sites

Nigeria’s crude oil production averaged 1.5 million barrels per day in July, surpassing its OPEC+ quota of 1.5 million barrels per day for the second consecutive month, according to OPEC’s August Monthly Oil Market Report.

Indian refiners have bought two million barrels of Nigerian crude for delivery in September and October. India is now the largest consumer of cheap Russian oil, accounting for 40% of its total imports—its highest level in 2024. This supply can meet India’s rising oil needs without putting extra pressure on the open energy market.

Nigerian crude grades are ideal for India’s refineries due to their low sulfur content, which could signal the beginning of a long-term partnership between the two countries.

However, India will now have to compete with the Dangote Refinery.

By the end of this year, the refinery will purchase all its crude from the Nigerian market, according to Devakumar Edwin, Dangote Industries vice-president.

This marks a shift from its previous practice of sourcing most of its crude from the US, Brazil, Equatorial Guinea, Angola, and Ghana. After several delays, the 650,000-barrel-per-day refinery began operations in 2024.

The $20 billion refinery, which has a larger capacity than the biggest refineries in Europe, currently produces naphtha, diesel, gasoline, and aviation fuel.