Nigerian crude prices moved closer to the Federal Government’s benchmark following a series of drone attacks on oilfields in Iraq, the latest in a wave of regional tensions raising fears of supply disruptions in the Middle East.

Key Nigerian grades—Bonny Light, Brass River, and Qua Iboe—were trading at $72.5 per barrel, falling $2.5 short of the government’s benchmark price.

Crude production in Iraq’s Kurdistan region has dropped by 140,000 to 150,000 barrels per day, representing more than half of its average daily output of 280,000 barrels.

Drone strikes loaded with explosives hit the Tawke and Peshkabir oilfields operated by DNO ASA, as well as the Dohuk area, while a separate attack ignited a fire at the Sarsang field run by HKN Energy, prompting a regional shutdown.

Oil consumption in the first half of July averaged 105.2 million barrels per day—an increase of 600,000 bpd compared to the same period last year and largely in line with projections.

Nigeria is aiming to boost its OPEC+ production quota by 25%, aligning more closely with the alliance’s output framework.

The Group Managing Director of the Nigerian National Petroleum Company Limited, Bayo Ojulari, said he supports raising the country’s quota to two million barrels per day, up from the current 1.5 million bpd. OPEC+ members are currently in talks over setting new production targets for 2027.

Despite its official cap, Nigeria has recently exceeded the 1.5 million bpd mark, thanks in part to efforts to curb rampant oil theft and pipeline vandalism.

Data from the Nigerian Upstream Petroleum Regulatory Commission showed that Nigeria’s average daily crude oil production exceeded the OPEC+ quota of 1.5 million barrels per day in June.

This was the second time in the year that the country surpassed its assigned production limit.