Nigeria’s crude oil market experienced a strong rebound on Monday, with Bonny Light settling near $67 per barrel as buyers returned to the energy market following a sharp decline last Friday.
The rally came as traders grew cautiously optimistic about potential easing of trade tensions between the world’s two largest economies, the United States and China.
Brent Crude traded at $63.76 per barrel, while West Texas Intermediate (WTI) rose 2% to $59.92, recovering from more than a 4% drop in prices late last week—its lowest since early May.
Analysts said Monday’s gains were partly driven by bargain hunting, as crude had been oversold amid last week’s panic.
Market sentiment shifted after U.S. President Donald Trump signaled that Washington is open to supporting China’s economic stability despite looming trade actions.
“We want to help China, not hurt it,” Trump posted on Truth Social, adding that China’s economy “will be fine.” However, he also threatened to impose 100% tariffs on Chinese imports and dismissed the need for a face-to-face meeting with Chinese President Xi Jinping at the upcoming summit in South Korea.
Beijing swiftly warned of retaliation if Washington moves forward with the tariffs, heightening global trade uncertainty. Still, traders appear to be betting on diplomacy ahead of the scheduled meeting between the two leaders at the APEC summit later this month.
A note from Goldman Sachs said: “We believe the most aggressive trade measures may ultimately be rolled back or delayed. Both sides have incentives to ease tensions and stabilize markets.”
Last week’s steep sell-off was triggered by China’s expansion of rare earth export restrictions, widely viewed as a response to Washington’s planned increase in export controls on “critical software” starting November 1. This escalation rattled investors and drove a sell-off across commodities.
Meanwhile, OPEC+ producers continue to follow a cautious strategy, gradually reversing voluntary cuts to avoid oversupply. Despite weaker demand signals, their restraint has helped stabilize the market.
Analysts warn that volatility will remain high, but if trade frictions ease and demand picks up, crude prices could find firmer support in the short term.
Adding a domestic boost, Nigeria has commissioned its first fully owned Floating Storage and Offloading (FSO) vessel near the Bonny export terminal.
The facility, with a capacity of 2.2 million barrels, is located in the Eastern Niger Delta and is expected to strengthen the country’s export infrastructure.
According to the Ministry of Petroleum Resources, the project will reduce reliance on pipelines, minimize theft and vandalism, and support increased output from Oil Mining Lease 18 and other nearby assets.
The oil market also drew support from geopolitical developments after Trump declared an end to the war in Gaza ahead of a planned hostage-prisoner exchange.
His visit to Israel’s parliament on Monday is expected to be a symbolic moment, as the ceasefire he helped broker enters its fourth day.
