Nigeria’s crude oil grades sell above $86 after Raisi’s death

Nigeria’s oil futures, Brass River and Qua Iboe, recorded gains on Monday following the news that a helicopter with Iran’s president on board had crashed and both he and the country’s foreign minister died.

On Monday, Brass River, a sweet medium light crude, gained 0.70 percent to trade at $86.60 per barrel, while the Qua Iboe, a light sweet crude grade, also gained 0.70 percent to trade at $86.60 per barrel.

ExxonMobil produces Qua Iboe from numerous offshore fields and exports through the Qua Iboe Terminal. The crude is known for its high quality and low sulfur content, making it a popular choice for refiners.

Experts said the death of the Iranian president is likely to cause volatility in oil markets as investors gauge the potential impact on the country’s oil production and exports.

“From here, we expect overall market fundamentals to improve and see similar inventory draws and price action as observed last summer, with Brent oil moving $10 higher from current levels by September,” JPMorgan analysts wrote in a note late Sunday.

Iranian President Ebrahim Raisi, a hardliner and potential successor to Supreme Leader Ayatollah Ali Khamenei, died in a helicopter crash near the Azerbaijan border, according to officials and state media.

According to early reports, the crash was caused by bad weather, which made the search and rescue operation difficult.

But despite Raisi’s death, Bloomberg reports that analysts expect Iran’s oil policy to remain unchanged as Khamenei retains ultimate authority over state affairs.

Giovanni Staunovo, a commodity analyst at UBS Group AG, stated that “oil policies are likely to be unaffected,” a view shared by Alan Gelder, vice president of refining, chemicals & oil markets at consultancy Wood Mackenzie Ltd.

Ayatollah Ali Khamenei, Iran’s Supreme Leader, has already made a statement seeking to reassure the population there would be no disruptions to ongoing state affairs.