Qua Iboe crude, Nigeria’s premium light sweet crude, surpassed $100 a barrel for the first time since 2022, as the global market continues to suffer a supply deficit.

The price surge comes as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have maintained production cuts. At the same time, oil demand has rebounded as economies recover from the COVID-19 pandemic. The ongoing war in Ukraine has also added to supply disruptions.

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.

“The rise in Qua Iboe prices is a sign of the tightening oil market,” said analyst Bjarne Schieldrop at SEB. “OPEC+ is struggling to keep up with demand, and the war in Ukraine is adding to supply concerns.”

The higher price of Qua Iboe is good news for Nigeria, which relies on oil exports for a significant portion of its revenue. However, it will also likely lead to higher gasoline and diesel prices for consumers worldwide.