Oil price drops noticeably ahead of 2019 G20 summit

06/29/2019

Posted by: Oluwaseun Solomon

Share this post:
Despite all of OPEC’s efforts to manage the current oil problems, the average oil price has just dropped recently below $66 per barrel. Read the update here!

Naijauto doesn’t need to emphasize for anyone how the depreciating international crude oil value is critically affecting Nigeria because of the economy's total dependence on crude oil export returns.

On Thursday 27th June 2019, the average oil price dropped below $66 (₦23,760) per barrel in the world oil market as a result of pressure over concerns about the 2019 G20 summit possible breakthrough on international trade.

Donald Trump, President of the U.S. had initially said on Wednesday that it was possible to have a trade deal with Xi JinPing – the president of China but he (Trump) is still very much prepared to impose the U.S. tariffs strictly on most of the remaining Chinese imports if the two nations do not reach an agreement.

trump-vs-xi-jinping

Any movement from these two leaders may affect the entire world economy

>>> Looming price hikes in fuel?  Price of petrol may rise, senate deletes equalization fund from PIGB

When making a comment on this Trump’s proposition, Oil Broke PVM, Tamas Varga said;

“A complete breakdown of the talks will have a negative impact on the financial markets and also on oil, but the sell-off in risky assets should be short-lived,’’

“Oil bulls might have to wait until the second half of next week to start firing (on) all cylinders.’’

Nigeria-oil-rig

The current depreciating oil value in the international oil market is having serious negative effects on the Nigeria economy

Most traders commented that uncertainty arising over the 2019 G20 possible trade breakthrough, which poses different perceptions and views is majorly affecting the current oil buying decisions and overall prices.

>>> Why do you think drvers try this?  Why commercial bus drivers put diesel in petrol engine?

An FXTM research analyst, Lukman Otunuga said;

"It would be unwise to be unprepared for a possible scenario where talks descend into disagreements on trade,’’

“Such an outcome will most likely rattle financial markets as concerns over slowing global growth and sizzling trade tensions fuel risk aversion’’

Above all, everyone awaits that the 2019 G20 Summit end and then OPEC (Organisation of Petroleum Exporting Countries), as well as its allies like Russia, will meet to collectively discuss a needed extension of oil production cuts in order to support oil prices.

>>> Want more oil-related updates like this check our -> automotive industry updates.

Share this post:
Oluwaseun Solomon

Oluwaseun Solomon

Market news

Oluwaseun Solomon is a prolific and diligent automobile writer at Naijauto.com. He's also an experienced digital marketer and a creative multimedia developer that specializes in video editing. He currently contributes informative and easy to read articles on topics covering transportation, traffic updates, auto industry updates, and different car reviews.
When Solomon is not writing, you will either find him composing music, editing videos or simply enjoying YouTube "TEDx Talk" videos with a chilled drink :)

Related Articles

See more
Covid 19