We have been covering quite a few stories and updates here at Naijauto.com on the recent issues in the local and foreign oil and gas sector. This is another update on the talks of the higher OPEC+ production and how it has affected oil price internationally.
On Tuesday 16th April 2019, Brent oil surprisingly slipped to around $71 per barrel and its clearly pressured by the expectation of the higher U.S inventories and concerns about the willingness of Russia to stick with the OPEC-led supply cuts that have been laid down.
Most analysts expect on average that the U.S crude oil stockpiles should have risen by as much as 1.9 million barrels this last week which will be the 4th straight increase at this period.
The Chief Market Analyst at the TF Global Markets, Naeem Aslam in London said;
“We have already seen these inventories going higher in the last week’s print,”
“The rising inventory data has raised many questions for investors – no one wants to see the oil glut again.”
The global benchmark, Brent Crude went down 12% at a $71.06 per barrel at exactly 0801 GMT while the U.S’ WTI (West Texas Intermediate) crude oil gained an interesting 6 cents to a $63.46.
All the current issues in the Local and International oil Market have led to a current fuel scarcity in Nigeria
At this same period, OPEC-led supply cuts resultantly boosted Brent oil by over 30% this year, while gains have been limited by investors’ worries of the slowing economic growth possibly weakening the demand for fuel at this time.
Also, on Monday, Oil fell after some comments from Russia that has raised the concerns that OPEC’s led supply-cutting pact might not be renewed anytime sooner.
The OANDA’s Senior Market Analyst, Edward Moya when commenting on this issue said;
“There is a growing concern that Russia will not agree on extending production cuts and we could see them officially abandon it in the coming months.”
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