• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

Oil price gains likely to halt over demand uncertainty, as US-China tension intensifies

Chike Olisah by Chike Olisah
May 25, 2020
in Business News, Politics
Oil prices gain likely to halt over demand uncertainty as US-China tension intensifies
Share on FacebookShare on TwitterShare on Linkedin

Crude oil prices, which have been on a steady increase for 3 consecutive weeks, seem to be coming to an end primarily due to the rising tension between the United States and China, and caution over the prospect for a global recovery in oil demand.

This is compounded by the disclosure of the world’s second-largest economy, China, that it is uncertain about its GDP growth target for 2020 because of the coronavirus outbreak.

The Brent crude, now $34.60 per barrel, sold for $36.41 about 4 days ago. The American WTI, which sells for $32.84 per barrel, sold for almost $34 per barrel a few days ago. Also, the Bonny light crude, selling for $33.01 per barrel, sold for $34.46 per barrel about 4 days ago.

RelatedStories

OPEC warns of 23 million bpd oil shortfall globally by 2030 without $17.4 trillion investment

OPEC warns of 23 million bpd oil shortfall globally by 2030 without $17.4 trillion investment

July 2, 2025
Latest crude oil price drop threatens Nigeria’s revenue and naira stability 

Nigerian Oil falls below $70 a barrel amid faded supply disruption  

July 1, 2025

With China’s oil demand climbing back to about 13 million barrels per day, which is about 90% of the pre-pandemic level, oil traders are holding out hopes of a quick rebound elsewhere with the global easing of lockdown.

(READ MORE:Here are 7 oil producing countries that have been most affected by COVID-19)

The output cut by OPEC+ and top oil-producing countries and more than 2.2 million barrels per day production shut in by U.S, have meant that the supply side of the equation is doing just fine.

Brent crude drops to $25, oil demand drops by about 10% of world’s consumption, Brent Crude Oil hits $26, as Nigeria's Sweet Crude demand falls, Oil price pushes up before OPEC meeting, Asian equity markets mixed, NIGERIA OIL: Darker days ahead as Brent falls below production cost, Oil prices gain likely to halt over demand uncertainty as US-China tension intensifies

However, the rising tension between the US and China is weighing on the global markets. For political reasons, the leadership of each country is blaming the other for the coronavirus pandemic. The Chinese Foreign Minister, Wang Yi, warned that the US leaders were potentially pushing towards a new cold war, which is having a negative impact on investors.

READ ALSO: Industries with low exposure to COVID-19

Although the US crude inventories fell by 5.6 million barrels last week, the gasoline stocks actually increased.

According to Commerzbank, “After weeks of rising, US gasoline demand was down again for the first time. Demand for oil products also remains subdued elsewhere. With concerns on the demand side remaining we regard the latest price rally on the oil market to be excessive.”

Despite assurances from the Trump administration’s officials, a V-shaped recovery is extremely unlikely.

There also appears to be a belief that the US and other countries will not avoid the second wave of infections after reopening the economy.

(READ MORE:Global oil supply to drop by 12 million b/d to 9 year low, covid-19 resurgence still a concern – IEA)

According to Rystad Energy, “A second wave is not such a remote possibility and a new round of lockdowns could send oil prices back to much lower levels very quickly and the markets know it. Therefore, lower prices this morning are not a surprise and they are not necessarily the result of a market event, they are rather a correction of the consecutive boosts that oil has seen over the last days.”

The data firm still believes that oil prices will stabilize at the $30-$35 range with the potential to be $40 later in the year, if and when demand improves and approaches the pre-covid-19 levels.


Follow us for Breaking News and Market Intelligence.
Tags: Brent Crudechinacrude oilCrude oil pricesOPECUSUS-China trade tensions
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

Related Posts

OPEC warns of 23 million bpd oil shortfall globally by 2030 without $17.4 trillion investment
Energy

OPEC warns of 23 million bpd oil shortfall globally by 2030 without $17.4 trillion investment

July 2, 2025
Latest crude oil price drop threatens Nigeria’s revenue and naira stability 
Commodities

Nigerian Oil falls below $70 a barrel amid faded supply disruption  

July 1, 2025
Oil Down, Dollar Weak, Naira Up: Why Nigeria’s Markets Are Defying the Odds – Drinks & Mics Ft. Chika Mbonu
Digital Media

Oil Down, Dollar Weak, Naira Up: Why Nigeria’s Markets Are Defying the Odds – Drinks & Mics Ft. Chika Mbonu

June 28, 2025
OPEC, crude oil production
Energy

OPEC+ output falls short in May as members cut oil to offset quota breaches

June 16, 2025
China’s wobbly economy: Implications for Nigeria’s next president
Economy

China grants duty-free access to all African countries amid shifting global trade dynamics 

June 12, 2025
U.S. and China reach tentative deal on rare earth minerals amid trade tensions 
Economy

U.S. and China reach tentative deal on rare earth minerals amid trade tensions 

June 11, 2025
Next Post
Post COVID-19 and Africa's informal sector: Africa and Nigeria "The new normal"

New normal for the informal sector

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • NGX reveals how over N4.63 trillion was raised in H1 2025 
  • Breaking: Femi Otedola to launch new book ‘Making it Big’ on August 18 
  • Stock Market soared in Naira, sank in dollars during Buhari’s tenure 

Follow us on social media:

Recent News

NGX

NGX reveals how over N4.63 trillion was raised in H1 2025 

July 17, 2025
Femi Otedola

Breaking: Femi Otedola to launch new book ‘Making it Big’ on August 18 

July 17, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics