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GLOBAL OIL PRICES
Recent dip is as a result of fears that a second wave of COVID-19 pandemic will disrupt the market.
Despite the output cuts from OPEC+ and curtailments in North America, crude oil prices may be short-lived as Brent crude could slip back
After the output cut by OPEC+ helped to reduce the supply glut, crude oil prices rebounded to the highest level at over $42 per barrel
The rally in crude oil price in recent weeks has been triggered by growing economic demand around the world and crude oil production cut by major oil producers since the deadly virus COVID-19.
Some of the non-OPEC member countries recorded less than impressive compliance rates. Kazakhstan, Brunei, and South Sudan recorded 47%, 22%, and 13% compliance respectively.
Brent crude gained about 1.49%, at $40.18, 3.30 am Nigerian time – the highest level since March 6, having gained 3.3% on Tuesday.
The United States is facing a national crisis with the most significant number of coronavirus cases globally, the worst unemployment levels seen in decades, and massive crowd protests from state to state by their citizens.
Total Nigeria’s Q1’20 results are a testament that some might have it worse than others as it recorded a revenue drop of 9.3% to N70.2 billion
In the meantime, OPEC+ wants to keep the existing production output cuts beyond the June expiry date as part of efforts to rebalance the market. Countries like Saudi Arabia, the United Arab Emirates (UAE) and Iraq, have all reaffirmed their commitment to this effect.
The American WTI fell by 1.55% to sell for $25.38 per barrel, early Wednesday morning after surging 6.8% on Tuesday. Brent crude was down by 2.03% to sell for $29.37 per barrel.
The oil futures in the New York exchange, which once traded below zero dollar, is around $24 per barrel in Asian trading on Friday. This represents a 20% increase this week. Also, the Brent crude, which is around $30 per barrel, has had a 15% price increase in the last week.
Brent crude futures went down by about 1% to trade at $26.16 as at 5.45am local time.