Thursday, October 22, 2020
Home Economy Oil prices rise amid supply cuts

Oil prices rise amid supply cuts

Oil prices climbed on Tuesday, pushed up by supply cuts led by producer club, OPEC, and U.S. sanctions against Iran and Venezuela, although concerns about a potential recession kept markets from rising further.

Brent crude oil futures were at 67.48 dollars per barrel at 0747 GMT, up 27 cents, or 0.4 per cent, from their last close.

U.S. West Texas Intermediate (WTI) futures were at 59.35 dollars per barrel, up 53 cents, or 0.9 per cent, from their last settlement.

Oil prices have been supported for much of 2019 by efforts by OPEC – Organisation of the Petroleum Exporting Countries – and non-affiliated allies such as Russia, who have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year to prop up markets.

Prices have also been driven up by U.S. sanctions on oil exporters and OPEC-members – Iran and Venezuela.

Commodity trader, Trafigura, said on Monday it expects Brent to trade between 66 dollars and 67 dollars a barrel, or slightly higher, for the rest of the year.

Analysts said that oil prices would likely be higher by now if not for a spreading economic slowdown that, some say, could turn into a recession soon and dent fuel consumption.

“Recession risks have risen to the highest since 2008,” said Ole Hansen, Head of Commodity Strategy at Saxo Bank.

Manufacturing data from Asia, Europe and North America is pointing to a sharp economic slowdown.

“Global factory output growth slowed to a one percent rate last quarter, and indicators point to a near stall this quarter,” said JPMorgan Chase Bank.

“Outside China, Asian industry was already contracting as we turned into the New Year,” the U.S. bank added.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

FOLLOW US:

6,985FansLike
1,458FollowersFollow
553SubscribersSubscribe

Most Popular

Curfew: Flight Operations at MM Airport Lagos suspended

Flight operations at the Murtala Mohammed Airport in Lagos have been suspended following the 24-hour curfew imposed in the state by Babajide...

#EndSARS: Senate asks Buhari to address Nigerians

The Senate on Tuesday asked the President, Major General Muhammadu Buhari (retd.), to address the nation immediately on the current nationwide protests...

I won’t endorse 2021 budget if there’s no compansation provision for #EndSARS victims – Speaker

The Speaker of the House of Representatives, Femi Gbajabiamila, has disclosed that he will not sign the 2021 budget if provision for...

#EndSARS: A MULTIPLE TWIST TO A PROTEST

It is saddening what the so called #EndSARS protest has today turned to. Is the alleged prison break...