Good news for Nigeria as oil prices rise in dramatic turn
– Global oil prices rise after the president of the Organisation of Petroleum Exporting Countries (OPEC) gave market assurance of a September rise
– Prices rise above $45 a barrel
Crude oil prices took a dramatic turn on August 8, Monday, as nearly a three percent increase observed.
This came as the president of the OPEC Mohammad Al-Sada, who also doubles as Qatar’s minister of energy and industry, assured the market of a September rise.
He stated that “higher oil demand is expected in the third and fourth quarters”, leading to higher prices.
READ ALSO: Oil gains after Russia says it’s open to OPEC meeting
Al-Sada added that, since February of this year, the oil price had experienced a stable improvement after a decline in crude oil production, supply outages and a decrease in oil inventories, while the global demand for oil improved in that period.
After his declaration, Brent crude, the international benchmark for oil, surged from $42 to $45.33 a barrel – nearly a three percent increase.
West Texas Intermediate (WTI) rose by 2.9 percent to climax at $43.02.
“These are more of an outcome resulting from weaker refinery margins, inventory overhang – particularly of product stocks, timing of Brexit and its impact on the financial futures markets, including that of crude oil,” Al-Sada said.
According to the secretariat of the organisation, OPEC basket price rushed to $41.10 a barrel, against $40.08 before Al-Sada’s sentiment.
The minister further stated that the economies of main oil consuming countries are expected to improve which in turn would enlarge oil demand in the coming quarters, particularly in preparation for the approaching winter season in the Northern Hemisphere.
READ ALSO: How oil crisis in Nigeria affects Nigerian people
The minister assured that OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market.
The 70% drop in the crude price over the last 18 months has hit the budgets of oil-dependent nations such as Nigeria, Venezuela, Russia, and even some of the richer Gulf nations such as Bahrain.
The post Good news for Nigeria as oil prices rise in dramatic turn appeared first on Nigeria News today & Breaking news | Read Naij.com 24/7.