Crude oil prices at two-month highs

Prices of crude in the international market made a dramatic increase on Friday, reaching a two-month high, as the Brent North Sea crude reached $38.72 a barrel, the highest level since early January while the US benchmark West Texas Intermediate hit a two-month high of $35.94.

According to reports, the surge in prices of commodities may not be unconnected with
positive US jobs data handed.

It would be recalled that prices of crude recently went near 13-year low below $30 a barrel.

An analyst with Commerzbank, Carsten Fritsch said “The price rise was boosted by reports of declining supply” from OPEC (Organization of Petroleum Exporting Countries) and the United States.

“What is more, efforts are ongoing to persuade other countries to cap their oil production, as Saudi Arabia, Russia, Venezuela and Qatar (have) agreed to do.”

Read also: NSE LIVE! Equities rebound as crude oil price firms up

Nigeria, an OPEC member country, had on Thursday, said key crude producers plan to meet this month in Russia to discuss a proposed output freeze.

According to the Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu, there would be a “dramatic price movement” after the March 20 gathering.

Crude has picked up recently following speculation over plans by major oil producers including OPEC kingpin, Saudi Arabia to cap output. Nigeria is also a part of the cartel, while major oil producers Russia and the United States sit outside OPEC.

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