Business
Oil prices fall over demand worries, planned supply increase; Bonny Light gains 0.32%
Oil prices sank further on Tuesday amidst concerns that new curbs to forestall exploding coronavirus infections in the United States and Asia could put fuel demand recovery in limbo just as OPEC+ producers brace up to expand supply from August.
Brent crude futures was 26 cents or 0.61% down at $42.46 per barrel by 11:05 West African Time and U.S.’ West Texas Intermediate (WTI) crude futures dipped by 28 cents or 0.70% to $39.82. The two benchmarks lost a little more than 1% at the previous session.
Bonny Light, Nigeria’s banner oil grade, extended gains on Monday, rising by 14 cents or 0.32% to $43.42 a barrel while Qua Iboe, another key national grade edged up by $1.13 or 2.69% to $43.10.
California, U.S. most populous state and biggest state economy, was ordered by its governor on Monday to close bars and suspend movie theatres, restaurants, zoos and museums indoor operations over an upsurge in the virus’ spread.
California’s decision is coming on the heels of the latest restoration of a number of restrictions in states like Florida and Texas. Asia and Australia have similarly imposed new limitations.
Read also: Oil prices fall over spike in coronavirus cases, Bonny Light gains 60 cents
Markets are on tenterhooks to receive the decision of the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, jointly know as OPEC+ on proposed output cuts.
The Joint Technical Committee of OPEC meets on Tuesday to deliberate on the plan while the Joint Ministerial Monitoring Committee will hold its own conference Wednesday.
OPEC+ is on course to whittle down its record output cut of 9.7 million barrels per day to 7.7 million between August and December.
The oil market is approaching a symmetry as demand improves, OPEC’s secretary general said on Monday.
China, the world’s biggest oil importer, reached both its daily and monthly highs for imports in June, data showed on Tuesday.
Citibank analysts believed the impending supply increase could impact prices taking into consideration demand uncertainties.
Morgan Stanley said oil demand was unlikely to climb past pre-pandemic levels until late 2021.
The market will equally be on the lookout for fuel consumption statistics to be issued on Tuesday from the American Petroleum Institute industry group and on Wednesday from the U.S. Energy Information Administration.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: In Kwara, multimillion-naira milk processing plant is abandoned, converted to a chicken outlet
After the government spent millions of naira to establish a milk processing plant in Kwara State that would provided jobs...
SPECIAL REPORT: For Sokoto communities, promise of healthcare is akin to death sentence
In this story, ABDULRASHEED HAMMAD delves into the dire realities of Primary Health Care services in Sokoto State, shedding light...
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...
SPECIAL REPORT: Torturous experiences of students with disabilities in Oyo tertiary institutions
For students with disabilities in Oyo state-owned tertiary institutions, learning is a torturous and distressing experience, considering the building structures...