Oil prices record mixed fortune amid deadlock in OPEC+ talks; Bonny Light sheds $0.16
Oil prices were mixed on Tuesday as an impasse in output talks between key crude producers regarding changes to February supply forced the Organisation of the Petroleum Exporting Countries (OPEC) and its allies to shift the meeting to later in the day.
Brent crude futures for March declined by 6 cents or 0.1% to $51.03 per barrel at 08:26 West African Time, while United States West Texas Intermediate (WTI) crude for February went 1 cent up to $47.63.
Bonny Light, Nigeria’s premium oil grade, eased by 16 cents or 0.32% to $50.43 on Monday.
The oil prices of Brent and WTI contracts lost over 1% on Monday, following the inability of OPEC and its Russia-led allies, a cartel popularly called OPEC+, to reach a consensus on modifications to February’s output.
Saudi Arabia supported not pumping more oil on account of fresh lockdowns but Russia stood at the forefront of clamour for bigger supply, saying demand was improving.
“OPEC+ drama is of course steering the latest oil price downgrade, but the heavier hand is likely the still unknown impact of the new strain on economic activity and travel – both factors that warrant a belated mini-price correction after the winter holidays,” Rystad Energy’s Louise Dickson said.
Read also: Oil prices rise as OPEC+ plans to limit supply, Bonny Light loses $0.23
England began a new lockdown on Monday, following a soaring in COVID-19 cases, which came after the discovery a variant of the coronavirus.
“Near-term demand growth is stalling due to the resurgence of Covid-19 across North America, Europe and the Middle East and is likely set for deeper declines over the next several months,” said Fitch Solutions.
“This adds to our view for neutral to bullish prices across most of 2021 with difficult conditions to persist through the first half of the year,” Fitch added, noting that the oil price of Brent was anticipated to average $53 a barrel this year.
Oil prices also drew strength from the escalating tensions in the Middle East.
On Monday, the Iran’s Revolutionary Guards Corps confiscated a South Korean-flagged tanker in Gulf waters and held its crew, following a feud between Seoul and Tehran concerning Iranian funds blocked in South Korean banks due to U.S. sanctions.
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.
A tale of Kwara public school where pupils learn under the tree without chalkboards
“You cannot make people learn. You can only provide the right conditions for learning to happen.” – Vince Gowmon But...
SPECIAL REPORT: Indiscriminate waste dumps, open defecation pose threat of epidemic in Kwara as govt slow to act
Forty three-year-old Bilikis Abdulrahman covered her pineapple fruit she is selling inside a white bucket container. This, she does to...
SPECIAL REPORT: Women displaced by conflict in North-Central Nigeria become farm helps to survive
Displaced women finding refuge in Abagena camp for Internally Displaced Persons (IDP) camp in Makurdi, Benue State have resorted to...
FEATURE: Kwara residents cry out for help as rainstorm devastates their homes
Phillip Moffitt, an American author, said: “the house is a home when it shelters the body and comforts the soul”,...
SPECIAL REPORT: Small businesses suffer, as govts fail to end sit-at-home in Nigeria’s South-East
It is a Thursday afternoon in December 2022 and the sun is scorching inside the popular Ogbete Market in Enugu...