Adedapo Adesanya
By Adedapo Adesanya
Crude oil prices continued to trade higher on the global market as the new week began on Monday with major futures trading at higher prices. As at the time of this report, Brent crude went above $62 to trade at $62.68 showing that the price rose by $1.14 or 1.84 percent.
This spells good news for the Nigerian economy which has a declining foreign reserves might receive a huge boost as a result of the high price of the Brent.
As for the US West Texas Intermediate (WTI) Crude, it appreciated by 2.65 percent or $1.50 to trade at $58.02 as the OPEC Basket was not left out, gaining $0.17 equivalent to 0.28 percent to trade above $60 at $60.75.
Business Post gathered that prices rose on Monday following the new Saudi energy minister, Prince Abdulaziz bin Salman confirmation that he would stick with his country’s policy of limiting crude output to support prices.
Prince Abdulaziz said the pillars of Saudi Arabia’s policy would not change and a global deal to cut oil production by 1.2 million barrels per day would survive.
The energy minister, who is also the son of Saudi King Salman and a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), replaced Khalid al-Falih on Sunday.
Crude prices were also supported by comments made by Israeli Prime Minister Benjamin Netanyahu. He said Monday that Iran has a secret nuclear facility and called for action against the Middle Eastern nation.
The price of oil may continue to climb so long as US-China trade war uncertainty remains muted.
