By Adedapo Adesanya
The price of the Brent crude oil appreciated by more than 4 per cent or $2.61 on Wednesday as more positive news led by a drop in United States inventory and fresh positive expectation over oil demand boosted optimism about returning demand for crude.
During the trading day, the value of the commodity increased to $66.28 per barrel, while the price of its counterpart, the West Texas Intermediate (WTI) crude, rose by 4.9 per cent or $2.97 to $63.15 per barrel.
According to the Energy Information Administration (EIA), the US crude inventories fell by 5.9 million barrels last week, exceeding analysts’ forecasts of a 2.9 million barrels drop. In the preceding week, the agency reported an inventory draw of 3.5 million barrels.
The EIA’s inventory estimate comes a day after the American Petroleum Institute (API) reported a 3.6 million barrels inventory draw in crude oil for the same period.
Oil also found support based on a report from the International Energy Agency (IEA) that predicted global oil demand and supply were set to rebalance in the second half of the year. It added that producers may then need to pump an additional 2 million barrels per day to meet the expected demand.
The Paris-based agency noted that the global oil demand will grow 230,000 barrels per day faster than previously forecast.
World oil demand is now expected to expand by 5.7 million barrels per day in 2021 to 96.7 million barrels per day following a collapse of 8.7 million barrels per day last year, the IEA said.
This is coming a day after the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday raised its global demand forecast by 70,000 barrels per day from last month’s forecast and now expects global demand to rise by 5.95 million barrels per day in 2021.
Despite the stronger global economic indicators, the IEA said the recovery remains fragile given rising COVID-19 cases in some key countries and regions including Europe, India and Brazil.
Even with a wave of new lockdowns in Europe, the agency said it remains confident that the region’s vaccination program will accelerate in the coming months allowing for a boost in mobility in the second half of the year
The market is still concerned over near-term fuel demand as a result of surging COVID-19 cases in some major consuming countries, and now the news that vaccinations with Johnson & Johnson may be suspended temporarily because of rare blood clotting problems in several patients are also weighing on oil prices.
The blockchain brings new financing options to the business market. For example, Bitcoin Cash casino has adapted to only using cryptocurrency. This way, it makes it easier for their customers to deposit and withdraw in a BCH casino. Entrepreneurs have taken note of this and are looking to invest more in crypto than in fiat markets.
Like Our Facebook Page
Latest News on Business Post
- 11 Plc (Mobil Oil) Finally Quits Stock Exchange May 8, 2021
- NGX Index Rises 0.21% as Investors Patronise Value Stocks May 8, 2021
- Fresh Optimism Lifts Oil Market into Positive Territory May 8, 2021
- Moody’s Fears First Bank Financial Health Could be at Risk May 8, 2021
- CSCS Fixes May 18 for 27th AGM in Lagos May 8, 2021
- Super League: UEFA Sanctions Manchester United, Others May 7, 2021
- Union Bank CEO Buys Additional Shares Amidst Acquisition Rumour May 7, 2021
- Ex-Minister Mama Taraba Dies in Egypt May 7, 2021
- Heritage Bank, RTEAN Unveil Insurance Scheme for Travellers May 7, 2021
- NGX Praises Transcorp Hotels Efforts to Boost Investor Confidence May 7, 2021
Economy5 years ago
Kwara Disburses N1.7b For Projects
Technology5 months ago
How To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Feature/OPED1 year ago
Davos was Different this year
Economy3 years ago
FAAC: FG, States, LGs Share N655.18b in January
Economy2 months ago
MBA Forex Blames CBN for Inability to Return Investors’ Funds
General2 years ago
Ikeja Electric Explains How to Get Prepaid Metres via MAP
Banking3 years ago
Sort Codes of GTBank Branches in Nigeria
Feature/OPED2 months ago
COVID and the Growth of Technology in Nigeria