By Adedapo Adesanya
After dropping points following earlier gains on Monday, Brent Crude and the West Texas Intermediate (WTI) futures bounced back and returned to gains on Tuesday in the global oil market.
WTI crude recorded its highest recovery in two weeks to trade $54.93 per barrel after it rose by 2.14 percent equivalent to $1.29 from $53.64
Brent Crude, on the other hand, traded at $59.03 per barrel following a gain of $0.91 or 1.57 percent from $58.12 per barrel.
It however wasn’t the case for the OPEC Basket and the Nigerian Bonny Light as both recorded drops further below $60 on Tuesday.
The OPEC Basket traded at $59.18 per barrel, after it dropped by $0.49 or 0.82 percent from $59.67 per barrel earlier in the day, while the Bonny Light followed the same trend and traded at $59.07 per barrel after losing $0.27 or 0.46 percent following an earlier cost of $59.34 per barrel.
Other Nigerian Crude listed, Qua Iboe and Brass River both saw increases on Tuesday as Qua Iboe traded at $59.72 per barrel from $59.62 and rising 0. 17 percent. Brass River also rose by 0.17 percent and gained $0.10 to trade at $59.67 per barrel.
U.S.-China trade-war fears were also more tempered Tuesday, and prospects for a deal that would allow Iran to resume some of its crude exports appeared to dim.
Meanwhile, experts revealed that risks for oil continue to center on the potential for trade barriers between the world’s two largest economies [the U.S. and China] to undermine demand growth and trigger global recession, which would likely hit a crude market dependent on emerging market demand especially hard.
Dipo Olowookere