By Adedapo Adesanya
The prices of the Brent Crude oil saw a 0.63 percent increase or 40 Cents to peak at $63.77 at the global market on Monday, July 29, 2019. In the same vein, the West Texas International (WTI) crude oil recorded 83 Cents or 1.48 percent change to rise to $57 per barrel on the market.
According to reports by CNBC on Monday, U.S. and Chinese negotiators are expected to meet this week for their first in-person talks since a G20 truce last month, but expectations are low after President Donald Trump said China might not want to sign a trade deal until after the 2020 U.S. election.
“On the trade front, expectations may be low ahead of renewed Sino-U.S. talks, but any positive echoes this week will lift market sentiment,” said BNP Paribas global oil strategist, Harry Tchilinguirian.
Crude prices were also supported by supply risk as tensions remained high around the Strait of Hormuz, through which about a fifth of the world’s oil passes.
Tensions have spiked between Iran and the West after Iranian commandos seized a British-flagged oil tanker in the Gulf this month in apparent retaliation for the seizure of an Iranian tanker by British forces near Gibraltar.
Britain told Iran that if it wants to “come out of the dark” it must follow international rules and release the British-flagged tanker.
With these tensions, producers of this highly prized commodity, including Nigeria, will continue to smile to the bank as the prices continue to develop wings for a smooth ride north.
Dipo Olowookere