Adedapo Adesanya
By Adedapo Adesanya
Major crude oil listed on the international market recorded increases on Tuesday, July 30, 2019, one of which is the Nigerian Bonny Light which saw a 46 Cents increase equivalent to 0.72 percent rise to trade at $65 per barrel.
The United States of America’s West Texas Intermediate (WTI) Crude also recorded increase of $1.47 Cents or 2.58 percent change to trade for $58 per barrel, while the Brent Crude was not exempted from the boom as it saw a $1.01 equivalent to 1.59 percent to trade at $65 per barrel.
Analysts said the rise in crude oil futures was largely on expectations that the US Federal Reserve will cut interest rates on Wednesday.
Recently, the U.S President Donald Trump said a small rate cut “is not enough”.
Economic growth in the United States slowed less than expected in the second quarter, strengthening the outlook for oil consumption but, elsewhere, disappointing economic data has increased concerns about slower growth.
U.S and Chinese negotiators also meet this week for their first in-person talks since agreeing to a truce to their trade dispute at a Group of 20 meeting last month.
However, expectations for progress during the two-day Shanghai meeting are low, so officials and businesses hope Washington and Beijing can at least detail commitments for “goodwill” gestures and clear the path for future negotiations.
Supply risks are still a concern as tensions remained high around the Strait of Hormuz, through which about a fifth of the world’s oil passes.
BP has not taken any of its own oil tankers through the strait since a July 10 attempt by Iran to seize one of its vessels, the British company’s Chief Financial Officer Brian Gilvary said on Tuesday.
Tensions 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 capture of an Iranian tanker by British forces near Gibraltar.
