By Adedapo Adesanya
Oil prices were pointing down on Tuesday as concerns over tightened restrictions in the United States and Europe outweighed the start of vaccination in the UK and the certainty about the OPEC+ production at least for January.
As a result, the Brent crude dropped 12 cents or 0.25 per cent to sell at $48.67 per barrel while the West Texas Intermediate (WTI) lost 35 cents or 0.76 per cent to trade at $40.41 per barrel.
After rising for most of the past three weeks, due to hopes of a vaccine-induced boost in economic growth and energy demand, oil prices have been down this week.
This is because near-term demand concerns outweigh hopes for the demand outlook in a few months.
The US is now seeing a rise in hospitalisations by almost 2,000 a day and is averaging around as many deaths as during first COVID-19 surge in April.
France is set to miss a goal to end its lockdown next week. The European giant is unlikely to reduce new daily infection numbers to below 5,000 by December 15, the target set by the government as a reason to lift the lockdown on that day while the Bavaria region in Germany is moving into a stricter lockdown until January 5.
Tuesday’s outcome indicated that support from the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) may have been relegated to the sidelines. The group had agreed to reduce supply for next month by half a million in contrast to the earlier volume agreed in April 2020.
Despite the environment, the market will be looking at happenings in the UK, which started its first COVID-19 vaccinations on Tuesday.
Also, there are signs that European demand is recovering after a renewed wave of lockdowns with countries like Poland recording improved road use and fuel consumption.
The market is also looking at renewed tension between China and US after the latter announced sanctions against 14 members of China’s National People’s Congress, the country’s rubber-stamp legislature, as the Trump administration tries to put pressure on the Asian country over its crackdown on dissent in Hong Kong.
Libya has continued to ramp up production just as Iran prepares to raise oil exports in a sign the Islamic Republic expects the US to ease some sanctions under a Joe Biden presidency.
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
- Stock Investors Manage N2bn Gain as Results Dampen Spirits April 23, 2021
- Brent Climbs as Libyan Production Dips April 23, 2021
- Onne Customs Raises Revenue 69.4% to N38.9 billion in Q1 2021 April 22, 2021
- YouTube Launches Inaugural Africa Reading Challenge April 22, 2021
- Audiomack, MTN Develop Data Bundle for Music Streaming April 22, 2021
- FCTA to Reward High Impact Entrepreneurs April 22, 2021
- CSCS Assures Shareholders Sustainable Value, to Pay N1.17 Dividend April 22, 2021
- Fitbit Unveils Device to Track Users’ Fitness, Wellness April 22, 2021
- UK Expresses Willingness to Attract More Investments to Nigeria April 22, 2021
- How to Invest in Stocks in Nigeria: Guide for Beginners April 22, 2021
Economy5 years ago
Kwara Disburses N1.7b For Projects
Technology4 months ago
How To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Economy3 years ago
FAAC: FG, States, LGs Share N655.18b in January
Feature/OPED1 year ago
Davos was Different this year
Feature/OPED1 month ago
COVID and the Growth of Technology in Nigeria
Economy1 month 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