Fidelity bank banner Bayelsa State banner
Hope rises for Nigeria as oil price hits $56

By News Express on 06/02/2015

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 2,825

Indications emerged that Nigeria and other oil producing countries may have glimmer of hope as oil price, yesterday, rose towards $56 a barrel, recovering from part of the previous session’s drop.

Though some traders and analysts believed that the prospect of oil price recording a further fall is not feasible, having sustained a near six-year low, the development yesterday showed that Brent crude LCOc1 rose $1.57 to $55.73 per barrel.

According to information, crude snapped a four-day winning streak, when the United States of American government said crude inventories increased by 6.3 million barrels, rising for a fourth consecutive week to hit a record high.

While the global market has more than enough crude, a collapse in Libyan production and a raid on an oilfield by gunmen, plus an attack on a tanker off Nigeria renewed concern about threats to supply.

ET, having fallen more than a dollar intra-day earlier, settled 5.5 percent lower on Wednesday. U.S. crude CLc1 added $1.20 to $49.65.

Oil analyst at Petromatrix, Mr. Olivier Jakob, said: “There’s more and more money coming in on the long and the short side, and I think the result of that will probably see increased volatility.

“If we start to have more problems in Nigeria, then it starts to reduce the spare capacity that there is and then it’s harder to make the case that oil should be at $30,” he stated.

Oil began to rise last week from near-six-year lows, in part due to a downturn in U.S. rig activity that could eventually dampen rapid growth in shale oil production, only to tumble on Wednesday.

As other oil traders said the recent increase in price was too soon to expect a sustained price rise, analyst at Commerzbank, Carsten Fritsch, said: “There’s no basis for a sustained recovery at the moment.”

A senior broker at Jefferies Bache, Mr. Christopher Bellew, who also disclosed that he did not expect prolonged gains, stated: “I think prices will consolidate around these sorts of levels before moving lower. It takes a lot of time for fewer rigs to translate into lower oil production.”

A workers’ strike in the United States at nine plants, including seven refineries accounting for 10 percent of the country’s refining capacity, added to concerns over crude demand.

The United Steelworkers union (USW) said a new contract offer was made by lead oil company negotiator Royal Dutch Shell Plc and that it would respond after considering the offer.

•Sourced from Newswatch Times.

Source News Express

Posted 06/02/2015 03:57:29 AM


Share on facebook Yahoo mail icon Gmail icon Share on Google+



REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...


You may also like...
Gallant SARS operatives gun down 4 armed robbers...

Buhari signs 8 bills into law

BJAN signs on Katunga Media for capacity development...

Cross River awards N1.16bn banana farm contract

Dangote to spend $10bn on rice cultivation

Who cleans up Niger Delta mess?

Kidnapped Lebanese construction workers regain freedom

Children sue TB Joshua, Synagogue over father’s death...

How FG intends to navigate Nigeria out of...

Speaking is governing: Mahmud Modibbo Tukur & the...

Nigeria calls on Muslim world to condemn ISIS...

Dapchi Girls Abduction: Police deploys 2,000 personnel to...


Latest News Further notes on political alliances in Nigeria, By Edwin Madunagu As Abia hosts 3rd National Council on Niger Delta Ozil quits Germany’s national team over alleged racism, disrespect Flood threatens Azikiwe, Ekwueme, Obiano, Obi, Soludo’s homes Defection: I will make my position known soon — Saraki Delta APC leadership crisis deepens; faction takes to street in protest Unpaid salaries: Ekiti workers give Fayose 14-day ultimatum Osun PDP Guber: No winner, no vanquished — Adeleke 18 students emerge winners of NNPC Zonal National Science Quiz Competition Why ExxonMobil sacked Spy Police Officers — Management 2019 party primary: Ebonyi South PDP retains incumbents SNEPCo donates ultramodern science labs to Kwara school


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (364,127 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (359,504 views) Shameless Genevieve Nnaji exposes breasts in public (287,926 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (236,217 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (215,687 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (213,133 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (187,300 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (169,288 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (156,700 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (153,500 views) Lagos plane crash: Journalist releases victims’ names (148,269 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (139,313 views)


Categories Advertorials (3) African Press Organisation (81) Art & Literature (52) Business & Economy (3,365) Business Verdict (48) Columnists (890) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (516) Features (617) Global Business Monitor (286) International (2,160) Interview (159) Live Commentary (28) Love Matters (127) News (37,368) Opinion (1,026) Pidgin (10) Politics (5,657) Religion (790) Sports (1,614) Stock Watch (33) AMA & Al Jazeera Global Update


CBN banner

Firstmobile banner




Nigerian detainees send SOS from Osama prison


APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera