The De-escalation of a trade war could result in a weaker dollar and stronger global growth, which along with International Maritime Organization, IMO, changes to shipping fuel rules could raise the price of Brent oil to $90 a barrel, Bank of America Merrill Lynch said.
.. crude trades at US$71.70 a barrel
OPEC’s crude oil production dropped by more than 500,000 bpd month on month in March, to the lowest since February 2015, as Saudi Arabia followed through its commitment to cut deeper than pledged and Venezuela’s crisis, sanctions, and blackouts hit its supply harder than in previous months.
World stocks hovered just under a six-month high on Tuesday as Brent neared $70 a barrel for the first time since November, Brexit fatigue sapped sterling and the dollar shows signs of gaining strength again.
Oil prices slipped Tuesday, over concerns of a sharp global economic slowdown, as well as oil supply disruptions.Brent crude is now down 30 cents or 0.5% to $66.73 a barrel, while US West Texas Intermediate crude is down 35 cents or 0.6% to $58.69 per barrel.
Oil prices rose on Monday, lifted by comments from Saudi oil minister Khalid al-Falih that an end to OPEC-led supply cuts was unlikely before June and a report showing a fall U.S. drilling activity.
Brent crude oil climbed above $66 a barrel to its highest this year as OPEC-led supply cuts and this week’s announcement of a higher than expected cut by Saudi Arabia encouraged investors.
Against the growing concerns about an economic slowdown, Oil prices stabilized on Wednesday after falling in the previous session when markets were lugged down.
Oil prices slumped to 2018 lows on Friday in thin but volatile trading, dropping over concerns of a global supply overhang amid a bleak economic outlook.
Ugo Amadi with agency report
Oil shot back up following six weeks of losses as speculation of OPEC weighing bigger output cuts overshadowed signs of expanding American crude production.
Managing Director /Chief Executive Officer Mr. Abubakar Suleiman.
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