x

Oil prices steady as clouds gather over fuel demand, looser supply curbs

Oil prices were unchanged on Friday, with trading marked by growing uncertainty about global recovery in fuel demand as new COVID-19 cases surge in several countries just as major producers get set to loosen production curbs.

U.S. West Texas Intermediate (WTI) crude futures rose one cent to $40.76 a barrel at 0204 GMT, while Brent crude futures were steady at $43.37 a barrel.

Both were still on track to end the week up slightly.

On Thursday, the U.S. reported at least 75,000 new COVID-19 cases, a new daily record.

Spain and Australia reported their steepest daily jumps in more than two months, cases continued to soar in India and Brazil stepped up lockdown measures.

The two benchmark contracts fell one per cent on Thursday after the Organisation of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, agreed to trim record supply cuts of 9.7 million barrels per day (bpd) imposed earlier this year by some two million bpd from August.

But actual output additions will be closer to 1.1 million bpd, as countries like Iraq – which overproduced compared with their commitments to cut supply in May through July – agreed to bigger reductions in August and September.

Vivek Dhar, commodities analyst at Commonwealth Bank of Australia, said the market took some heart with the agreement for some to compensate for previous non-compliance with commitments at a time when there is uncertainty over demand growth.

“They’re taking those precautions.

“That gives the market confidence that OPEC+ is looking quite closely at those conditions to make sure they don’t push the market in the wrong direction,’’ he said.

Analysts expect the market to remain in the $40-45 a barrel range, with the looming return of some U.S. supply and uncertainty over fuel demand as new lockdowns may be needed to curb the resurgence of COVID-19 cases.

“The problem with the market right now is prices have got to a level where we’re concerned U.S. supply is going to come back,’’ Dhar said. (Reuters/NAN)

Hot this week

Editors Urge Government To Create Safe, Enabling Environment For Journalists

· Ask security agents to find missing Vanguard journalist As...

EXCLUSIVE: Buhari orders probe of Isa Funtua, AMCON over keystone and Etisalat

Following the controversy generated by the leading opposition party,...

6 Signs your boyfriend thinks you are ugly -Take note of No. 2

They say there are three kinds of people; the...

2023: South-East, Middle Belt Forum Endorses Peter Obi

The South-East and Middle Belt Forum has endorsed the...

Oborevwori, Senator Nwoko Hail Igbo Socio-Cultural Group for Tackling Identity Crisis

By Anne Azuka The Igbo Unification Movement, in collaboration with...

Tinubu Declares 9th National Youth Games Open in Delta

By Anne Azuka The 9th National Youth Games kicked off...

PAAU Gets NUC Approval for MBBS Program

By Noah Ocheni, Lokoja The Faculty of Medicine at Prince...

Kaduna: London-Based Philanthropist, Andishu, Lauds Gov. Sani’s Security and Peace Model

By Achadu Gabriel, Kaduna London-based Nigerian businessman and philanthropist, Moses...

Aliyu Flags Off 2025 Tree Planting in Sokoto, Urges Collective Action Against Desertification

By Muhammad Ibrahim, Sokoto Governor Ahmed Aliyu has launched the...

KGIRS Targets Over ₦3bn Monthly Revenue in 2026

By Noah Ocheni, Lokoja The Chairman of the Kogi State...

Plateau Child Protection Network Raises Alarm Over Case of 5-Year-Old Bethel ‘Kawa’

By Israel Adamu, Jos The Plateau State Child Protection Network...

Breaking: Police Invite Senator Adamu Over Alleged Threats to Kaduna Governor’s Life

By Achadu Gabriel, Kaduna The Kaduna State Police Command has...
spot_img

Related Articles

Popular Categories

spot_imgspot_img