Friday, April 16, 2021
  • Markets & Companies
    • Stock Market
    • Companies
    • Appointments
    • Commodities
  • Business & Economy
    • Energy
    • Agricultural Economy
    • Insurance & Pensions
    • Aviation
    • Maritime
    • Road Transport
    • Financial Inclusion
    • Investment
    • Manufacturing
    • Consumer Goods
  • INNOVATION
  • EMPIRE
  • OPINION
  • CULTURAL CURRENTS
  • Features
  • AE Magazine
  • CORPORATE RENDEZVOUS
Financial Street is a meeting point for technology, economy, and journalism.
No Result
View All Result
  • Markets & Companies
    • Stock Market
    • Companies
    • Appointments
    • Commodities
  • Business & Economy
    • Energy
    • Agricultural Economy
    • Insurance & Pensions
    • Aviation
    • Maritime
    • Road Transport
    • Financial Inclusion
    • Investment
    • Manufacturing
    • Consumer Goods
  • INNOVATION
  • EMPIRE
  • OPINION
  • CULTURAL CURRENTS
  • Features
  • AE Magazine
  • CORPORATE RENDEZVOUS
Financial Street is a meeting point for technology, economy, and journalism.
No Result
View All Result

Mixed reactions see oil prices take back early gains

Kolawole Onasanya by Kolawole Onasanya
May 19, 2020
in Energy
0
Mixed reactions see oil prices take back early gains
0
SHARES
3
VIEWS
Share on FacebookShare on TwitterShare on LinkedInShare on WhatsApp

It was a mixed experience for oil prices on Tuesday morning as early gains by oil giants pulled to take back the profit gains and forced the prices down the price chart.

Brent crude pulled back from an early gain on profit-taking, while US crude extended its rally amid signs that producers are cutting output as promised just as demand picked up on a resumption of economic activity.

READ ALSO

Nigerian govt apologises over power outage

EITI targets revenue from non-extractive industry 

Brent fell 19 cents, or 0.6%, to $34.62 a barrel by 0351 GMT, after earlier touching its highest since April 9.

Read Also:

  • Curbing price gouging in Nigeria's free market
    Curbing price gouging in Nigeria's free market
  • Nigerian stock market sheds 0.17% on renewed bearish activity 
    Nigerian stock market sheds 0.17% on renewed bearish…
  • Bulls hold sway on Nigerian stock market
    Bulls hold sway on Nigerian stock market

The US West Texas Intermediate crude was up 11 cents, or 0.4%, at $31.93 a barrel, giving up some of its earlier gains. It rose as high as $33.44 earlier in the session, hitting its highest since March 16.

The June WTI contract expires on Tuesday, but there was little sign of a repeat of the historic plunge below zero seen a month ago on the eve of the May contract’s expiry amid signs that demand for crude and derived fuels is recovering from its nadir.

“I would not be surprised to see a short-term pullback as a strength that we’ve seen in crude market the last week was quite extraordinary,” said Michael McCarthy, chief market strategist at CMC Markets.

The market was boosted earlier by signs that output cuts agreed by the Organization of the Petroleum Exporting Countries and others including Russia, a group known as OPEC+, are being implemented on the ground.

OPEC+ has cut its oil exports sharply in the first half of May, companies that track shipments said, suggesting a strong start in complying with a new production cut agreement.

“Investors’ sentiment has improved as OPEC+ are apparently slashing output as they promised for this month, with more voluntary cuts expected in June,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

“At the same time, there is growing optimism that the easing of global (coronavirus) lockdowns will help boost economic activity and fuel demand,” he added.

In further support for prices, the US production is also falling, with crude output from seven major shale formations expected to fall by a record 197,000 barrels per day in June to 7.822 million barrels per day. That would be the lowest since August 2018, according to the US Energy Information Administration.

Still, demand would recover only slowly as some restrictions remain in place and there is a significant risk of repeat outbreaks and lockdowns, Eurasia Group said in a report issued on Monday.

“Given a global recession, cautious consumers, and a later and potentially worse peak of the coronavirus outbreak in emerging markets such as Latin America, Africa, and South Asia, consumption will remain below 2019 levels of 100 million bpd for some time,” it said.

close
Subscribe to our newsletter and join thousands of readers of our financial, economic & investments news blog!
We don't spam with your email

Check your inbox or spam folder to confirm your subscription.

  • Facebook
  • Twitter
  • Pinterest
  • LinkedIn

Tags: Bent crudeCrude oilEnergyoil pricesOil prices gainOil prices peak

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Kolawole Onasanya

Kolawole Onasanya

Related Posts

Financial Street - TUC kicks against planned electricity tariff hike
Energy

Nigerian govt apologises over power outage

April 15, 2021
EITI targets revenue from non-extractive industry 
Energy

EITI targets revenue from non-extractive industry 

April 14, 2021
Bayelsa gov tasks Reps on PIB, N’Delta clean-up
Energy

Bayelsa gov tasks Reps on PIB, N’Delta clean-up

April 13, 2021
Fixing freight rate for PMS hinders deregulation
Energy

1.44 billion litres PMS supplied in January, says NNPC

April 13, 2021
Local contractors get N360m for SPDC projects in Yenagoa
Energy

Local contractors get N360m for SPDC projects in Yenagoa

April 13, 2021
African Energy Chamber projects Africa’s power demand to rise
Energy

PHED to boost power supply with 120,000 meters

April 10, 2021
Next Post
Crude experiences price benchmark since March

Crude experiences price benchmark since March

RECENT STORIES

Nigerian stock market sheds 0.17% on renewed bearish activity 

Nigerian stock market sheds 0.17% on renewed bearish activity 

April 15, 2021
Gombe seals offices of rent defaulters

Gombe seals offices of rent defaulters

April 15, 2021
Navy receives new offshore survey vessel

Navy receives new offshore survey vessel

April 15, 2021
Financial Street - TUC kicks against planned electricity tariff hike

Nigerian govt apologises over power outage

April 15, 2021
Amref establishes commission to review Africa's universal health coverage

IFC seals $300m deal for Africa’s health sector

April 15, 2021
Kenya's economy to grow by 6.4 per cent

Africa’s economy snails behind galloping others

April 15, 2021
renewable energy

Facebook signs renewable energy deal in India

April 15, 2021

TRENDING

  • Adesegun Banjoko, President-elect, National Association of Block Moulders of Nigeria

    Blame govt for high cement price – Banjoko

    0 shares
    Share 0 Tweet 0
  • Professionals need strategy to survive in job market – Funmi Bajulaiye

    2 shares
    Share 0 Tweet 0
  • Urban renewal not just about road construction, rehabilitation – Ezutah

    0 shares
    Share 0 Tweet 0
  • Taking off hassles of car ownership

    0 shares
    Share 0 Tweet 0
  • Jury happy as SuperSport clinch W’Cup broadcast rights

    2 shares
    Share 0 Tweet 0
Financial Street is a meeting point for technology, economy, and journalism.

© Financial Street 2020. All Rights Reserved.

More Links

  • Privacy Policy
  • Terms of Use
  • Contact Us

Follow Us

No Result
View All Result
  • Markets & Companies
    • Stock Market
    • Companies
    • Appointments
    • Commodities
  • Business & Economy
    • Energy
    • Agricultural Economy
    • Insurance & Pensions
    • Aviation
    • Maritime
    • Road Transport
    • Financial Inclusion
    • Investment
    • Manufacturing
    • Consumer Goods
  • INNOVATION
  • EMPIRE
  • OPINION
  • CULTURAL CURRENTS
  • Features
  • AE Magazine
  • CORPORATE RENDEZVOUS