Skip to main content

Oil steadies near $57


By Sebastine Obasi, with agency report
Oil steadied close to $57 per barrel, yesterday, as rising tensions between the United States and Iran and Organisation of Petroleum Exporting Countries, OPEC, supply cuts were countered by ample inventories and signs that higher prices will revive U.S. output.

U.S. energy companies added oil rigs for a 13th week in the last 14, data showed last Friday. Despite the OPEC cuts, U.S. crude inventories increased more than expected last week. Benchmark Brent crude traded at $56.75 a barrel, down 6 cents, while U.S. crude was up 4 cents at $53.87.

“The tug-of-war between oil bulls and bears continued last week and there are no clear signs who could turn out to be the winner,” said Tamas Varga of oil broker PVM.

“The result is a range-bound market where buyers shy away on a pop over $57 basis Brent but they feel a dip to the $54-level is an attractive purchase.”

Tension between Tehran and Washington has risen since an Iranian missile test which prompted U.S. President Donald Trump’s administration last week to impose sanctions on individuals and entities linked to the Revolutionary Guards.

However, a Revolutionary Guards commander said at the weekend Iran would use its missiles if its security is under threat.

“The move by the U.S. to impose new restrictions on Iran does raise the risk of further tensions disrupting (oil) supply,” ANZ bank said.

Iran, OPEC’s third-largest producer, has been raising output gradually since most international sanctions over its nuclear programme were lifted in 2016. Tehran is exempt from OPEC’s plan to cut supplies alongside Russia and other independent producers, which started on January 1 and calls for reductions of almost 1.8 million barrels per day.

The OPEC members included in the move have implemented at least 80 percent so far, according to a Reuters survey and analysts. Russia has cut output by about 100,000 barrel per day, bpd and plans to deepen the reduction to 300,000 by the end of April. With output being cut, more investors are betting on rising prices despite indicators such as the Baker Hughes rig count pointing to increased U.S. supply.

Investors were said to have raised their net long U.S. crude futures and options positions in the week to January 31 to a record 412,380 lots, the Commodity Futures Trading Commission said on Friday.

Source:http://vanguardngr.com

Comments

Post a Comment

Popular posts from this blog

Nigeria Army To Recruit 12,000 Soldiers - Buratai

Chief of Army Staff, COAS, Lt. Gen. Tukur Yusuf Buratai has disclosed that the Nigeria Army would recruit 12,000 men in 2017 to help fight insurgents and other uprisings across the country. Buratai was speaking during a budget defence session with the House of Representatives Committee on Army. According to him, the recruitment exercise would take place after the Army’s 2017 budget proposal of N152.8 billion is approved. He further revealed that the exercise would be in two batches with 6,000 men first and another 6,000 later. The army chief further explained that the Army was currently engaged in different operations in almost all the states of the federation, combating criminalities such as kidnapping, terrorism, pipeline vandalism, cattle rustling, among others. He complained that delay in release of funds was frustrating military operations nationwide, adding that the morale of troops must be boosted regularly. http://www.newshelm.com/2017/02/nigeria-army-to-recrui...
Post a Comment
Read more

Buhari’s Signature Forged To Sell $19m Crude Oil To China

President Muhammadu Buhari’s signature has been allegedly forged in order to sell $19 million worth of crude oil in China according to a House of Representatives member, Ehiozuwa Agbonayinma Agbonayinma also accused the Nigerian National Petroleum Corporation (NNPC) of gross corruption while appearing on Channels TV. “In this letter here, this is not President Buhari’s signature but it was forged by our people – by Nigerians who wanted to sell the crude in China worth about $19 million,” he said. “I tell you the truth, the .Attorney-General of the Federation (AGF) is also aware. We are working day and night to also do what is needed to get it right because he (the AGF) is the custodian of the laws in the nation “So, I’m saying I must tell you that the corruption in this country didn’t just start yesterday. It is a cancer, and to cure cancer, you need a radical approach getting the radical approach in this case means you have to step on peoples’ toes, which might affect those ...
Post a Comment
Read more

Soldiers arrest suspected robbery kingpins in Abia

Soldiers of the 14 Brigade, Ohafia, Abia State has arrested two suspected robbery kingpins who have allegedly been terrorizing motorists along Opobo – Azumini highway, in Ukwa East council area. It was gathered that the suspected robbery kingpin, Victor John and Nsikak Johnson, were nabbed by soldiers at a checkpoint along Azumini highway and handed over to Abia State Police Command. The state Commissioner of Police, Mr. Leye Oyebade, who confirmed the handover of the suspects to the police, said, “The synergy of the Abia State Police Command with sister agencies paid off, when officers of the Nigerian Army, 14 Brigade, Ohafia, on checkpoint at Azumini Road in Ukwa East, arrested the suspects and handed over to the operatives of the Anti-Kidnapping Section of the State Criminal and Intelligence Department. They confessed to the crime and effort is being intensified to arrest other members of their gang.”
Post a Comment
Read more