- Global Oil Prices Fall Slightly on Signs of Rising Supply
Oil prices fell on Tuesday during Asian trade session as concerns over rising global supply despite upcoming US-Iran sanctions of November 4th.
Brent Crude oil, against which Nigerian crude is measured, dropped $1.69 a barrel to $75.61 as 4:30 pm Nigerian time.
While U.S West Texas Intermediate was unchanged at $67.04.
Oil prices have been battered by global uncertainty in recent months and both contracts have dropped $10 a barrel from almost four-year high recorded in October.
Rising global output from the world’s largest oil producers, Russia, Saudi Arabia and the United States is helping to replenish global inventories after more than a year of stock draws.
The data released by Refinitv Eikon showed the three nations reached 33 million barrels per day for the first time in September, an increase of 10 million bpd from the usual production.
Still, the financial markets think ‘a great deal’ comment from President Trump regarding China’s trade dispute will help ease global tension and growing uncertainty.
“I think that we will make a great deal with China and it has to be great, because they’ve drained our country,” Trump told FOX News Channel’s “The Ingraham Angle” on Monday.
However, if the two largest economies failed to reach an agreement, negative sentiment could impede global growth, especially with additional U.S tariffs on Chinese imports.
According to Consultancy JBC Energy, low oil price is “probably driven by the wider negative market sentiment amid speculation about additional U.S. tariffs on Chinese imports, should upcoming talks fail to produce the desired results”.
