Oil Price Advances to $31 Per Barrel on Tuesday

• Oil Price Advances to $31 Per Barrel on Tuesday

Brent crude oil, against which Nigerian oil is priced, rose to $31.56 per barrel on Tuesday, up from $26.22 per barrel it opens on Monday.

Oil jumped on reports that more economies will reopen for business this month and the fact that global supply for the commodity drop than expected last week.

Despite President Trump praising the surge in oil prices and support measures put in place by American states to reopen for business, experts warned that the market is still vulnerable but agreed demand for the commodity will increase as more economies and businesses reopen for business.

“The market is still vulnerable but now one thing is clear, the demand bottom is behind us,” Rystad Energy’s head of analysis Per Magnus Nysveen said.

“If you’re a trader and open the window, do you see traffic? Is it noisy? That’s the indication that demand is coming back, that the price rebound is not too far away.”

Swiss bank UBS predicted $45 per barrel for brent this year, saying the easing of restrictions will help balance demand and supply for the commodity in the third quarter. It even projects undersupply in the fourth quarter and predicted $55 per barrel by mid-2021.