Brent Crude Oil Hits Three Months High on Tuesday on Tighter Supply

Brent Crude Oil Rose on Tighter Supply to N43.49 Per Barrel

Brent crude oil rose to a three-month record high on Tuesday as global supply continues to drop on production cuts and fewer oil rigs.

Despite the rising number of new COVID-19 cases in the US and the rest of the world, the oil market has managed to sustain recent bullish run above $40 per barrel.

Brent Crude oil, the international benchmark for Nigerian oil, rose to $43.49 a barrel at 10:35 a.m Nigerian time on Tuesday, up from $42.22 it traded on Monday.

This is coming after OPEC plus extended 9.7 million barrels per day production cuts to July and continues to force members to comply with agreed quota in order to reduce global oil glut and artificially support falling oil price.

Earlier in the day, crude oil slightly pulled back after White House trade adviser Peter Navarro said the US-China trade deal was over, a statement he later claimed was grossly taken out of context as the deal was still in place and discussions were ongoing.

Peter Navarro issued a statement explaining that he had been “speaking to the lack of trust” in the Chinese administration, the comments had been “taken wildly out of context” and the trade deal remains in place.

The oil market immediately rebounded after Navarro’s statement and continues its three months’ bullish run.

“These comments from Navarro came out of nowhere,” said Edward Moya, senior market analyst at brokerage OANDA. “Energy traders will likely remain sceptical of the relationship between the U.S. and China if the Chinese fail to quickly make up for the shortfall with their promises of agricultural goods (purchases).”