Crude oil rose slightly on Friday morning as concerns over geopolitical tensions and supplied disruptions caused by cold weather in the U.S. overshadowed the slow Chinese growth report.
Brent crude oil, the international benchmark for Nigerian crude oil, rose by 2 cents to $79.12 a barrel at 07:15 am Nigerian time. While the U.S. West Texas Intermediate crude oil inched higher by 13 cents to $74.21.
On Thursday, Brent crude oil gained 2% after the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) raised their demand growth forecast for the year.
The IEA projected that global crude oil consumption will increase by 1.24 million barrels per day (mbpd) while OPEC saw 2.25mbpd growth in the new year.
Still, global uncertainty remains high, especially with the series of ongoing attacks on the Red Sea and Pakistan’s retaliatory attack on Iran two days ago.
“As tensions in the Middle East are spreading, traders don’t want to take short positions, but they are also cautious about continuing to build long positions as China’s economic recovery remains slow,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.