Thursday, February 2, 2023
No Result
View All Result
SUBSCRIBE
eNaira Online News
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
eNaira Online News
No Result
View All Result

Oil prices down on Friday as OPEC+ increases production

by e-Naira Online News
June 3, 2022
in Capital Market
Reading Time: 3 mins read
A A
0
Home Capital Market
Share on FacebookShare on Twitter


The prices of the black liquid are down at the start of the London session on Friday as the market is reacting to the decision of the Organization of Petroleum Exporting Countries and its allies, an oil cartel known as the OPEC+, to increase oil production in the market.

However, there are still pushbacks from bulls as investors questioned whether the incremental output would make up for lost Russian supply and meet China’s growing demand amid easing COVID restrictions.

The global benchmark, the Brent crude oil futures is down 0.79%, currently trading at $116.66 per barrel as of the time of this writing while the United States benchmark, the West Texas Intermediate (WTI) crude futures is down 0.92%, currently trading $115.80 a barrel.

What you should know

  • A decision was made on Thursday by the OPEC+ to boost output by 648,000 barrels per day (bpd) in July and August, instead of by 432,000 bpd as previously agreed.
  • The increases were divided proportionally across the member countries, but with Russia included in the pact and members such as Angola and Nigeria already failing to meet their targets, analysts said the supply increase was likely to be less than the announced volume.
  • ANZ Research analysts said in a note that, “The fact that Russia was left in the group suggests that production from the alliance will continue to struggle to meet even this modest increase in quota rises.”
  • They further added that Russian output has already dropped by 1 million bpd since its invasion of Ukraine, which Moscow calls a “special military operation”, and is likely to fall even further as the European Union’s ban on Russian oil kicks in.
  • On the pushback by bulls, SPI Asset Management Managing Partner Stephen Innes had this to say, “To put it another way, traders think the incremental increase is too small relative to the growing downside supply risks from the EU embargo amid an expected increased demand from China.”
  • With daily COVID-19 cases falling, China’s financial hub Shanghai and the capital, Beijing, have relaxed COVID-19 restrictions this week. The central Chinese government vowed broad support to stimulate the country’s economy, which is expected to target high fuel intensity sectors such as infrastructure and property construction.
  • This indicates that the bearish reaction we are seeing in the market today may be short-lived as more demand for oil on the back of China opening up its economy is coming into the market analysts warned, though, of downside risks to oil demand and prices, as Beijing has not changed its stance on COVID-19 rules. For example, analysts from National Australia Bank said in a note that, “China’s re-opening from COVID lockdowns is positive for demand for now but the country retains a zero-COVID policy so snap lockdowns can quickly erode this impact.”

Although Brent is on track to fall for the week, however, WTI is still on course for its sixth weekly gain as U.S. supply is seen as very tight, prompting talk of fuel export curbs or a windfall profits tax on oil and gas producers. Government data on Thursday showed U.S. crude stockpiles fell much more than expected in the week to May 27 and gasoline inventories fell, defying expectations for an increase.

Related



Source link

Tags: FridayIncreasesoilOPECpricesProduction
Previous Post

274 million units of FBN Holding Shares worth N4 billion cross on the Exchange

Next Post

3 Big Hooks Businesses Use to Attract and Retain Customers

Related Posts

Capital Market

Seplat, Nahco, others cause market’s positive start to February

by e-Naira Online News
February 1, 2023
Capital Market

NGX closes positive as investors gain N142 billion

by e-Naira Online News
February 1, 2023
Capital Market

NGX closes January positive with N44 billion gains — Business — The Guardian Nigeria News – Nigeria and World News

by e-Naira Online News
February 1, 2023
Capital Market

Bourse closes bullish with market cap up N44m – Businessamlive

by e-Naira Online News
January 31, 2023
Capital Market

International Organization of Securities Commissions revises its 2011 principles 

by e-Naira Online News
January 31, 2023
Next Post

3 Big Hooks Businesses Use to Attract and Retain Customers

Dollar To Naira Exchange Rate Today (Fri. June 3, 2022)

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

British American Tobacco earns alliance for Water Stew — Opinion — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

Crypto Bank Custodia Denied Membership in US Federal Reserve System – Finance Bitcoin News

January 29, 2023

CAP full year PBT rises by 79% to N3.1bn

January 27, 2023

UNCTAD, Islamic Development Bank unite over sustainable investment — Business — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

Guinness grows half year gross profit by 16%

January 27, 2023

Nigeria, others to meet over development in oil sector | The Guardian Nigeria News

January 27, 2023

Vitafoam Plc advocates special FX window for manufacturing sector

January 28, 2023

NIMASA plots CVFF disbursement strategy with banks — Business — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

Two Stocks Trigger 0.05% Loss At Unlisted Stock Exchange

February 2, 2023

Tinubu distancing self from APC’s failure —Atiku’s aide

February 2, 2023

Why rail sector remains moribund, has no profit in 59 years | The Guardian Nigeria News

February 2, 2023

Nigerian universities and the noise of advancing ideas

February 2, 2023

Moody’s downgrades Nigerian banks’ rating

February 1, 2023

8 Black Financial Influencers You Ought to Follow

February 1, 2023

Despite deadline extension, crowds besiege banks amid scarcity of new notes

February 1, 2023

Federal Reserve Raises Benchmark Interest Rate by 0.25%, Disinflationary Process ‘Early,’ Says Powell  – Economics Bitcoin News

February 1, 2023

Get the free newsletter

eNaira Online News

Get the latest news and follow the coverage of eNaira, Business & Financial, Stock Market, Analysis, and more from the trusted sources.

CATEGORIES

  • Banking
  • Business
  • Capital Market
  • Companies
  • Crypto
  • eNaira
  • Finance
  • Opinion
  • Personal Finance
  • Real estate
  • Uncategorized
No Result
View All Result

GET THE FREE NEWSLETTER

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.