-2.1 C
New York City
Friday, December 2, 2022
Home NEWS Nigeria World Oil Prices Hit $58

World Oil Prices Hit $58

[dropcap]O[/dropcap]il prices shot up over four per cent to their highest level since 2015 early on Monday after OPEC and other producers over the weekend in Vienna reached first output cut deal since 2001.

They jointly reduced output in order to rein in oversupply and prop up the market.

picture1Brent sweet crude futures, the international benchmark for oil prices, soared to 57.89 dollars per barrel in overnight trading between Sunday and Monday, its highest level since July 2015.

U.S. West Texas Intermediate (WTI) crude futures also hit a July 2015 high of 54.51 dollars a barrel.

With the deal finally signed after a year,the market’s focus will now switch to compliance with the agreement.

ANZ bank said that Saudi Aramco, Saudi Arabia’s state-controlled oil company, had informed customers that their allocations would be reduced in January 2017, in line with the recent OPEC production cut agreement.”

OPEC has said it will slash output by 1.2 million barrels per day from Jan. 1, with top exporter Saudi Arabia cutting around 486,000 bpd in a bid to end overproduction .

Oversupply has dogged markets for over two years and pushed the economies of many oil exporting countries into crisis.

On Saturday, producers from outside the 13- country OPEC group agreed to reduce output by 558,000 bpd, short of the initial target of 600,000 bpd . (Reuters)

 

Most Popular

Coscharis Motors Partners AIICO and Tangerine on Quality Auto Insurance

ROTIMI ASHER Coscharis Motors, one of the Nigeria’s leading automobile companies, has partnered two reputable insurance companies, AIICO Insurance Plc and Tangerine towards providing cost...

UK insurers Face Watchdog Crackdown for Undervaluing Cars

Britain's financial watchdog on Friday warned insurers against undervaluing cars and other items when customers submit a damage claim and said it was taking...

Lagos Government Commences Issuance of International Driver’s Permit

ROTIMI ASHER The Lagos State Government has concluded plans to commence the issuance of International Driver’s Permit effective from December, 2022. The Director, Vehicle Inspection Service...

Engineering Student Produces Truck in Nigeria

A Ph.D student from the Faculty of Engineering, University of Benin, has produced and showcased a one-tonne utility truck. The vehicle was developed by...
%d bloggers like this: