-2.1 C
New York City
Sunday, September 24, 2023
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

Colour Blind Visitors Get Special Glasses at Mercedes-Benz Museum

Automotive history is diverse and colourful. This is also to be understood quite literally, as the fascinating colours, shades and contrasts in the Mercedes-Benz...

Bid for 2030 World Expo: Hyundai Showcases Art Cars in New York

Towards supporting the South Korean city of Busan’s bid to host the 2030 World Expo, Hyundai Motor Group is planning exhibition and road tour...

Nigeria’s Oil Revenue Rises by N188.71b

Nigeria’s earnings from crude oil sales increased by N188.7 billion in August 2023 due to the rise in the production of the product by...

Oil Prices Extend Gains toward $95 on Tight Supply

Global oil benchmark Brent crude neared $95 a barrel on Monday, with investors focused on the prospect of a widening supply deficit in the...
%d bloggers like this: