Comprehensive  Ghana Oil and Gas news, information, updates, analysis


News in Brief

Oil prices rebound after falling below $30

10c195b65b09457a65053757f1ebf0d5_LOil prices rebounded in Asia on Wednesday, halting a plunge that saw crude fall below $30 a barrel for the first time in more than 12 years, but analysts warned of further pressure on the commodity.

Investors have an eye on the release later in the day of US commercial crude stockpiles data, which is expected to show another increase, further exacerbating a global supply glut that has hammered the market for 18 months.

US benchmark West Texas Intermediate (WTI) for delivery in February rose 38 cents, or 1.25%, to $30.82 per barrel at around 06:00 GMT. European benchmark Brent rose 26 cents, or 0.84%, to $31.12.

On Tuesday, WTI fell at one point to $29.93, a level last seen in December 2003, although it was given a lift later by a private report pointing to a drop in inventories.

However, experts warned that prices remained fragile.

“The supply and demand landscape for oil continues being bearish as prices continue to take discounts,” Daniel Ang, an analyst with Phillip Futures in Singapore said in a market commentary.

“US oil supply continues to remain strong.”

Bernard Aw, a market strategist with IG Markets Singapore, said the long-term trend is for prices to fall, with the supply glut not showing any let up.

Oil-reliant Opec member Nigeria on Tuesday called for an emergency meeting of the grouping to address collapsing prices, which have rattled world stock markets and hammered energy firms.

The Nigerian petroleum resources minister, Emmanuel Ibe Kachikwu, said he expects an extraordinary meeting of the group in “early March” to discuss the crisis.

“We did say that if it hits the $35 (per barrel level), we will begin to look (at)… an extraordinary meeting,” Kachikwu said at the Gulf Intelligence UAE Energy Forum.

Poorer members of the Organisation of the Petroleum Exporting Countries have been clamouring for a cut in the high production levels in a bid to drive prices higher.

But influential Opec members led by Saudi Arabia have rejected any such move, preferring to fight for market share against rival producers, particularly the United States.

Crude accounts for 90% of Nigeria’s export earnings and 70% of overall government revenue.

Source: http://business.citifmonline.com/2016/01/13/oil-prices-rebound-after-falling-below-30/

Profile photo of Editor
Follow Us

Editor

Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
Profile photo of Editor
Follow Us

Share this article

Leave a reply

Personality of the Month
  • Prof. Thomas Mba Akabzaa Chief Director of Ministry of Petroleum          …
Follow Us Online
Join the Discussions

Summary: Revenue mobilization from the oil sector for Agricultural production in Ghana, a myth or reality?

Agriculture, once considered the backbone of Ghana’s economy recorded a reduction of its contribution to GDP from 45% in 1992…

Responses Add your response


About Us
Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
Events Calendar
<< Aug 2017 >>
MTWTFSS
31 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3
Twitter Activity Stream
 

Partners We are proud to be associated with:

Skip to toolbar