- Oil prices largely held on to last week’s gains and rose on Monday, October 23
- The oil price took a shoot up over supply concerns in the Middle East and the United States market
- There are also expectations that the oil price may rise above $60 per barrel soon
Oil prices rose on Monday, October 23, over supply concerns in the Middle East and as the U.S. market showed further signs of tightening while demand in Asia keeps rising.
Brent crude futures, the international benchmark for oil prices, were at 57.84 dollars.
U.S. West Texas Intermediate (WTI) crude futures were at 52.03 dollars per barrel.
NAN reports that the amount of U.S. oil rigs drilling for new production fell by seven to 736 in the week to Oct. 20, the lowest level since June, General Electric Co’s Baker Hughes energy services firm said on Friday. RIG-OL-USA-BHI.
Much will depend on demand to guide prices, with the U.S. market tightening, flows from Iraq reduced due to fighting between government forces and Kurdish militant groups.
Again, production is still being withheld as part of a pact between the Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC producers to tighten the market.
In the main growth areas of Asia, consumption remains strong especially in China and India, the world’s number one and three importers.
India imported a record 4.83 million barrels per day (bpd) of oil in September as several refiners resumed operations after extensive maintenance to meet rising local fuel demand.
The country’s September imports stood 4.2% above this time last year and about 19% more than in August, ship-tracking data from industry sources and Media Analytics showed.
Given the tightening oil market conditions, many analysts expect prices to rise further.
NAIJ.com earlier reported that Nigeria's hope on growing the economy through oil rose as price of oil became steady in the market.
The oil price according to a report by Business Day Online rose to $40 per barrel in March.
The reduction in the output of US production also increased the North American WTI crude benchmark.
Market Survey: Check out what traders said at Nigeria's food basket - on NAIJ.com TV