07 September 2018 :Oil prices have enjoyed a happy first week in September, averaging $77.41/bbl mtd, compared to its averages of $74.95/bbl and $73.84/bbl in July and August respectively. This rise has occurred on the back of plunging Iranian oil exports as a result of U.S. sanctions on the Iranian economy, with oil traders shifting focus from the U.S.-China trade war which had earlier moderated prices. However, such heady prices are under threat from production increases elsewhere, with the most recent Platts survey pegging OPEC production at a 10-month high in August and the latest data from the U.S. energy agency suggesting that production there touched 11 mb/d for the first time on record.
Oil demand may be the determining factor for medium-term prices, and OPEC remains bullish on this front, projecting that global oil demand will breach the 100 mb/d mark this year. Analysts note that oil prices continue to outperform forecasts and are a strong positive for the Nigerian economy. Supported by the effect of U.S. sanctions on Iran in particular, analysts expect prices to remain stable for the rest of the year.
Reporting for EasyKobo on Friday , 07 August 2018 in Lagos, Nigeria
Source: Vetiva Capital Management Limited
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