07 August 2018 ( Lagos ) : Global oil prices picked up on Tuesday as Brent broke the $74/bbl barrier for the first time in August following reports that Saudi Arabian production dipped in July. The expectation was that Saudi Arabia would ramp up production further in July and contribute a majority of OPEC’s planned 1 mb/d production increase, but early estimates suggest that production fell by nearly 0.2 mb/d in the Middle Eastern country. 

In addition, U.S. sanctions on Iran take effect this week, putting Iranian oil exports at risk. We recall that following the imposition of the previous sanctions, Iranian production slumped by more than half as the country struggled to find buyers for its crude. Given these developments, particularly the U.S.-Iran dispute, the near term outlook for oil prices is more positive, and Brent crude could reach the $75/bbl mark last attained in early July. 

Reporting for EasyKobo on Tuesday ,07 August 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited