16 August 2018 : Oil prices have declined 3% so far in August, with brent closing at $70.51/bbl yesterday. The bearish turn has been driven by escalating trade tensions between the United States (U.S.) and China, with both countries threatening to impose tariffs on another set of imports. Although global economic growth has purred on, trade tensions pose a substantial threat to medium term growth outlook, thus having an adverse impact on oil demand. 

Meanwhile, OPEC data shows a slight rise in production between June and July, and this has been matched by expanding U.S. output in the early weeks in August to further weigh on prices. The moderation in oil prices in H2’18 is unsurprising as analysts had anticipated prices to decline from H1’18 average of $71.16/bbl on the back of expanding global supply and rising trade tensions. 

Reporting for EasyKobo on Thursday ,16 August 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited