Crude oil prices dip below $70 amid crude supply concerns   

13 November 2018 : Brent crude price hit $69.38 this morning as concerns over higher than-expected global crude oil supply and an intensifying trade war continues to drag prices. In recent weeks, Brent prices have reversed direction, as the market has begun to doubt the effect of the sanctions in curtailing supply due to i) higher than expected production from OPEC, allies and the U.S. and more importantly ii) lackluster enforcement of the sanctions from the U.S. (the U.S. granted trade waivers to certain countries to resume trade with Iran). Amid all this, Brent spot price declined by almost $10 in October (from $84.98 at month open, to $75.47 at month close) and has continued to fall at an alarming rate. Analysts note that this continued drop in the price of crude oil could have a direct impact on the fiscal position of Nigeria. Luckily, recent statements from Saudi Arabia’s Energy minister suggest that OPEC might be willing to double down on cuts to drive prices back up. 

Reporting for EasyKobo on Tuesday , 13 November 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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