Sep 11 (Lagos) - Crude oil prices recovered above $66 a barrel in New York while Brent crude oil prices were trying to re-claim the $70 a barrel mark at the time of writing this article.
The swift decline in crude oil prices has stakeholders worried going into the last quarter of the year. Both the candidates for US Presidency have expressed their desire to allow 'fracking' to boost US crude oil output which enables the Country to control crude oil prices even more than the OPEC+ Countries.
Russia continues to supply crude to major consumer Countries China and India at prices which may be below the global prices or have their own terms and that puts another problem for other crude oil producing Countries who also have to cut their prices to supply the Asian giants.
We could get some uptick if OPEC announces further production cuts like they have announced in the recent past. Middle east already has a lot of conflicts going on and for crude oil prices to be at these levels definitely adds another wall of worry for analysts. WTI crude oil prices are at a 3 year low while the Brent price is at a two year low just as the US elections are approaching.
With the US Government focused on reducing inflation, the lower oil prices would certainly provide the enabling environment for that. As we have seen in Nigeria, rising fuel pump price leads to more inflation in other items.
reporting for easykobo.com