Brent crude’s price was $84.21 a barrel at 6:17 AM on Friday, October 6, according to an early analysis of oil prices.
Reuters reported that even though oil prices rose on Friday, they appeared to be headed for their biggest weekly decrease since March.
This increase was accompanied by worries brought on by a sell-off in the US bond market. These worries included the possibility of a global economic slowdown and the impending threat of a significant drop in fuel demand.
The report stated,” On Friday, Brent futures were up 26 cents, or 0.3%, at $84.33 at 0358 GMT, while U.S. West Texas Intermediate crude futures were up 28 cents, or 0.3%, at $82.59, recovering slightly from a 2% decline on Thursday.
Given that the oil market will stay tight in the near future, buyers are beginning to draw in after the worst week for petroleum since March.
Recall that on September 28, the price of Brent crude reached a record high of $97.24 per barrel, which had not been attained since November 2022.
A large increase in demand and a noticeable decrease in the world’s supply of crude oil served as the foundation for this significant price increase.
It’s critical to emphasize the crucial contributions Saudi Arabia and Russia made to this upsurge.
Both countries had already announced oil production cuts that would last through the end of 2023, with monthly assessments to determine the state of the market.
While the repercussions of the global crude price hikes from last week are still having a significant impact on the Nigerian sector. The National President, Bennett Korie, stated that Nigerian depots are out of stock of petroleum products due to the increase in landing fees at N720 per litre during this week’s meeting of the National Executive Council of the Natural Oil and Gas Suppliers Association of Nigeria.
He claimed that depot owners are battling rising crude oil prices and fluctuating exchange rates.
He also stated that because bank loans have such high-interest rates, depot owners find it difficult to continue their business.
The owners of fueling stations, which struggle to raise the money needed to buy goods for their retail locations, are among the hardest-hit companies.
Independent and large marketers are both struggling financially, which is putting a negative light on the overall petroleum distribution sector.
