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Oil settles at $60/pb, as Nigeria ranked 6th cheapest petrol selling country

Crude oil futures settled on Wednesday after the release of American Petroleum Institute data showing a draw in US crude stocks, with bearish factors generally dominating the market. Brent crude futures settled at $60.53/per barrel, while West Texas Intermediate (WTI) slipped a little, standing at $51.88/per barrel.

Also, Nigeria ranked as the sixth cheapest petrol selling countries in the world, a policy group has revealed in its latest report. Multiple factors are “keeping it range bound, equities are not moving a lot,” Michael Poulsen, senior oil risk manager at Global Risk Management said Wednesday, adding that market players may not want to implement all of their 2019 strategies so soon.

According to analysts citing the API data released Tuesday, US crude stocks experienced a draw of around 600,000 barrels in the week to January 11. Analysts surveyed by Platts had said they expected US commercial crude inventories to edge down 250,000 barrels to 439.49 million barrels in the same period, largely driven by an expected uptick in US exports.

Adding to the bearish pressures, the EIA’s monthly report has predicted that the US will become a consistent net petroleum exporter by the end of 2020.

In its report released on 15 January, the Global Economic Policy Initiative, GEPin, said Nigeria presently ranks number six in the world only behind Venezuela, Sudan, Iran, Kuwait, and Algeria.

The group president Bernard Okri noted that the comparative analysis on global oil prices became necessary following the Yellow Vest movement in France and the recent oil price increment in Zimbabwe.

He explained that oil prices have continually increased in leading economies across the world, crediting President Muhammadu Buhari for stabilizing pump price in Nigeria.

Okri explained that despite the fact Nigeria is not one of the top ten oil-producing countries in the world right now, Nigeria is one of the top ten cheapest selling countries in the world. 

SOURCE: thedailytimes/Opera