FeaturedHighlightOil & Gas

Oil price hits two year high as avengers renewed threat may affect supply

701

A global oil price surge is set to drive up the cost of petrol through the Christmas holiday season and experts are warning the pain at the bowser is likely to intensify in the New Year.

Oil prices hit their highest mark in two years on Monday, November 6, as the fallout from a purge of dozens of Saudi Arabian officials and royal family members raised expectations of Saudi support for extending OPEC cuts while Nigerian supply was threatened by renewed tensions in the Niger Delta, by calamitous group, Niger Delta Avengers.

“All the militants’ groups in the Niger Delta met today (Saturday) and we have issued a directive that we should go back to our different states, to do everything possible to cripple all the (oil) installations,” said Coalition of Niger Delta Militants leader John Duku.

Brent Crude futures for delivery in January traded as high as $62.81 at the end of the Asian trading session before falling back in early European trading to $62.35, up almost half a percent on their Friday close. US benchmark West Texas Intermediate futures for delivery in Dec. were at $55.91, also up 0.5%.

The gains followed the weekends arrests in Saudi Arabia of 11 princes as well as officials and businessmen, including Princ Alwaleed bin Tala, one of the world’s richest men. The arrests followed an announcement by Saud’s King Salman of a new anti-corruption purge to be headed by his heir Crown Prince Mohammed bin Salman. The crackdown will consolidate Mohammed bin Salman’s grip on power, a notably pro-OPEC force in Saudi politics, making it even more likely that the oil cartel’s production caps will be extended, according to analysts.

OPEC and Russia have withheld about 1.8 million barrels per day of production since the start of the year in a bid to drain bloated oil reserves. That deal is due to run until March 2018, though comments from signatories to the cuts including Saudi Arabai, Iraq and Russia, have all strongly backed an extension.

Outside of Saudi Arabia, oil prices also found support in a dip in US rig count and renewed threats from militants in Nigeria.

US energy companies cut production from eight rigs last week, dropping the number to 729, according to data released late Friday by Baker Hughes. The fall was the biggest since May 2016, when oil prices fell below $50 a barrel.

 

 

 

Leave a comment

Related Articles

Olubolade, ex-Bayelsa military governor, ex-minister slumps, dies in Lagos 

A one-time Military Administrator of Bayelsa State and former Minister of Police...

NPA Rubbishes Allegation of Multi-Billion Naira Graft, Says It’s False

The Nigerian Ports Authority (NPA) has refuted online reports alleging multi-billion naira...

Remo Stars Make History as NPFL Champions

Remo Stars Football Club has been crowned the 2024/25 Nigeria Premier Football...

Arsenal Denies Liverpool Win, Secures Late Draw

By Samuel Akpan with additional agency report In a thrilling match at...

Air Peace Aircraft Damaged, Grounded After Collision with Antelope on Abuja Runway

An Air Peace aircraft has been grounded at the Nnamdi Azikiwe International...

AMVCA 2025: A Night of glamour, greatness and history-making

…nothing is stopping us anymore, we are taking over– Lateef Adedimeji The...

NDLEA Busts Iran-Bound Cocaine Concealed in Woman’s Private Parts, Tummy, Suspect in Port Harcourt

In another milestone effort to combat international drug trafficking, the National Drug...

Insecurity: Northern Governors Throw Weight Behind State Police

In a significant move, the Northern States Governors’ Forum, comprising the governors...

FG Pledges to Meet 2.5m Barrels Per Day Oil Production Target 

The Federal Government has reiterated its commitment to achieving a daily crude...

Governor Turns Luxury Government House into Upscale Hotel

The newly inaugurated Abia State Government House, a project of the immediate...

Insecurity: It is my responsibility to tell President Buhari the truth - Zulum

Borno Gov. Zulum Orders Petrol Sales Halt in Border Towns Amid Insurgency Threat

Borno Gov. Zulum Orders Petrol Sales Halt in Border Towns Amid Insurgency...

Controversy, uncertainty trail Wizkid’s alleged cancelled tour 

Multiple dates on Wizkid’s highly-anticipated Morayo North American tour have been cancelled,...

Many Celebrities Pursue Fame at Others’ Expense, IK Ogbonna Laments

Nollywood actor IK Ogbonna has voiced his disappointment over the growing obsession...

Just in: No extradition process against Simon Ekpa yet, says Justice Minister 

Contrary to some recent media reports, the Federal Government has not initiated...

Dangote Refinery, NNPC Ltd are Partners in Progress, not Competitors – Aliko Dangote

The Nigerian National Petroleum Company Limited (NNPC Ltd) and the Dangote Petroleum...

10 Quick Facts About the New Catholic Pope Leo XIV

1. First Pope born in the United States and first North American...

Kanu’s Broadcasts Incited Violence, Witness Says, Citing Gulak’s Death, Others

A prosecution witness on Thursday told the court in the ongoing trial...

Court admits document EFCC tried to block in Yahaya Bello’s case, adjourns until May 9

A Federal High Court in Abuja on Thursday dismissed the objection of...

Nigeria’s IMF Debt Cleared, Burden Lifted, Signals Economic Revival

Nigeria has officially cleared its debt to the International Monetary Fund (IMF),...