Oil Falls To 62$ As COVID-19 Dims Demand Outlook
The international oil benchmark, Brent crude, dropped the most in nearly two weeks on Monday as growing delays in Europe’s reopening and looming Iranian supply dampened hopes for a swift decline in global inventories.
Brent, against which Nigeria’s oil is priced, depreciated by $2.65 to $62.21 per barrel as of 9:06pm Nigerian time on Monday, while the United States West Texas Intermediate fell by $2.75 to $58.70 per barrel.
The United Kingdom might delay global travels beyond May 17 if COVID-19 infections continue to spread around the world, while Italy also extended some restrictions for travelers, adding further pressure to a recovery in oil consumption.
Iran, the United States and the remaining members in the 2015 nuclear deal are set to have a meeting in Vienna on Tuesday (today) to discuss potentially about resurrecting the agreement, presenting a possible path toward removing sanctions on the Middle Eastern country’s oil exports. Yet, Iran indicated talks won’t make progress without the US fully removing sanctions.
“OPEC+ deciding to phase in production increases over time, when combined with news that potentially there could be more Iranian output, could very well mean that the market perceives there will be an imbalance more than previously,” Bart Melek, head of commodity strategy at TD Securities, was quoted.
