Oil prices fell on Monday as supplies from Saudi Arabia and Russia rose while economic growth stumbled in Asia amid an escalating trade dispute with the U.S.
Benchmark Brent crude oil LCOc1 fell 1.24 dollars a barrel to a low of $77.99 before recovering to $78.40, down 83 cents, by7.35 GMT.
U.S. light crude CLc1 was 50 cents lower at 73.65 dollars.
Oil prices rose strongly in June, with the U.S. crude contract hitting its highest in years and a hafd years at 74.46 dollars .
But a flurry of U.S. announcements over the weekend unsettled oil markets.
U.S. President Donald Trump tweeted on Saturday that Saudi Arabia’s King Salman bin Abdulaziz Al Saud had agreed to pump more oil, “maybe up to 2,000,000 barrels”.
The White House later walked back on the comments.
Saudi Arabia’s output is up by 700,000 barrels per day (bpd) from May, a Reuters survey showed, and close to its 10.72 million bpd record from November 2016.
Russian output rose to 11.06 million bpd in June from 10.97 million bpd in May, the Energy Ministry said on Monday.
U.S. production C-OUT-T-EIA has soared 30 per cent in the past two years, to 10.9 million bpd, meaning the world’s three biggest oil producers now churn out almost 11 million bpd each, meeting a third of global oil demand.
Also weighing on oil demand are trade disputes between the United States and other major economies including China, the European Union, India and Canada.
Asia’s main economic hubs of China, Japan and South Korea reported a slowdown in export orders in June amid escalating trade disputes with the United States.
“Recurring salvos in the trade war and falling asset prices raise the question of how much tariffs could damage the global economy,” U.S. bank JPMorgan said.
The bank said a “medium-intensity (trade) conflict would likely reduce global economic growth by at least 0.5 per cent, “before accounting for tighter financial conditions and sentiment shocks”.
In spite of the relief from Saudi Arabia and Russia, oil markets remain tense because of unplanned outages from Canada to Venezuela and Libya.
Looming U.S. sanctions against Iran further contribute to expected tightness.
Trump threatened in an interview that aired on Sunday to put sanctions on European companies that do business with Iran.
“The Trump administration’s plan for Iran sanctions is now abundantly clear. They seek to push Iranian exports of crude, condensate, and oil products to zero,” energy consultancy FGE said in a note.
Niger Targets Poorest Communities With N1.2bn World Bank Scheme
The Niger State government has obtained N1.2 billion from the World Bank Assisted Community Service Development Project to improve the...
Nasarawa Upgrades Specialist Hospital
Determined to ensure the wellbeing of residents, the Nasarawa state government has upgraded the only tertiary healthcare hospital in the...
Nigerians in Diaspora : John Oluseun Dabiri An American-Based Nigerian Biophysicist
John Oluseun Dabiri who, was born in 1980, is a Nigerian-American biophysicist, professor of aeronautics and bioengineering, currently at the...
Pan Holds On To Mother Tongue Through Bible Translation
In order not to allow Pan language go extinct, the Pan-speaking natives of Quanpan local government council of Plateau have...
No Plans To Witch-hunt Bauchi’s Outgoing Administration – Gumba
Senator Ibrahim Gumba is chairman of the Transition Committee in Bauchi State. In this interview with BEATRICE GONDYI, he speaks...
Power Play In PDP As Bayelsa Conducts LGPolls
The Bayelsa State Independent Electoral Commission (BSIEC) has fixed July 27 for the conduct of the local government election into...
CRIME17 hours ago
Bandit Attacks: Katsina Emirate Suspends Sallah Durbar
NEWS20 hours ago
Edojobs-Backed Startups Pitch To Investors, Seek To Expand Clientele Base
NEWS19 hours ago
Bagudu Bids Farewell To Commissioners After Valedictory Session
Others20 hours ago
Miracle: Day-Old Baby Buried By Mother, Found Alive 2 Days After
NEWS17 hours ago
Libel: Magu Drags 247Ureport To Court
NEWS16 hours ago
Kano Govt Budgets N119m To Tackle Flood
ENTERTAINMENT2 hours ago
NFVCB Sets Up Panel To Investigate Bobrisky, Movie
Others16 hours ago
Kaduna Govt Spends N142.9bn On Basic Education In 4 Years