Good News for Nigeria: Brent Trades Above $60 as U.S. delays tariffs on Chinese goods

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Owo Arugbo: Ekiti Begins N20,000 Payment To The Elderly As Monthly Stipend For Social Security Scheme

Ekiti State Governor, Dr Kayode Fayemi on Wednesday re-launched the social security Scheme for elderly citizens in the state with,...

PZ Cussons commences entries for Cussons Baby Moments’ 6th season

PZ Cussons has announced the commencement of entries of the 6th season of its eponymous baby competition in Nigeria tagged...
- Advertisement -
- Advertisement -

Oil shot up more than 4 per cent on Tuesday after the U.S. said it would delay the 10 per cent tariff on some Chinese products, including laptops and cell phones. The move eased fears over the fallout from the trade war. 

The delay gives hope to a skittish market that the trade war really won’t go on forever.

Brand Spur reports that for WTI, oil prices had climbed 4.13% to trade at $57.20 as at the time of filing this report. Brent Crude was trading up even more at 4.68%, at $61.31—resuming it’s over $60 per barrel that it had fallen under during the first week of August as the trade war stoked fears of souring oil demand growth.

The international oil benchmark, Brent crude, had tumbled last week Wednesday to $56 per barrel, its lowest level in seven years as the United States-China trade war worries gripped the market. The decline in oil price imposes a serious threat to Nigeria’s economy as the 2019 budget is based on an oil benchmark of $60 per barrel.

Read:  Going to Africa? The Full Guide on How Easy or Difficult it is To Visit All African Countries from Nigeria!

In addition, the Nigerian Bonny Light rose by 4.07 percent or $2.41 on Tuesday to sell at $61.56 per barrel on the international market, while the Nigerian Brass River rose by 1.29 per cent or $0.76 to trade at $59.83 per barrel, with price of the Nigerian Qua Iboe also appreciating by 1.29 per cent or $0.76 to go for $59.88 per barrel.

Read:  Where Has The Risk Premium Gone For Oil? - Report

The further decline in oil prices followed an unexpected build in US crude supplies and fears of lower crude demand due to the deepening trade tensions

Yesterday was the fourth straight day of gains for the oil prices—the previous gain helped along by Saudi Arabia’s chat with other OPEC producers about what additional steps the group could take to stanch the price bleed that sought to undermine not only Saudi Arabia’s budget which relies heavily on oil, but the much-anticipated public listing of its crown jewel, Saudi Aramco.

Read:  Oil Prices in 2019: The factors to watch

Aramco profits fall, but still the most profitable company. Saudi Aramco held its first earnings call with investors on Monday, and also reported profits of $46.9 billion for the first six months of 2019. That was down 12 per cent from the same period a year earlier, the result of lower oil prices. However, that figure still makes Aramco the world’s most profitable company.

In addition to the tariff delay, which will now go into force on December 15, the United States will also be taking some of the items on that tariff list off completely, according to its newest policy document released on Tuesday.

While the list hasn’t been made public, it will include items that will be removed “based on health, safety, national security, and other factors”.

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Ensurity Technologies joins the Microsoft Intelligent Security Association

HYDERABAD, INDIA - Media OutReach - 17 October 2019 - Ensurity Technologies, Hyderabad, India-based cybersecurity company, is pleased to announce that it has joined the...

Hospitality Disruptor Generator Acquires Freehand Hotels In Its Quest to Dominate the Experience Economy in U.S. Market

London-based Queensgate Investments finalizes $400 million purchase of Freehand Hotels from a seller consortium including The Yucaipa Companies and Sydell Group, drastically expanding Generator’s...

FG mulls new tax on Coke, Bigi, other soft drinks

Zainab Ahmed, the minister of finance, says the federal government is considering introducing excise duty on carbonated drinks. The minister made this known while addressing...

“Best Global Brands 2019” – Mercedes-Benz is once again the world’s most valuable luxury car brand

Mercedes-Benz further increased its brand value and is once again the world's most valuable luxury automotive brand. In the latest "Best Global Brands 2019"...

More Articles Like This