Uptick in oil price: Is a recovery in view?

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

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

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

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

Brent futures are up 10% since last week, driven by the news of a vaccine following a decline in global oil demand since the outbreak of COVID. Also, the victory of former Vice President Joe Biden in the US presidential elections has signalled the possibility of a stimulus package to the markets.

Uptick in oil price: Is a recovery in view?
Uptick in oil price: Is a recovery in view? – www.brandspurng.com

Obviously, the market is anticipating that the President-elect would adopt a rather globalist agenda, a contrast to incumbent President’s protectionist stance vis-à-vis trade spats, which has led to the extension of OPEC’s supply cut agreement, weakened global demand, distorted trade flows and ultimately slowed global growth. Again, manufacturing sector readings are up in China, which has been able to contain the virus, as well as in Japan and the US.

The above presents a solid argument for a medium-term recovery in oil prices. However, the near-term outlook remains uncertain. Infections in Europe are rising, and deaths are nearly surpassing the peak of the initial lockdown phase. France, U K and Germany, which are major energy consumers, have now enforced second lockdowns to varying degrees. OPEC + will meet at the end of November to discuss the possibility of ramping up supply. The Vienna based cartel earlier in Q3-2020 revised its demand forecasts for 2021 by 80,000 BPD.

Read Also:  LUKOIL Leader Says New Africa Energy Book Billions At Play Describes Workable Solutions For Africa’s Infrastructure Challenges

The FGN would be watching with interest to see what the forecasts hold for 2021. Oil receipts account for 40% of Nigeria’s dollar inflows, 80% of exports. Foreign Direct Investments, Foreign Portfolio Investments and banking loan-book remain considerably exposed to the sector. It is imperative that in the short-term, higher prices will spur growth and boost recovery.

- Advertisement -
Uptick in oil price: Is a recovery in view? - Brand SpurUptick in oil price: Is a recovery in view? - Brand Spur

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.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  Oil Price Wars: Can Nigeria Survive The Fight?

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

Uptick in oil price: Is a recovery in view? - Brand SpurUptick in oil price: Is a recovery in view? - Brand Spur

Latest News

Jacobson Pharma’s Proposed Spin-off and Separate Listing of JBM (Healthcare) Limited on The Main Board of The Stock Exchange of Hong Kong...

Declaration of Conditional Special Interim Dividend HONG KONG SAR - Media OutReach - 15 January 2021 - Jacobson Pharma Corporation Limited ("Jacobson Pharma"...

Kerry Logistics Network Opens Chemical Logistics Centre in Cangzhou China To Capture Market Potential in Chemical Logistics

HONG KONG SAR - Media OutReach - 15 January 2021 - Kerry Logistics Network Limited ('Kerry Logistics Network'; Stock Code 0636.HK) has opened a logistics centre...

Global Industry Leaders Highlighted Food Safety Issues in Times of Pandemic at the 6th Food Safety Forum

GS1 HK Launches Trusted FoodNet to Promote Information Visibility HONG KONG SAR - Media OutReach - 15 January 2021 - The 6th Food Safety Forum organised by GS1 Hong Kong...

How Might Nigeria’s Investment Cycle Pan Out in 2021?

The COVID-19 pandemic was perhaps humanity's first-ever health and economic crisis in the 21st century that brought the greatest of the nations to their...

Understanding Private Equity and Alternative Investments – FBNQuest

Although there are a variety of options for raising capital and attracting investors, equity is one of the two most sorts after options. It...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Uptick in oil price: Is a recovery in view? - Brand SpurUptick in oil price: Is a recovery in view? - Brand Spur