Brent and Nigerian oil blends recorded a rebound to around $78 per barrel on Friday from a low of $70 amid escalating tensions in the Middle East, which heightened fears of supply disruptions.
Particularly, data from Oil.price.com on Friday showed that Brent Crude stood at $78.86 per barrel, WTI Crude at $74.90, Bonny Light ($78.62), Brass River ($80.06) and Qua Iboe ($80.16).
This comes as the Iran and Israel conflict reached a crescendo in the last few days.
The development had led to the steady rise of oil futures.
In early September, the oil market saw a sharp 1 per cent drop in Brent futures to $70.71 per barrel on trading volumes above 7 million units, a decline that pushed Nigeria’s oil blends below the $75 threshold.
However, October has seen a resurgence in oil prices, with Brent futures climbing above $78 per barrel amid concerns about potential supply shortages.
In early September, Brent and Nigerian oil blends dropped below $75 per barrel, with Brent futures hitting a low of $70.71.
Concerns of oversupply drove this decline, as OPEC’s plans to boost production weighed heavily on the market, pulling crude oil futures down further.
In response, stockpiling surged, with U.S. crude inventories rising by 3.9 million barrels to reach 417 million barrels in the final week of the month.
SOURCE: Daily Post