By Justice Derefaka
Oil prices climbed after the International Energy Agency (IEA) bumped up its 2020 demand forecast but record-breaking new coronavirus cases in the United States tempered expectations for a fast recovery in fuel consumption.
Prices also found support after data showed U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for a 10th week in a row.
A strong stock market also boosted oil prices. A slate of economic data, including a record monthly payrolls addition, pointed to a revival in U.S. business activity in June.
The Paris-based IEA raised its demand forecast to 92.1 million barrels per day (bpd), up 400,000 bpd from its outlook last month.
Still, more than 60,500 new COVID-19 cases were reported in the United States on Thursday, a daily record and the highest daily count for any country since the pathogen emerged in China last year.
Prices had dropped early in the session after Libya National Oil Corporation announced it had lifted its force majeure on all oil exports after a half-year blockade by eastern forces.
“The expected re-start of Libyan exports will only add to the vulnerability of the OPEC+ production restraint in keeping the energy complex heavily reliant upon a renewed expansion in risk appetite for any advances back to around this week’s highs,” said Jim Ritterbusch, president of Ritterbusch and Associates.
Oil inventories remain bloated due to the evaporation of demand for fuel during the initial outbreak.
Mounting tension between the United States and China also pressured prices. China said it would impose reciprocal measures in response to U.S. sanctions on Chinese officials over alleged human rights abuses against the Uighur Muslim minority.
Nigerian crude differentials are likely to weaken due to competing supplies, traders said on Friday, while Angolan crude remained in ample supply for August loading.
* The lifting of force majeure on exports of Libyan crude will likely weigh on sold prices, traders said. LONDON, July 10 (Reuters) – Nigerian crude differentials are likely to weaken due to competing supplies, traders said on Friday, while Angolan crude remained in ample supply for August loading.
NIGERIA
* The lifting of force majeure on exports of Libyan crude will likely weigh on sold prices, traders said. (Full Story)
* Sales of U.S. crude into Europe have also mopped up some of the buying interest for Nigerian grades, traders said.
* Nigerian offers were not heard to have come down on Friday nonetheless, with sellers of Bonny Light and Qua Iboe still seeking more than dated Brent plus $1.00.
* Sales of U.S. crude into Europe have also mopped up some of the buying interest for Nigerian grades, traders said.
* Nigerian offers were not heard to have come down on Friday nonetheless, with sellers of Bonny Light and Qua Iboe still seeking more than dated Brent plus $1.00.
Prices are as follows:
(1)Dated Brent =$43/120/ bbl (0.495)
(2)Bonny Light =$43.050/bbl (0.445)
(3)QuaIboe =$43.100 /bbl (0.435)
(4)Forcados =$43.150 /bbl (0.445)
Stay Safe and have a wonderful week.