Once again, Naira falls on the Peer-2-Peer exchange market

By Adedapo Adesanya

Oil slumped below $100 a barrel on Tuesday after losing more than 7% despite the ongoing war in Ukraine and a structurally tight market.

During the session, Brent crude futures lost $8.06 or 7.54% to trade at $98.84 a barrel and US West Texas Intermediate (WTI) crude futures fell $7.59 or 7.37% to $95.42 a barrel.

Last week, prices posted their biggest weekly decline in five months as traders weighed potential improvements in the supply outlook that has been disrupted by Russia’s invasion of Ukraine.

That has continued into the new week so far as the Organization of the Petroleum Exporting Countries (OPEC) said on Tuesday that oil demand in 2022 faces challenges from Russia’s action and the rising inflation as crude prices soared, increasing the likelihood of cuts in its price. forecast of strong demand this year.

In its monthly report, OPEC stuck to its view that global oil demand would increase by 4.15 million barrels per day in 2022 and raised its global demand forecast for its crude.

But OPEC, which just a month ago raised the possibility of a faster demand increase in 2022, said the war in Ukraine and lingering concerns over COVID-19 would negatively impact short term on global growth.

Global oil consumption is expected to surpass the 100 million barrels per day mark in the third quarter, in line with OPEC forecasts last month.

The cartel raised its forecast for total oil use for the year from about 100,000 barrels per day to 100.9 million barrels per day and on an annual basis OPEC said the world had used to last seen over 100 million barrels of oil per day in 2019.

The market also saw a downward trend following the return of Iranian oil to the markets after Russia received guarantees that it could continue to trade with Iran after the lifting of sanctions.

The United States and Canada have banned Russian energy imports, while the United Kingdom has said it will phase out imports from the country.

But other countries in Europe, which depend on Russian oil and gas, have not adopted similar measures.

The resurgence of COVID-19 in China has only added downward pressure on oil markets as the country hit a two-year high of 3,500 cases on Monday, doubling day by day. other.

Strict restrictions have been reintroduced in many major cities, including quarantined Shanghai and Shenzhen, fueling fears that Chinese demand over the next few weeks will fall below stagnant January-February levels.

On the supply front, as oil markets desperately seek additional sources of crude supply, oil majors Eni and Shell in Nigeria simultaneously declared force majeure at the Brass River and Bonny Light terminals, respectively, after an explosion on a link pipeline left both terminals cut off.

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