Encouraged by calming U.S.–China tensions that sparked hope throughout world energy markets, Nigeria’s crude oil prices stabilized at about $67 per barrel this week.
As Brent finished at $63.76 per barrel and WTI climbed 2 percent to $59.92, Bonny Light, the country’s flagship crude, traded in line with world markers.
The News Chronicle gathered that cheap purchases and fresh investor confidence following signs of diplomatic contact between Washington and Beijing helped to speed the recovery. Oil traders believe that Chinese President Xi Jinping and U.S. President Donald Trump may find some middle ground at the forthcoming APEC meeting in South Korea, therefore reducing worries of another tariff war.
Trump’s gentler tone, noting that the United States wishes to “help China, not hurt it,” helped stabilize markets disturbed by prior threats of 100 percent tariffs. Earlier Chinese efforts to limit rare earth exports had set off worries about a growing trade war, which caused a sharp crude sell-off.
Goldman Sachs analysts consider recent events to be tactical posturing and forecast both nations may eventually de-escalate. Given the delicate balance between worldwide demand, supply, and OPEC+’s careful output stance, traders claim the rebound is more of a short-term correction than a sustained recovery.
Nigeria reached a milestone domestically with the debut of its first entirely locally owned Floating Storage and Offloading (FSO) vessel near Bonny. The 2.2-million-barrel plant will increase export effectiveness, minimize pipeline losses, and improve crude evacuation from OML 18.
Nigeria’s consistent crude prices and infrastructural improvements give a ray of stability amid worldwide instability as diplomatic approaches between the U.S. and China go on. Still, experts warn that in the coming weeks geopolitical shocks and fluctuating demand may readily challenge this weak comeback.
