Crude Oil Price Hits $85.67 Amid Growing Supply Concerns

Crude Oil Price Hits $85.67 Amid Growing Supply Concerns

On March 26, 2024, the price of Brent crude oil witnessed a significant surge to $85.67 per barrel, while the West Texas Intermediate crude rose to $80.88 per barrel, as reported by Reuters…….READ ALSO Petrol Prices Across Nigeria’s 36 States And FCT

The spike in oil prices is primarily attributed to growing apprehensions surrounding global supply constraints, fueled by escalating conflicts in the Middle East and tensions between Russia and Ukraine. Additionally, the dwindling U.S. rig count has further exacerbated upward price pressures.

Hiroyuki Kikukawa, the President of NS Trading, a division of Nissan Securities, emphasized the impact of escalating geopolitical tensions and increased attacks on energy facilities in Russia and Ukraine, alongside diminishing hopes for a ceasefire in the Middle East. These factors have collectively intensified concerns over global oil supply.

Furthermore, the report highlighted Russia’s targeting of critical infrastructure in Ukraine’s western region of Lviv with missiles, as confirmed by Kyiv. This significant air strike, which briefly breached Polish airspace, has added to the prevailing uncertainty.

Meanwhile, Nigeria’s Bonny Light traded at $87.46 per barrel late Friday, indicating a notable uptick in oil prices amidst the prevailing market volatility and geopolitical unrest.