Oil prices back in the $50s as markets expect fresh OPEC deal

crude oil prices

Oil prices rose on Friday as traders expected OPEC-led production cuts to extend beyond the middle of this year.

In the same vein, US crude inventories fell to their lowest levels since February.

International Brent crude futures were at $50.96 per barrel  on Friday, up 19 cents, Or 0.37 percent, from their last close.

US West Texas Intermediate (WTI) crude futures were at 48.01 dollars per barrel, up 18 cents, or 0.38 percent.

The Organisation of Petroleum Exporting Countries (OPEC) and other producers including Russia have pledged to cut output by almost 1.8 million barrels per day (bpd) during the first Half of the year.

READ ALSO  Senators reject bill on electric cars

The negotiations, which were led by Nigeria’s Mohammed Barkindo, the OPEC secretary-general is regarded as one of the most historic deal in the oil cartel’s history.

With crude prices in the $50 territory, Nigeria’s 2017 budget, which was passed on Thursday, is expected to have a smooth sail.

In fact, oil at $50 is expected to reduce the budget deficit by an appreciable lot.     

Copyright 2019 Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.