A former Publicity Secretary of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN), Seyi Gambo, on Thursday said that the crude oil price would soon bounce back.
Gambo said in a telephone interview with the News Agency of Nigeria (NAN) in Lagos that the assertion became imperative following the panicky attitude of some investors.
He said that the growth of oil prices from 59 dollars to more than 60 dollars per barrel recently at the end of trading at New York Mercantile Exchange Market (NYMEX) and the London International Petroleum Exchange Market (IPEX) remains a pointer.
According to him, this is the first time this year that oil prices have risen from a free fall recorded towards the end of 2014, bringing its total gain this week to almost 4 per cent.
The crude oil price growth, he said, was supported by visible signs that deeper industry spending cuts may curb excess supply.
“The rise in the price of crude oil has justified the optimism of experts who urged oil producing nations no to panic, as what was happening was a cyclic matter that would take its natural cause to correct itself.
“This indicates that traders pushed for increase in oil price due to a fall in the U.S. rig counts in 2015, while support of oil growth by Germany’s gross domestic products, as well as plans of a meeting between Greek officials and its creditors from the Euro zone, formed part of the reasons for the rise.
“The price of Brent crude collapsed from $115 in June 2014 to 45.19 dollars, to within the second week of February before the latest upsurge, the lowest in almost six years,” he added.
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