Oil price trades above $90p/b over supply restrictions

The global benchmark for oil price, crude, Thursday, extended gains to $94.94 from the closing price of $94.36 a barrel in the previous trading session on Wednesday.

The gain, which represents 0.61 per cent, is due to crude supply restrictions and an improved demand outlook.

Also, the American benchmark West Texas Intermediate (WTI) traded at $94.42 per barrel, up 0.79 percent from Wednesday’s close of $93.68 per barrel.

Both benchmarks are trading near their highest levels of the year as shrinking US crude inventories feed a tighter supply outlook.

Industry figures from the international oil market indicate that prices surged on Thursday as data showing greater demand in the US, the world’s largest oil consumer, contributed to fears of tight global supplies.

US commercial crude oil inventories fell by around 2.2 million barrels to 416.3 million barrels, compared to the American Petroleum Institute’s expectation of a rise of around 1.6 million barrels, according to data released by the Energy Information Administration (EIA) on Wednesday.

However, the price of Gasoline crashed by $0.044 or 1.68 percent to N2.555, while Natural Gas gained $0.006 or 0.21 percent to $2.905.

Nigeria’s Qua Iboe and Brass River gained $2.01 each, representing 2.07 and 2.06 percent to close at $99.18 and $99.43 respectively.

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