After months of decline in oil price across the globe, the international oil benchmark, Brent crude, rose on Wednesday to its highest since early March.
The rise in price is said to be caused by a large decline in the United States’ crude inventories and supported by a weak dollar.
Recall the oil price dived to $15.98 per barrel in April, its lowest since June 1999, but has continued to rise in recent months.
Senior OANDA analyst, Craig Erlam, said, the oil sector has benefited from dollar decline.
According to him, “There’s no escaping the benefits of a weaker dollar in the commodity space and oil is certainly basking in its decline,”
The production cuts by the Organisation of Petroleum Exporting Countries and the gradual easing of lockdowns by many countries has also led to the recent changes in oil price.
Nigeria seems to be a beneficial of the rise in price as the Brent, against which the country’s crude is priced, was up $1.51, or 3.4 percent, at $45.94 a barrel by 11:13 a.m. ET.