According to data from Oilprice.com on Thursday, the price of the international crude oil benchmark, Brent, rose amid supply constraints and a drop in United States oil reserves.
Oilprice.com stated that as of 9:16pm Nigerian time, Brent traded at $77.19 after it rose by 1.13% while the US West Texas Intermediate rose by 1.33% to trade at $&3.19 per barrel.
According to data from the US Energy Information Administration, S&P Global Platts reported that US commercial crude stocks fell to its lowest since October 5, 2018 by 3.48 million barrels to 413.98 million barrels.
Senior market analyst at OANDA, Edward Moya, was quoted as saying by Platts, “Crude prices rallied after US stockpiles tumbled to the lowest levels since October 2018.”
Moya explained that oil market essentials were turning bullish as concerns of an economic slowdown in China eased and amid forecasts that supply shortages for natural gas could lead to increased demand for oil.
Similarly, ANZ Research analysts noted according to the report that crude oil prices had increased as supply availability was back in focus, with US oil inventories falling for the seventh consecutive week.
Oilprice.com also reported that Indian oil imports rose in August while its oil production dropped. According to Indian government data as quoted by Economic Times India, the country’s oil imports increased by 23% to 4.2 million barrels per day as the country imported more from the US and Latin American countries.
Trade data from the Nigerian Bureau of Statistics said India is Nigeria’s largest importer of crude oil.