Brent crude futures fell below $76 per barrel on Monday, giving back some gains from last week as global economic uncertainties continued to weigh on the demand outlook.
Major banks have downgraded their GDP growth forecasts for China as latest data pointed to a faltering post-pandemic recovery in the world’s top crude importer, Trade Economics reports.
Meanwhile, the international oil benchmark gained 2.4% last week as interest rate cuts in China and a pause in the US Federal Reserve’s tightening campaign raised hopes for a demand rebound.
Oil markets also got a boost from a sharp decline in the dollar, as a weaker greenback makes oil cheaper for holders of other currencies and drives up risk appetite in the markets.
On the supply side, voluntary output cuts implemented in May by OPEC+ and additional cuts by Saudi Arabia in July kept oil prices supported.
In Nigeria, following the deregulation of the downstream petroleum industry, the Federal Government has begun the process of closing down the Petroleum Equalization Fund.
The PUNCH gathered the meeting held in Abuja between officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and oil marketers on Wednesday deliberated on the closure of the fund.
The officials and marketers discussed the reconciliation of the PEF accounts and plans to close it in the next one month after settlement of about N80 billion it currently owes its members.