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International oil price benchmark, Brent Crude recorded modest gain of $1.60 yesterday (5.33pm) to trade at $20.60,up from the $19 at which it traded on Tuesday. The $20.60 per barrel oil price, is $9.40 cents below the $30 oil price benchmark of Nigeria’s revised 2020 budget.
The stormy oil markets sent Brent prices crashing to their lowest since 1999 on Wednesday, though a stabilisation of some petrocurrencies and a bounce in European stocks gave investors something buoyant to cling to.
With coronavirus lockdowns slashing demand for everything from petrol to jet fuel, and markets still bloated by a turf war between Saudi Arabia and Russia, places to store the excess supply are running out.
The Energy Information Administration delivered yet another blow to an already struggling industry by reporting a crude oil inventory build of 15 million barrels for the week to April 17.
This comes after a record-breaking 19.2-million-barrel buildup the EIA reported last week, and an API inventory build estimate of 13 million barrels, reported yesterday. Analysts expected the EIA to report an inventory build of a little over 16 million barrels.
