Oil hits 2016 high, heads toward $43 per barrel

Photo credit: Bloomberg
Photo credit: Bloomberg

Oil rose above $42 a barrel on Friday, hitting its highest this year and extending a rally into a fourth week on expectations of a production freeze by major exporters.

Brent crude’s front-month contract LCOc1 was up at $42.44 a barrel while U.S. crude CLc1 gained 84 cents to $41.04 a barrel after rising as high as $41.13.

The benchmark had jumped by 4.5 per cent to close the previous session at $40.20.

Oil prices have surged by more than 50 per cent from 12-year lows reached in December.

The rise is bolstered as the Organisation of Petroleum Exporting Countries, OPEC, floated the idea of a production freeze, boosting brent from about $27 and U.S. crude from around $26.

Many analysts think there is still steam in the rally.

“We are leaving the period of low demand and starting to move toward the period when demand increases over the summer,” said Olivier Jakob, oil market analyst at Petromatrix at Zug in Switzerland.

He added that the massive oil glut that had helped to hammer prices last year at last appears to be stabilising.

“We’re moving towards looking at an old surplus, rather than a new one being built up,” he said, adding that it is likely that Brent will stabilize around the mid-$40s.

Analysts said dollar weakness was also lifting oil. The dollar index is down 3.2 per cent so far this month.

A weaker dollar makes oil, which is priced in the U.S. currency, more affordable to holders of other currencies.

OPEC kingpin Saudi Arabia and non-OPEC producers led by Russia will meet on April 17 in the Qatar capital, Doha in an effort to freeze supply.

(Reuters/NAN)

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  • pheliciti

    I thought they said our President was travelling for fun…..

    • Lenz

      Yes o…

      Couple days ago when Premium Times reported that oil prices were beginning to rise globally people on this very forum started abusing them for simply reporting good news that is now reverberating across news outlets the world over…

      Don’t know what is wrong with some Nigerians…

      • pheliciti

        It’s got to a stage where these wailers do not wish any good for Nigeria, just to prove that Buhari isn’t working. We love our country more than they hate it.

        • woman leader

          Yeah the good people of Nigeria are fully in support of Buhari administration

        • Abdallah Mmuaz

          Phelici! Thats true oooo! But it now clearly shows that, they are not Nigerians, who so ever is a true Nigerians, will definitely love to hear good news about it, and so evr want to hear bad news abt nigeria, he shouldn’t even disguise to tell us that he is Nigerian! Sai baba

    • share Idea

      Does he need to travel to stabilise the price crude oil while fuel scarcity in Nigeria is a rocket science for him. Nigeria we hail theee

      • Lenz

        Well, he traveled — and the global oil price is now stabilizing.

        If you have a problem with that then that is YOUR problem… And it is not rocket science. It is your ignorance.

        • Abdallah Mmuaz

          Confirm Lenz!!

    • front man

      Don’t mind them

  • StormRider1

    Where did this people get $43 per barrel oil price from?? Anyways people shouldn’t get carried away as prices are still unstable…. although it’s unlikely the price will fall below $30 again this year.

    • Abdallah Mmuaz

      I t will never fall by God grace! And Nigeria will be great again! Haters

  • Otile

    What Buhari’s aimless trips to Saudi Arabia and Equatorial Guinea are bearing fruits. Duncee has no impact whatsoever on oil price. Believe it or not US and China are the movers and shakers of world economy. Oil is rising today solely because of what is what is happening in the United States. While the dust still settles post Fed, some corners of the market are lapping up a more dovish U.S. central bank. Oil and gold are tearing higher, the dollar continues to get beat up, but the post-Fed…3/17/2016. Oil extends rise after Fed decision, hopes for output curb BY Dan Strumpf, MarketWatch Oil futures extended gains Thursday, a day after the Federal Reserve dialed back its expectations for rate increases and major oil producers set a meeting date to discuss a supply freeze.

    Instead of foolishly rejoicing over oil price increase Northerners should encourage Duncee to diversify Nigerian economy, and discourage total dependence on oil from the Niger Delta.

    • front man

      What is all this rubbish you posted here

    • Abdallah Mmuaz

      Why are u guys pls always haters? Why don’t u wanna see dis country progressing? Ohhh No wonder wee ve heard that many of u are not true Nigerians, some are from cameroun, chard Niger and others, so u can say what so fucking ever! Cos u re definitely going back to your countries when nigeria our beloved country became stable! SAI BABA

  • front man

    Buhari and his Ministers will succeed the present problem facing Nigeria

    • woman leader

      Yes ooo we trust them

  • dpfrank

    Good results are coming from the president ‘s travels, kudos Mr President

  • YUNUSA

    This is good. In GOD we trust.

  • Rommel

    Now oil is above this years benchmark of $38,let’s hope that it holds steady

  • Abdallah Mmuaz

    We Love our country and who so ever hate Nigeria! Will move back to his 4uckng mother Land!!