Oil rebounded on Wednesday following a report that the US stockpile dropped to its biggest one-week low this year.

The US crude inventories dropped by 5.2 million barrels last week, according to the US Energy Information Administration. This is more than the 1.8 million-barrel predicted by analysts.

The Brent crude oil climbed 3 percent to $50.27 per barrel as at 6:15 Nigerian time. While, the US West Texas Intermediate oil surged to $47.44 a barrel.

However, analysts have said it is hard to see how this one-off drop in US production would change oil outlook and ease investors’ concerns going forward.

“It is difficult to see how the day’s gains last,” said a partner at hedge fund Again Capital in New York, John Kilduff. “US crude oil production is now solidly above 9.3 million barrels per day with more to come, and refined product, especially for gasoline, is oddly weak.”

Brent, against which half of the world’s oil is priced, has endured a volatile past, plunging from more than $100 a barrel in 2014 to $26 in February 2016.

While, it has since recovered mildly, there were concerns regarding how OPEC would sustain current market price in the face of rising U.S. production.

Experts have said other fundamentals within OPEC member nations have to be addressed before another successful consensus could be reached.

For instance, a Foreign Exchange Research Analysts at Investors King Ltd., Samed Olukoya said: “The rising oil production in Libya and Nigeria could worsen current progress as both nations were exempted from the ongoing production cut.”

The weakness in the oil price has impacted the oil sector, resulting in about 400,000 job cut globally, while investment in the sector is at a record low.

http://investorsking.com/oil-rebounds-50-us-stockpile-drops/

U.S

The era of oil selling above $80pb is gone Nigerians be wise in your capital spending.

Remove oil and this country will be gone....
The only thing that unite us as a country is OIL...

Shey na Trump talk say dem get the same agenda with Buhari; Ehn make dem continue nah

K. Next...

I am not understanding...

THIS MEANS LESS EXCUSES

If only the proceeds of oil can be used to diversify our economy especially into tourism like Dubai, but we will rather use the agriculture cliché, as a waste pipe for siphoning our wealth and the wild goose chase for oil exploration in the arid and dry north!

J

Hope we can take advantage of the increase in price in correspondence with production to improve the country's infrastructural deficit and not seen as a way of stealing money to be used for next election.
GOD bless Nigeria

Is it a mere coincidence that things look good for Nigeria whenever osibanjo takes centre stage?

Iceman2017:
Remove oil and this country will be gone....
The only thing that unite us as a country is OIL...

No sir
God Is The One Holding This Country Together

Oyel money....like my SE will call it....Honestly this resource has brought more harm than good and to worse the whole thing....it has aided the worst kind of corruption ever seen in human activities....

Isn't this a good news?

Noted, BTW sum1 shld tell Mourinho he must do all he can tonight to qualify and eventually will the Europa Cup oooo.

naija

I'm not hondastanding

many wont understand

Sunnycliff:
If only the proceeds of oil can be used to diversify our economy especially into tourism like Dubai, but we will rather use the agriculture cliché, as a waste pipe for siphoning our wealth and the wild goose chase for oil exploration in the arid and dry north!

Africans always think backwards.
when the whites were making faster guns,we were looking for stronger gun charm

Very good. Nigerians will be happy about this except ipads.

iceberryose:
THIS MEANS LESS EXCUSES

Sorry to burst your bubble but it's not enough.. The nation needs oil price to be at least 70-80$ before a semblance of comfort can be attained.... This price is barely scratching the surface...?

Best way to avoid this heart attack each time oil prices fluctuate is to diversify the economy.

Nigeria cannot continue to depend on a product it has no control over how much it is sold.

Right from the time of IBB, its been story upon story. We need to move beyond rhetoric.

modath:


Sorry to burst your bubble but it's not enough.. The nation needs oil price to be at least 70-80$ before a semblance of comfort can be attained.... This price is barely scratching the surface...?

ma I said LESS not END OF excuses

I seriously agree with that person that says that oil is the thing holding us together.
Just imagine that you wake up and discover there is no more oil.
Then nobody will give a fûck about the Niger Delta.

Another excuse by over zombie government

Oil price is fluctuating like the Naira against the dollar.

iceberryose:
No sir
God Is The One Holding This Country Together

Bringing religion to every clear thing that surround you is wrong. Just say the truth... What's so special about this country that God will waste His time to hold?
And if i may also ask, which of the God? The Moslem's God, or the Christian's God??
Or our fore father's God

Please I need an answer

Good news. However, maybe a distraction if we continue putting all in Oil. Diversification is key

jericco1:
I seriously agree with that person that says that oil is the thing holding us together.
Just imagine that you wake up and discover there is no more oil.
Then nobody will give a fûck about the Niger Delta.

One plate of dog pepper soup and a bottle of Origin for you.
Dont worry its on me

modath:


Sorry to burst your bubble but it's not enough.. The nation needs oil price to be at least 70-80$ before a semblance of comfort can be attained.... This price is barely scratching the surface...?

Shut it pls!! 50$ is more than enough for a working government.