Oil prices rebounded in Asia Wednesday after crude fell $30 a barrel on Tuesday for the first time in more than 12 years.
However, experts have warned that prices will remain fragile.
“The supply and demand landscape for oil continues being bearish as prices continue to take discounts,” Daniel Ang, an analyst with Phillip Futures in Singapore said in a market commentary.
“US oil supply continues to remain strong.”
Nigeria on Tuesday called for an emergency meeting of the grouping to address collapsing prices, which have now rattled world stock markets and hammered energy firms.
Minister of State for Petroleum, Emmanuel Ibe Kachikwu, said he expects an extra-ordinary meeting of the group in “early March” to discuss the crisis.
“We did say that if it hits the $35 (per barrel level), we will begin to look at an extraordinary meeting,” Kachikwu said at the Gulf Intelligence UAE Energy Forum.
Some members of the Organization of Petroleum Exporting Countries have been clamouring for a cut in the high production levels in a bid to drive prices higher.
But influential OPEC members led by Saudi Arabia have rejected any such move, preferring to fight for market share against rival producers, particularly the United States.
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