Brent crude oil price maintained its bullish trend, as it gained ground at London’s trading session on recovering energy demand worldwide, despite a surge in COVID-19 cases in the western world.
Brent crude gained about 1.5%, to trade at $41.67 at 5.23 am Nigerian local time; however, it was heading towards a shortfall for the week.
Quick Fact: Brent crude is the leading global benchmark for Atlantic basin crude oil. The international benchmark is used to set the price of crude oil of about two-thirds of the world’s traded crude oil including Nigeria’s crude.
Crude oil is used mainly in fueling aircraft, vehicles, and trucks that facilitate economic lifestyles and activities in the modern world. Derivatives from refined crude are used in the production of polymers, as well as the production of waxes, tars asphalts, and lubricants.
Overall, commodities markets were taking a positive view on the global recovery on Friday despite worries about coronavirus flare-ups, Michael McCarthy, chief market strategist at CMC Markets told Reuters, “It does appear the market is ignoring supply and demand fundamentals and moving on sentiments.”
In addition, experts said data obtained from satellites showed growing traffic activities in the United States, China, and Europe, buttressing the point that energy demand is picking up.
However, there are fears of the resurgence of the COVID-19 virus in some parts of America, which could stutter the demand recovery for energy.
“The risk of a fresh outbreak could hit the recovery in demand,” ANZ Research said in a note.