Oando to Quit NGX After Purchase of 42.63%…

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Oando to Quit NGX After Purchase of 42.63%…

Oando to Quit NGX After Purchase of 42.63%…

By Adedapo

Brent crude dipped by 5.7 per cent or $4.56 to $108.18 per barrel on as the market fears a looming recession would drive down global demand.

Also, the price of the US West Texas Intermediate (WTI) crude was down by 6.24 per cent or $5.26 during the to settle at $102.77 per barrel as analysts project that the action taken by the US Federal Reserve to rein in with aggressive interest rate hikes may not produce the desired effect and will actually lead to a recession within a year or a year and a half.

Investors are to assess how worried they need to be about central banks potentially pushing the world economy into recession as they attempt to curb inflation with interest rate .

As this happened, remain concerned that rate hikes in the US and other would stall an economic recovery and dampen fuel demand.

According to the US central bank chief, Mr Jerome Powell, on Wednesday, the Federal Reserve is not trying to engineer a recession to stop inflation but is fully to prices under even if doing so risks an economic downturn.

Moreover, the strong US Dollar is also weighing on prices, as a strong greenback makes purchases more expensive for of other currencies.

A rising US Dollar could the level of imports in -importing countries.

Prices were also dampened as the of Mr Joe Biden of the US remains locked in a dispute with the US industry over what led to a $5 a gallon fuel price in America, the world’s consumer.

This is as the American president is pushing for a temporary federal gas tax holiday.

Mr Biden called on US Congress to pass a three-month of the federal gasoline tax to help record pump prices and provide temporary relief for American families this summer.

The market looked at it that even if the gasoline tax was suspended, retail prices would remain high, making it difficult to stimulate demand.

The American Petroleum Institute (API) reported a build this week for crude of 5.607 million barrels, while analysts predicted a draw of 1.433 million barrels.

It is the first build of over 5 million barrels since mid-February, according to API data.

The build comes as the US Department of Energy released 6.8 million barrels from the Strategic Petroleum in Week Ending June 17.

US crude inventories have shed some 68 million barrels since the of 2021 and about 11 million barrels since the start of 2020, according to API data.

The market will be waiting for the official data from the Energy Administration (EIA) due to be released later on Thursday.

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