Oil prices down on Wednesday on Nigerian message

Oil prices retreated on Wednesday in Asian trades, on the back of the Nigerian announcement about the expectations that OPEC producers would refuse to reduce output in September’s meeting.

According to Mubasher Info, Brent crude oil futures were down 0.67 per cent to reach $48.90 per barrel, while US crude oil fell 0.45 per cent to settle at $46.37pb.

“On oil production cuts by OPEC, optimism on my part is quite sparse but I believe engagement with the 70 per cent oil producers might have impact,” Kachikwu was said to have written on his official Twitter account on Monday.

The latest announcements had negative impact on global markets that await the OPEC producing countries’ meeting that will be held in September in Algeria, Mohamed Al Harami, technical analyst, told Mubasher.

He added that U.S. oil was not affected by the fall of the weekly inventories.

Crude oil inventories declined by 1 million barrel to 519.8 million barrel during the week ending on 12 August, despite expectations to rise to 522,000 barrel, according to the American Petroleum Institute.