Nigerian crude oil contracts approaching $90/barrel due to tight supply

Nigerian crude contracts were little changed on Friday but were set to rise for a second week amid signs of improving demand and tight supply, despite an uptick in the dollar’s value.
Nigerian oil contracts, including Brass River, Bonny Light, and Qua Iboe, traded at $87.36 per barrel, while Brent futures for August settlement traded at $85.56 per barrel following an 80-basis point increase in the previous session.
Price action affirms that oil bulls remained unfazed despite the dollar index’s overnight spike of 41 basis points, which erased the greenback’s weekly losses, in the wake of the Swiss National Bank’s second consecutive rate decrease and indications from the Bank of England of a reduction in August.
The US dollar and oil usually have a negative correlation, meaning that rising dollar values are typically accompanied by falling oil prices and vice versa.

source: nairametrics

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