It is illegal to withdraw naira to buy dollars — Emefiele

By Adedapo Adesanya

Oil prices rose around 1% on Tuesday as traders worried about tight supplies and a weaker U.S. dollar, pushing the price of Brent crude up $1.08 or 1.0% to $107.35 per barrel and US West Texas Intermediate (WTI). Crude rose $1.62 or 1.6% to $104.22.

Prices were supported by supply fears due to Western sanctions on Russia, which could see more than three million barrels a day wiped out of the supply market as producers continue to underperform.

The US dollar fell to a two-week low against a basket of other currencies, bolstering demand for oil by making it cheaper for buyers using other currencies.

In a decision that could pose a supply problem, the new head of Libya’s National Oil Corp (NOC), Farhat Bengdara, rejected challenges to his appointment and the resumption of work in some closed fields and ports.

The North African producer will begin loading oil for export on Wednesday after force majeure was declared lifted following an intense battle for control of the National Oil Company (NOC) last week.

Libya’s Government of National Unity (GNU), led by interim Prime Minister Mr. Abdul Hamid Dbeibah, last week appointed the new president to replace longtime President Mr. Mustafa Sanalla, who has refused to resign when armed militias stormed the NOC headquarters.

A statement released said that two tankers will arrive at the ports of Zueitina and Sidra to load more than one million barrels of oil. The statement also indicates that two additional tankers will arrive at the port of Ras Lanuf.

The American Petroleum Institute (API) this week reported an increase in crude oil of 1.860 million barrels, while analysts expected an increase of 333,000 barrels.

The construction comes as the Department of Energy released 5 million barrels of strategic oil reserves in the week ending July 15, at 480.1 million barrels.

U.S. crude inventories have lost some 61 million barrels since the start of 2021, with a gain of 1.83 million barrels since the start of 2020, according to API data.

The previous week, the API reported a rise in crude oil inventories of 4.762 million barrels after analysts predicted a drawdown of 1.933 million barrels.

On Wednesday, the US Energy Information Administration (EIA) will release official government data to confirm whether there has been a build-up or a drawdown.

Last week, US President Joe Biden visited Saudi Arabia, the world’s largest oil exporter, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), whose crude exports in May fell to a four-month low at 7.050 million barrels per day.

Among these, pressures remain that global central banks, in their efforts to rein in inflation, have fueled fears that a potential recession could reduce demand for energy.

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