Oil price jumps above $41 as storm hits United States output, inventories drop

Oil-price

Oil price rose for a second day on Wednesday, gaining more than two per cent, as a hurricane closed U.S. offshore production and an industry report showed American crude inventories unexpectedly decreased.

More than a quarter of U.S. offshore output was shut on Tuesday due to Hurricane Sally.

The American Petroleum Institute on Tuesday said crude inventories fell 9.5 million barrels, rather than increased as analysts expected.

Brent crude rose 86 cents or 2.1 per cent to $41.39 a barrel by 1012 GMT, while U.S. crude added 85 cents or 2.2 per cent to $39.13.

Both contracts rose by more than two per cent on Tuesday.

“Overnight, the APE Industrial court orders resident doctors to resume work immediately Buhari unveils 60th anniversary logo, presides over 15th virtual FEC meeting National Industrial Court, Abuja on Wednesday ordered the National Association of Resident Doctors (NARD), to cease its industrial action immediately.

Delivering a ruling in an order of interim injunction, the vacation judge, Justice Ibrahim Galadima, also ordered that NARD to resume duties forthwith pending determination of the pending Motion on Notice.

Galadima made the order sequel to an ex parte application filed by Frank Tietie, counsel to the applicant, Citizens Advocacy for Social and Economic Rights and Association of Women in Trade and Agriculture.

In the application, the applicant had prayed for an interim order of the court directing the NARD, being a provider of the essential services of health necessary to the fundamental right to life, to immediately cease its strike action and resume duties forthwith pending the hearing and determination of the Motion on Notice.

The court after granting the prayer also fixed Oct. 8, for the hearing of the substantive suit. President Muhammadu Buhari has unveiled the nation’s 60th Anniversary Logo with a pledge that his administration will continue to work towards greater inclusiveness.

Buhari also called for the participation of all Nigerians. The unveiling of the logo by the president was held shortly before the commencement of the 15th virtual meeting of the Federal Executive Council (FEC) at the State House, Abuja on Wednesday.

The president described the logo as a product of choice from Nigerians who participated in the selection process.

He said that the Diamond Anniversary would be low key in view of the prevailing COVID-19 pandemic.

“Celebrating 60 years of independence really calls for pomp and pageantry, but the global COVID-19 pandemic, which has forced all nations to think and act differently, has also forced on us the imperative of a low-keyed celebration.

“Operating within the limitations placed by the COVID-19 pandemic, we created an internet challenge for Nigerians to make a choice from a set of four pre-selected logos that will appropriately define the theme.

“Of these four options, Nigerians from all walks of life participated in making a choice and I’m happy to let you know that the logo I will be unveiling is a product of choice from the Nigerian people.

“I’m informed that the selected option depicts our togetherness; a country of over 200 million people, whose natural talents, grits and passion glitter like the precious diamond we are.

“As we celebrate this anniversary, this government will work towards greater inclusiveness and look forward to the participation of all Nigerians,’’ he said.

In his remarks, the Secretary to the Government of the Federation, Mr Boss Mustapha, who is also the Chairman of the InterMinisterial Committee on Nigeria’s 60th Anniversary Celebration, said the unveiling of the logo marks the official take-off of Nigeria’s 60th anniversary.

Mustapha narrated how the committee arrived at the selection of the ‘Diamond Logo’ from 15 different possibilities designed by patriotic Nigerian firms.

He thanked the president for engaging members of the committee in the national assignment. Vice-President Yemi Osinbajo, some cabinet members and presidential aides witnessed the unveiling of the logo.

Ministers of Aviation, Sen. Hadi Sirika; Interior, Ra’uf Aregheshola; Finance, Zainab Ahmed and Justice, Abubakar Malami are expected to make presentations at the 15th virtual council meeting.

Other ministers are participating in the meeting from their respective offices in Abuja online. provided a further injection of bullish impetus,’’ said Stephen Greenock of oil broker P.M.

“As much as a feel-good factor appears to have returned to the oil market, underlying fundamentals remain far from supportive.’’

The storm-related shutdowns may help reduce the stockpile, although refineries were also closed, cutting demand.

Official Energy Information Administration stocks data, which does not always confirm the APE figures, is due at 1430 GMT.

“Oil prices were lent further support by the APE and the weather,’’ said Commerzbank analyst, Eugene Weinberg.

“Despite an unfavourable fundamental and technical backdrop.’’ Oil prices collapsed to historic lows as the coronavirus crisis hit demand.

READ ALSO: Oil prices rise on falling U.S. dollar

A record supply cut by OPEC and its allies, known as OPEC+, and an easing of lockdowns have helped Brent recover from a 21-year low below $16 in April.

Prices have dropped in September, pressured by rising virus cases and concerns about demand.

The Organisation of the Petroleum Exporting Countries and International Energy Agency have both cut their demand outlooks this week.

A panel of OPEC+ oil ministers meets to review the supply pact on Thursday and is unlikely to recommend further output curbs despite the price drop, sources told Reuters.

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