Oil prices rose on Friday as fears of sharp US interest rate increase affect global growth and fuel demand.
Lifestyle Nigeria reports that Brent crude futures saw a 0.28 percent rise to $91.09 a barrel as of 10.21 GMT+1, while US West Texas Intermediate (WTI) crude futures gained 0.08 percent to $85.17 a barrel.
The slight increase in oil prices came as the US Federal Reserve (Fed) is likely to raise its interest rate than previously expected due to growing concerns of a global recession.
An analyst at CMC Markets, Leon Li said: “Today’s morning rebound for oil prices can only be described as a short-term correction, as the Fed will raise interest rates by 75bp or 100bp next week.
“Although the probability of a 100 bp rate hike is relatively small, it would bring uncertainty to market sentiment.”
Li also said that oil prices could still drop lower next week.
In August, Nigeria’s crude oil production saw a drop below the one million mark to 972,394 barrels per day (bpd) — hitting an all-time low.
Nigeria, Africa’s biggest oil producer, now queued behind Angola and Libya, according to the Organisation of Petroleum Exporting Countries (OPEC).
According to The Economist, “price controls remain the biggest reason the boom was ruining the public purse, whereas elsewhere, as the price of crude rises, drivers pay more at the pump, it was not so in Nigeria”.