The Coronavirus pandemic has taken its toll on the international oil benchmark, Brent crude, forcing a price rise to its highest since the outbreak of the virus in March.
The United States’ dwindling crude reserves and weakened dollar have also contributed to the price hike.
As of wednesday, Brent was up 3.4%, a $1.51 increase, taking the price to $45.94 per barrel – a significant increase from its $15.98 per barrel price back in April.
Contributing to the rise are, production quota cuts by Organisation of Petroleum Exporting Countries (OPEC) and the easing of lockdowns by many countries.
The worry among investors is the continued rate of infections and potential new waves of the disease outbreak while a search for the cure continues.
The United States crude reserves, also affected by the international trade limitations and OPEC production cuts, fell significantly to 518.6 million barrels, 7.4 million barrels less in the last quarter of July.
By Daniel Ojukwu