Story from Abah ADAH, Abuja
The crude oil companies have recovered all that it lost during the Covid-19 pandemic of 2020 as demand for petroleum products has returned.
Oil on the New York Mercantile Exchange (NYMEX) closed at $68 per barrel on June 2, 2021, for 30-day delivery, and $71 on the international exchange for Brent, according to an OPEC website.
In January 2020, crude oil traded in the $60 range for West Texas Intermediate (WTI) but began to slide as the global economy went into a tailspin because of governments’ worldwide ordered lockdowns.
By the beginning of the second quarter, the WTI price had fallen to less than $20.
Soft prices resulted in production declines in the U.S. and around the world. U.S. production dropped from 13 million barrels per day (b/d) to 11 million b/d.
The Organization of Petroleum Exporting Countries and a group of non-member producing countries, which includes Russia, decided to cut production by 9.7 million b/d.
As supply decreased and demand increased, the oversupply eventually eased. Crude oil inventories in the U.S. reached a record high of 540 million barrels in June 2020, but they have declined to 484 million barrels, according to the Energy Information Administration.
Crude oil prices have increased. Oil on the NYMEX closed at $68 per barrel on June 2 for 30-day delivery, and $71 on the international exchange for Brent.
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