TheCable

Oil prices rose on Friday amid fears of sharp US interest rate hikes affecting global growth and fuel demand.

Brent crude futures went up 0.28 percent 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 and amid growing concerns of a global recession. 

Leon Li, analyst at CMC Markets, 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 added that there is still a risk that oil prices could drop lower next week.

In August, Nigeria’s crude oil production dropped 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). 

The Economist, in a report over the weekend, had said price controls and low production are the major reasons stopping Nigeria from profiting from the global oil boom.

According to the report, “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”.