Brent crude, which serves as the price peg for Nigeria’s petroleum exports, closed at $78.63 on Thursday, $1.37 less than the $80 three-year high it attained on May 17.
Analysts say the downward drift of oil prices in recent days could be down to plans by Russia to ease production restrictions ahead of OPEC/non-OPEC Joint Ministerial Monitoring Committee (JMMC) meeting scheduled for June 22.
Russia’s energy minister, Alexander Novak, hinted at such a plan on Thursday.
Greg McKenna of brokerage firm Axitrader told Reuters that Russia is like a tourist waiting to get off the production cut boat.
“The Russians have always struck me as production cut tourists keen to get off the boat and crank up production as soon as inventories were stabilised and prices once again elevated … That possibility is top of the mind for traders and as a result oil prices are slipping.,” he…
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