Price of crude oil rose yesterday to above $72 a barrel, recovering from a five-year low it hit earlier as investors looked for a price floor after last week’s Organisation of Petroleum Exporting Countries (OPEC) decision not to cut production.

But oil and gas as well as industrialists said Nigeria shouldn’t jubilate yet as the country’s loss to the slip will take a long time to recoup.

U.S. crude and Brent have fallen for five months in a row, oil’s longest losing streak since the 2008 financial crisis.

Brent hit a low of $67.53 a barrel, the lowest since October 2009, before rising to $72.00 a barrel yesterday.

U.S. crude was up $1.01 at $67.16 a barrel, having slipped to an intraday low of $63.72, the lowest since July 2009.

“The market is still very much in panic mode,” said Energy Aspects’ chief oil analyst Amrita Sen.

“Once we get over the panic, Brent prices will probably stabilise at around $65-80 a barrel in the short term.”

“We can expect such volatility in the near future given the market had overshot to the downside,” Sen said.

Oil lost more than 12 percent after OPEC’s decision last Thursday.

Speaking with one of our correspondents in Lagos yesterday, the Director General of Lagos Chambers of Commerce and Industry (LCCI), Mr Muda Yusuf said it is too early to jubilate over the oil price surge.

Maczeelly:
Does it have any positive effect on the mass...............
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