Oil rebounded as two tankers were damaged in a suspected attack in the Gulf of Oman, just weeks after a previous incident in the region.
Bloomberg reports that crude in London and New York soared as much as 4.5 per cent following reports of an assault on ships near the Strait of Hormuz, a critical passage for cargoes from the Middle East. The Japanese owner of one vessel told local media it was hit by a “shell.” The second tanker, owned by Norway’s Frontline, suffered three detonations, the Norway Maritime Authority said. Both ships were evacuated.
About a fortnight ago, the fear of analysts at FSDH, was that, if the fight between the U.S and China lingers, it may reduce the demand for crude oil and consequently lead to a decline in the price of crude oil. US and China account for about 34 per cent of the total demand for crude oil.
“A lower crude oil price may reduce the revenue for Nigeria and also have a negative impact on foreign exchange stability and the interest rate”, said FSDH.
