Economy
Oil Bullish as US Fuel Demand Improves Amid Tight Supply
By Adedapo Adesanya
Oil prices continued the bullish run on Wednesday as they advanced further from improved fuel demand in the United States, backing expected demand growth and tighter supply.
Brent crude gained 31 cents or 0.25 per cent to trade at $123.90 per barrel while the US West Texas Intermediate (WTI) crude appreciated by 20 cents or 0.16 per cent to $122.30 per barrel.
Even though the US Energy Information Administration (EIA) reported a crude oil inventory build of 2 million barrels for the week to June 3, crude in the Strategic Petroleum Reserve fell by a record amount as refiners’ inputs rose to their highest since January 2020 compared with the 1.5 million barrels of the previous week, leaving inventories at 416.8 million barrels, which was some 15 per cent below the five-year average for this time of the year.
As a growing number of analysts revise their oil price forecasts upwards, the EIA also reported mixed inventory data for fuels.
In gasoline (petrol), the EIA estimated an inventory decline of 800,000 million barrels for the week to June 3, which compared with a draw of 700,000 barrels for the previous week.
Production averaged 10 million barrels per day last week, which was slightly higher than the average for the previous week.
Higher prices were also supported by the expectation of China easing the COVID restrictions, translating into higher demand and imports this summer.
Good news came as the world’s largest oil importer as its stocks traded at a two-month closing high, further signifying anticipation of better days following months of lockdown over COVID-19.
On the supply side, traders noted several countries could face problems boosting output.
The energy minister of the United Arab Emirates (UAE), Mr Suhail al-Mazrouei said efforts by the producer alliance group known as OPEC+ have not been encouraging.
“According to last month’s report, we have seen the conformity (to output cuts) of the OPEC+ group and the conformity was more than 200 per cent,” he said, noting the group was currently 2.6 million barrels per day short of its target.
Since OPEC+ started reversing last year the record cuts in April 2020, the group has been consistently struggling to meet its production quota as many members lack spare capacity or investment to increase production.
OPEC’s African members, Nigeria and Angola, are struggling with their targets, while the leader of the non-OPEC producers in the pact, Russia, is trying to stop a production decline as its oil is now under sanctions, bans, and embargoes in the West.
The alliance decided last week to accelerate its monthly oil production increase to 648,000 barrels per day for July and August as the group looks to compensate for falling production in Russia amid expectations of strong fuel demand this summer.
The International Energy Agency (EIA), meanwhile, warned that Europe, which has sanctioned Russia following its invasion of Ukraine, could face energy shortages.
By Aduragbemi Omiyale
Nigeria slightly surpassed its quota set by the Organisation of the Petroleum Exporting Countries (OPEC) in July 2026.
In the month under review, the country produced about 1.57 million barrels of crude oil per day.
It was the third consecutive month Africa’s largest oil-producing nation was meeting its monthly quota, set to stabilise the price of the commodity on the global market by the oil cartel.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday showed that the 1.5 million barrels per day ceiling for Nigeria was surpassed last month.
The agency disclosed in a statement today that the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate, bringing the combined daily production to 1.67mbpd.
In the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.
Although Nigeria met its OPEC quota in the month of July, the statistics show that on a month-on-month basis, production fell by 4 per cent.
This was attributed to the decline in production due to operational challenges experienced at the Erha and Akpo fields, which impacted crude oil output during the period under review.
These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures aimed at maintaining production efficiency and minimising the impact of operational constraints, NUPRC stated.
By Aduragbemi Omiyale
The over 9 billion shares of Lasaco Assurance Plc issued to shareholders of the company via a rights issue have been listed on the Nigerian Exchange (NGX) Limited.
The equities were brought to Customs Street on Wednesday by the organisation, increasing its total issued and fully paid-up share capital.
Lasaco Assurance, which scaled the recapitalisation hurdle of the National Insurance Commission (NAICOM) in July 2026, raised fresh capital from the capital market to shore up its capital base.
The underwriting firm got about N18.5 billion from the rights issue, which involved the issuance of 9,236,321,546 ordinary shares at a unit price of N2.00.
The exercise was on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
Confirming the listing of the additional stocks of Lasaco Assurance today, the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, announced in a circular that, “Trading licence holders are hereby notified that an additional 9,236,321,546 ordinary shares of 50 Kobo each of Lasaco Assurance Plc were today, Wednesday, August 12, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 9,236,321,546 ordinary shares of 50 Kobo each at N2.00 per share on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
“With the listing of the additional 9,236,321,546 ordinary shares, the total issued and fully paid-up share capital of Lasaco Assurance Plc has now increased from 11,083,585,855 to 20,319,907,401 ordinary shares of 50 Kobo each.”
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has said the successful recapitalisation of the insurance industry will strengthen the sector’s ability to support financial stability and economic growth.
NIA Chairman, Mrs Ebelechukwu Nwachukwu, said a well-capitalised insurance industry would be better positioned to meet its obligations promptly, underwrite complex and large-scale risks and serve as a dependable pillar of the Nigerian economy.
She made the remarks while commending the National Insurance Commission (NAICOM) for its structured implementation of the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mrs Nwachukwu said NAICOM’s clear guidelines, systematic verification process, defined timelines and rigorous supervision had provided operators with a credible framework for navigating the recapitalisation exercise.
She described the outcome as a major milestone for the industry and congratulated the 43 insurance and reinsurance companies that have successfully met the prescribed minimum capital requirements.
According to her, the exercise represents “a major win not just for regulators and operators, but for policyholders, investors and the wider Nigerian economy.”
Mrs Nwachukwu said the association would continue to work with NAICOM and other stakeholders to consolidate the gains of the exercise, with emphasis on sustainable industry growth, stronger market conduct and improved consumer confidence.
The official also expressed solidarity with the eight companies still undergoing final verification and regulatory review, urging them to remain confident as NAICOM completes the process within the 14-day review period.
The NIA chairman assured policyholders and the wider business community that the insurance industry would emerge from the recapitalisation exercise stronger, more resilient and better positioned to contribute to Nigeria’s economic development.
