Economy
Oil Jumps as US Records Large Crude Stockpiles Draw
By Adedapo Adesanya
Oil gained on Wednesday after data showed a much larger than expected draw in crude inventories in the United States, thanks to strong export demand.
Brent crude rose by $1.73 or 1.8 per cent to $94.07 per barrel while the US West Texas Intermediate (WTI) crude rose by $2.03 cents or 2.3 per cent to $88.46 per barrel.
US crude stocks fell by 7.1 million barrels in the week to August 12 to 425 million barrels, according to data from the Energy Information Administration (EIA), beating analysts’ expectations.
Crude exports hit 5 million barrels per day in the world’s largest producer, according to EIA data, the highest on record, as it became more attractive to foreign buyers. In a sign of strong demand, fuel stocks also drew 4.6 million barrels, much higher than the expected 1.1 million barrel draw.
The American Petroleum Institute (API) on Tuesday had flagged a 448,000 barrel draw in crude stocks and 4.5 million barrels in fuel inventories.
The market was pressured by British consumer price inflation which jumped to 10.1 per cent in July, its highest since February 1982, intensifying a squeeze on households.
Still, analysts point out that the oil market is expected to stay under pressure, with fairly high volatility, due to worries over a potential global recession.
The volatility is being fed also by continued uncertainty about the Iran nuclear deal after the Middle East producer sent a written response to the EU’s latest proposal with Iranian media suggesting it won’t accept it as is.
If there is a compromise is reached, it could eventually lead to a boost in Iranian oil exports and could add one million barrels to the market.
The European Union (EU) and the US said on Tuesday they were studying Iran’s response to what the EU has called its “final” proposal to save the deal.
Another factor fuelling price volatility is the latest oil demand figures from China, which were weaker than many expected.
The new Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC), Mr Haitham Al Ghais said the rising price of crude oil is due to underinvestment in critical oil infrastructure and not a result of the group’s refusal to increase production.
OPEC had warned that there was severely limited availability of excess capacity and cautioned countries that could to use what spare capacity they had with great caution.
The cartel and its allies, OPEC+ raised its production target for September by just 100,000 barrels per day, although it is still undershooting its production quotas by millions of barrels per day.
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.
