Economy
Crude Oil Gains Despite Demand, Supply Worries
By Adedapo Adesanya
Crude oil prices rose on Tuesday despite double worries from new restrictions resulting from surging coronavirus cases which could threaten a recovery in fuel demand and producers preparing to increase output from August.
Brent crude futures gained 15 cents or 0.35 per cent to $42.87 per barrel, while the US West Texas Intermediate (WTI) crude futures rose 19 cents or 0.47 per cent to $40.29 per barrel.
In the earlier session, the market showed its reaction following the decision by California, the United States’ most populous state, to shut bars and restaurants, movie theatres, zoos and museums as coronavirus cases escalated.
California’s move followed the recent reinstatement of some restrictions in other states such as Florida and Texas. New restrictions were also introduced in Asia and Australia.
This spells worry for the demand side of the market which had been projected to increase by 400,000 barrels per day to 92.1 million barrels per day, according to International Energy Agency (IEA).
On the supply side, markets are keenly awaiting news from Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, on the next level of production cuts.
OPEC’s Joint Technical Committee met on Tuesday and this will be followed by a meeting of the Joint Ministerial Monitoring Committee (JMMC), the major panel, who are due to discuss on Wednesday.
Under the existing supply pact, OPEC+ is set to taper its record production cut of 9.7 million barrels per day to 7.7 million barrels per day from August through December.
OPEC’s monthly report said it expected global oil demand to grow by a record 7 million barrels per day next year, but that demand will still be weaker than it was pre-COVID.
The market received a boost as data showed that the largest crude importer, China’s June crude oil imports hit both daily and monthly highs.
According to data from the General Administration of Customs on Tuesday, China’s crude oil imports jumped by 33 per cent in June 2020, for the second straight monthly record.
The world’s top crude oil importer took in 53.2 million tonnes of oil, equivalent to 12.9 million barrels per day.
This topped the previous record of 11.3 million barrels per day in May and was up 34 per cent from 9.6 million barrels per day in June 2019.
The market will also be watching for consumption data from the American Petroleum Institute (API) industry group and the US Energy Information Administration (EIA)
Analysts have estimated that crude oil inventories fell by 2.3 million barrels last week.
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.
