Economy
Supply Restrictions from Iraq, Libya Buoys Oil Prices
By Adedapo Adesanya
Oil prices returned to the positive territory on Monday as a result of by supply restrictions reports from Iraq and Libya.
It was reported that Iraq, a top oil giant, was planning to cut production, while reports also emanated from Libya that a pay dispute has caused disruptions in the production of the commodity.
These reports offered more support to the price of crude oil at the global market yesterday as the Brent crude futures rose by 48 cents or 0.87 per cent to trade at $55.87 per barrel, while the West Texas Intermediate (WTI) crude futures improved by 54 cents or 1.01 per cent to sell at $52.80 per barrel.
Iraq, a key laggard under the agreement by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), plans to produce 3.6 million barrels a day of oil in January and February, news reports said, which would fall below the 3.86 million barrels a day allowed.
OPEC+ agreed in April last year to slash output and bolster oil prices, which had been hammered by the spread of the coronavirus. Iraq and other members, including Nigeria, have constantly faced criticism for pumping above their caps and called on them to make compensatory cuts.
With this move, Iraq has shown that it is still committed to the OPEC+ deal, which runs until next year.
Its decision to pump less oil follows a similar action by Saudi Arabia earlier this month. With the virus still raging, the kingdom said it would reduce production in February and March by one million barrels daily, a surprise move that caused oil prices to rise.
The oil market can only benefit from more production curtailments as bearish signals are coming from the demand front, with COVID-19 infections continue to expand globally.
Also providing support on Monday were reports that Libya’s Petroleum Facilities Guard halted all oil exports from the ports of Ras Lanuf, Es Sider and Hariga due to a pay dispute.
Libya had previously seen a recovery in oil output, producing more than 1.2 million barrels a day in December after producing less than 100,000 barrels a day in August, a move that threatened oil prices.
Libya resumed oil exports in September after a blockade of ports and oilfields by Haftar’s forces ended. According to the country’s National Oil Corporation, Libya produces 1.25 million barrels of crude oil per day, this means that the halt would reduce the amount of oil pumped into the market.
Investors also showed confidence as US President Joe Biden continue to push for quick approval of his proposed $1.9 trillion pandemic relief package.
In the latest round of discussion, officials in Mr Biden’s administration on a Sunday call with Republican and Democratic lawmakers tried to head off Republican concerns that his pandemic relief proposal was too expensive.
Meanwhile, the expanding lockdowns in China, the world’s second-largest oil consumer and largest importer continue to worry investors.
The country’s National Health Commission reported 124 new cases of confirmed infections, up from 80 a day earlier with a tally of 15 serious cases reported on Sunday. This increase added to oil demand fears as the country tightened lockdowns and imposed restrictions to battle the spread of the virus.
Meanwhile, some European countries like the UK, France and Spain are also preparing to take additional measures by prolonging and tightening lockdowns to combat the resurgence in cases. Spain reported 42,885 more coronavirus infections, the second-highest daily surge since the pandemic began.
By Adedapo Adesanya
Oil was up by nearly 3 per cent on Tuesday as persistent worries about supply constraints from the closed Strait of Hormuz continued, with Brent futures for June rising by $3.03 or 2.8 per cent to $111.26 a barrel, and the US West Texas Intermediate (WTI) crude futures growing by $3.56 or 3.7 per cent to $99.93 a barrel.
An earlier round of negotiations between the United States and Iran collapsed last week after face-to-face talks failed.
Ship-tracking data showed significant disruptions in the region, with six Iranian oil tankers forced to turn back due to the US blockade, but some traffic is still moving.
Prices trimmed some of the advances after the United Arab Emirates (UAE), the fourth-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), said on Tuesday it would exit the group on this Friday, May 1, 2026.
This dealt a blow to the oil-exporting group and its de facto leader, Saudi Arabia.
The UAE could quickly add between 1 million and 1.5 million barrels per day of output. However, with the Strait of Hormuz effectively closed, analysts said that there’s nowhere for that supply to go.
The UAE joined OPEC in 1967, but tension with Saudi Arabia over production quotas has been building for years.
Under the OPEC+ deal, the country has been held to roughly 3 million barrels per day while sitting on capacity above 4 million. It has been pushing toward 5 million barrels per day by 2027, and that target is hard to achieve with quotas built around someone else’s view of the market.
The war in Yemen broke whatever was left of diplomatic patience.
President Donald Trump said he was unhappy with the latest Iranian proposal to end the war. The proposal would avoid addressing the nuclear programme until hostilities cease and Gulf shipping disputes are resolved.
The Idemitsu Maru, a Panama-flagged tanker carrying 2 million barrels of Saudi oil, and an LNG tanker managed by the Abu Dhabi National Oil Company (ADNOC) crossed the Strait on Tuesday, shipping data showed.
Vortexa data showed that the amount of crude oil held around the world on tankers that have been stationary for at least seven days rose to 153.11 million barrels as of April 24.
The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell by 1.79 million barrels in the week ending April 24. The official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited returned to winning ways on Tuesday after it closed higher by 2.30 per cent amid cautious trading.
Yesterday, investor sentiment at the Nigerian stock market was weak after finishing with 37 price gainers and 40 price losers, indicating a negative market breadth index.
It was observed that the industrial goods sector rose by 4.86 per cent, the energy index appreciated by 4.66 per cent, and the consumer goods segment soared by 2.74 per cent. They offset the 1.38 per cent loss recorded by the banking counter and the 0.20 per cent decline printed by the insurance sector.
At the close of business, the All-Share Index (ASI) was up by 5,137.90 points to 228,740.19 points from 223,602.29 points, and the market capitalisation went up by N3.308 trillion to N147.278 trillion from N143.970 trillion.
The trio of FTN Cocoa, Industrial and Medical Gases, and Lafarge Africa gained 10.00 per cent each to sell for N5.50, N39.60, and N324.50, respectively, while Austin Laz grew by 9.71 per cent to N3.73, and Aradel Holdings jumped 9.52 per cent to N1,840.00.
On the flip side, UBA lost 10.00 per cent trade at N44.55, Trans-Nationwide Express slipped by 9.99 per cent to N6.40, NASCON crashed by 9.18 per cent to N187.90, Jaiz Bank depreciated by 8.93 per cent to N8.01, and Berger Paints crumbled by 8.66 per cent to N68.00.
Yesterday, market participants traded 908.0 million equities valued at N68.2 billion in 72,886 deals compared with the 678.2 million equities worth N44.1 billion transacted in 82,838 deals on Monday, showing a drop in the number of deals by 12.01 per cent, and a spike in the trading volume and value by 33.88 per cent and 54.65 per cent, respectively.
By Adedapo Adesanya
Nigeria’s oil production recorded a five-year high of 1.71 million barrels per day, marking a significant rebound for the country’s upstream sector amid renewed efforts to restore output and improve operational stability.
The latest figure, released by Nigerian National Petroleum Company (NNPC) Limited, covers the period from April 2025 to April 2026 and underscores a steady recovery in crude production after years of disruptions caused by theft, pipeline vandalism and underinvestment.
According to the chief executive of the national oil company, Mr Bayo Ojulari, the performance reflects measurable progress across the company’s upstream, gas and downstream operations, with production gains supported by improved asset management and stronger field performance.
Within its exploration and production business, NNPC recorded a peak daily output of 365,000 barrels in December 2025, the highest level ever achieved by its upstream subsidiary. The company also advanced key contractual reforms, including revised production-sharing terms for deepwater assets aimed at unlocking additional gas reserves.
Nigeria’s gas ambitions are also gaining traction. Gas supply rose to 7.5 billion standard cubic feet per day in 2025, driven by major infrastructure milestones such as the River Niger crossing on the Ajaokuta-Kaduna-Kano pipeline and the commissioning of the Assa North-Ohaji South gas processing plant.
These investments are beginning to strengthen domestic gas utilisation. New supply agreements with major industrial consumers, including Dangote Refinery, Dangote Fertiliser and Dangote Cement, are expected to deepen gas penetration across manufacturing and power generation.
On the downstream front, NNPC has continued crude supply to Dangote Refinery under the crude-for-naira arrangement, a policy designed to reduce foreign exchange demand, support local refining and improve fuel market stability. The company also reaffirmed its 7.25 per cent equity stake in the refinery as part of its long-term energy security strategy.
Financially, the national oil company said it has resumed full monthly remittances to the Federation Account since July 2025. It has also reinstated regular performance reporting and held its first earnings call, moves widely seen as part of a broader push towards greater transparency and corporate accountability.
Despite the progress, challenges remain. Crude theft, pipeline outages and infrastructure bottlenecks continue to threaten production stability. Sustaining this recovery will depend on stronger security, reliable infrastructure and policy consistency as Nigeria seeks to maximise the benefits of rising domestic refining capacity.
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