Brent Crude Falls on Demand Concerns, Possible Iran Deal

Image

By Adedapo Adesanya

The Brent crude lost $2.76 or 2.9 per cent to settle at $92.34 per barrel on Tuesday as economic data spurred concerns about a potential global recession, while the market awaited clarity on talks to revive a deal that could allow more Iranian oil exports.

Also, these concerns depleted the price of the United States West Texas Intermediate crude (WTI) by $2.88 or 3.2 per cent to $86.53 a barrel.

The slide in prices indicated the lowest for oil before Russia’s invasion of Ukraine almost six five months ago.

Weak economic indicators from the world’s top economies continue to weigh on prices.

In the US, homebuilding fell to the lowest level in nearly 1-1/2 years in July, weighed down by higher mortgage rates and prices for construction materials, suggesting the housing market could contract further in the third quarter.

The housing market’s declining fortunes bring fears of a broader economic recession back into focus, which could impact oil demand.

Analysts also noted that oil traders reacted because of concerns about an economic slowdown and housing uses energy.

The US Federal Reserve is expected to stay on its aggressive monetary policy tightening path.

China’s central bank cut lending rates to try to revive demand as the nation’s economy slowed unexpectedly in July after the country’s zero-COVID policy and a property crisis slowed factory and retail activity.

Also weighing on prices, the European Union is assessing Iran’s response to what the bloc has called its “final” proposal to save a 2015 nuclear deal, and consulting with the US.

Iran had responded to the proposal late on Monday but none of the parties provided any details.

The American Petroleum Institute (API) reported a draw this week for crude oil of 448,000 barrels, while analysts predicted a smaller draw of 117,000 barrels.

The draw comes as the Department of Energy released 3.4 million barrels from the Strategic Petroleum Reserves in the week ending August 12, to 461.2 million barrels.

US crude inventories have shed some 61 million barrels since the start of 2021, with a 1.7 million barrel gain since the start of 2020, according to API data.

Market participants will await the official industry data on US oil inventories expected later on Wednesday.

Share
Related Stories
Image
29-February-2024

Navigating the Complex World of Investing: What Novices Need to Know

Have you finally decided to take the leap into the exciting arena of investing? Not only is this an excellent way to secure a lucrative nest egg for the future, but many have begun to use these opportunities as a springboard for their businesses. However, appreciating the intricacies of online trading is no easy task. A great deal of preparation will be required and mistakes can occur on occasion. This is why knowing where to begin is one of the best ways to establish strong foundations. Let us therefore cut through a fair amount of “fluff” and examine a handful

Image
28-February-2024

Crude Oil Soars as OPEC+ Hopes to Extend Voluntary Output Cuts

By Adedapo Adesanya  Crude oil grew on Tuesday as the Organisation of the Petroleum Exporting Countries, and its allies (OPEC+) are considering extending voluntary output cuts into the second quarter to provide additional support. This information caused the price of Brent crude to gain 99 cents or 1.2 per cent to sell at $83.52 a barrel, as the price of the US West Texas Intermediate (WTI) crude went up by $1.24 or 1.6 per cent to $78.82 per barrel. Reuters reported that OPEC+ could also keep the additional cuts in place until the end of the year to provide support for

More Stories
Image
14-July-2017

SEC Investigates Oando Nigeria over Alleged Malpractices

By Modupe Gbadeyanka Capital market regulator in Nigeria, Securities and Exchange Commission (SEC), has launched a full investigation into financial statements of Oando Nigeria. It was gathered that SEC has observed alleged malpractices in the company’s financial statements and it has formally written to the oil firm to provide sufficient explanations on the mater. According to Channels TV, competent sources divulged to it that SEC commenced the investigations following petitions filed by some foreign investors in Oando Nigeria Plc in relation shareholding structure following the $1.65 billion cash the firm paid in June 2014 to acquire the oil production assets

Image
03-February-2022

Wigwe Seeks Collective Responsibility to End HIV Transmission

By Modupe Gbadeyanka The Group Managing Director of Access Bank Plc, Herbert Wigwe, has called for collective responsibility to put an end to HIV transmission in Nigeria. The banker made this known at the launch of the $100 million HIV Trust Fund in Abuja this week, urging the private sector to rise up to the occasion by working in collaboration with the government in the area of ownership in sustaining the HIV response. “However, the original emergency Plan to fight AIDS must transform into a Sustained Response that prevents new infections and ensures those on treatment stay on treatment. “The

Image
22-July-2019

N4.6bn Debt: Ecobank Takes Over Power Firm

By Modupe Gbadeyanka A receiver-manager appointed by Ecobank Nigeria Limited, Taiwo Ogbara, has been empowered by a Federal High Court sitting in Lagos to have unrestricted access to one of the debtors of the financial institution, Shoreline Power Company Limited, into its premises. The power firm was said to owe the lender about N4.6 billion and that when the bank appointed a receiver to take over the company, it resisted, which prompted a court action and Justice Chuka Obiozor restrained the firm’s management, including Orikolade Karim, Tunde Karim, Yinka Karim, Marc Hasenclever and Graeme Stout, from interfering with or obstructing

Image
24-November-2016

Naira Settled Currency Futures Open Interest Report @ November 23, 2016

By Quantitative Financial Analytics  NIFEX Spot The FMDQ NIFEX Spot remained unchanged at N315.125 for the third day in a row at the end of business on November 23, 2016. Open Interest and Volume Analysis Open interest in currency futures decreased by 331.33 from 3,937.33 to 3,606 due largely to the NGUS NOV 23 2016 which matured today. As expected, the CBN reset the prices of futures upward. Mark to Market Analysis and Attribution The estimated Mark to Market (MTM) of open interest now stands at N207.54 billion, against previous day’s Mark to Market value of N214.57 billion. Change in

Image
19-August-2016

Ecobank Wins Big At Asian Banker’s Awards

Nigeria’s Ecobank has been named as winner of the Customer Relationship Management of the Year, Retail Risk Management Initiative of the Year and Best Business Model Execution in West Africa for 2016 at The Asian Banker’s 1st Annual West Africa Awards Ceremony held in Lagos recently. The Best Retail Banker in Africa award went to Group Executive, Consumer Bank Ecobank Group, Patrick Akinwuntan. The maiden Asian Banker’s West Africa Awards are acknowledged in the financial sector as a strong indicator of excellence among the financial services industry. According to the organisers of the Awards, Ecobank was awarded for its customer

Image
17-October-2017

It’s Unfair for Governors to Owe Worker’s Salaries—Buhari

By Dipo Olowookere President Muhammadu Buhari has expressed concern on the growing complaints and agitations by workers in states over unpaid salaries and allowances despite interventions by the Federal Government. Mr Buhari, while receiving a group of Governors led by the Chairman of the Nigerian Governors’ Forum, Abdul’Aziz Abubakar Yari, on Tuesday at the State House in Abuja, lamented that the plight of workers in the states need urgent attention as many could barely survive. He asked, “How can anyone go to bed and sleep soundly when workers have not been paid their salaries for months?” “I actually wonder how

Image
14-December-2017

Domestic IPO by African Issuers Rises 19.5% to $1.4b in 2017—Report

By Dipo Olowookere For the second year in a row, the capital raised in domestic listings by African issuers increased by 19.5 percent year-on-year to $1.4 billion in 2017, research in the latest Global Cross-Border Index from Baker McKenzie has revealed. The report, which was made available to Business Post on Thursday, disclosed that there were fewer domestic listings in Africa in 2017, with only seven domestic IPOs were recorded in Africa in the period under review. However, the value of domestic IPOs was higher in 2017, $1,379 million, compared to $1,154 million in 2016. The report showed that there

Image
23-December-2016

Nollywood to Get N100b from DSO

By Dipo Olowookere The Digital Switch Over (DSO) in Broadcasting is set to create a N100 billion Naira per annum FreeTV distribution network for Nollywood, among a number of positive spin-offs, the Minister of Information and Culture, Mr Lai Mohammed, disclosed on Thursday. Speaking at the launch of the DSO in Abuja, the Minister also listed job creation, 30 free digital channels, free and easy access to Government and Public information through a touch of the remote control, current affairs and news available through the middleware on the boxes and a world class Electronic Programme Guide that will make television

Ad
Ad
Recent Stories
Image
29-February-2024

Navigating the Complex World of Investing: What Novices Need to Know

Have you finally decided to take the leap into the exciting arena of investing? Not only is this an excellent way to secure a lucrative nest egg for the future, but many have begun to use these opportunities as a springboard for their businesses. However, appreciating the intricacies of online trading is no easy task. A great deal of preparation will be required and mistakes can occur on occasion. This is why knowing where to begin is one of the best ways to establish strong foundations. Let us therefore cut through a fair amount of “fluff” and examine a handful

Image
29-February-2024

No Going Back on Reforms—Tinubu

By Adedapo Adesanya President Bola Tinubu has said there is no going back on the reforms embarked upon by his government that have led to the hike of essential goods and services in the country. He made this known as he inaugurated the Red Line Rail Project in Lagos on Thursday. The project, an intra-state rail service, is aimed at improving transportation within the city and spans 37 kilometres. Speaking while inaugurating the project, the President reiterated his administration’s commitment to improving the nation’s infrastructural development. He said, “But this revolution that has started, this reform that is ongoing, we

Image
29-February-2024

Senate Confirms Appointment of Four Nominees to CBN Board

By Aduragbemi Omiyale The appointment of four nominees to the board of the Central Bank of Nigeria (CBN) has been confirmed by the Senate. The nominees were confirmed for the position at the plenary on Thursday after the presentation of the report of the Senate Committee on Banking, Insurance and Other Financial Institutions. Chairman of the committee, Mr Tokunbo Abiru, informed his colleagues that only four of the five persons nominated by President Bola Tinubu appeared for screening. The nominees screened and confirmed to join the board of directors of the central bank are Robert Agbede, Ado Yakubu Wanga, Murtala

Image
29-February-2024

Africa Beyond Russia’s Grains Partnerships

By Kestér Kenn Klomegâh Until sustainable food security is established through modernizing agriculture and ensuring adequate support for local farmers, Russia’s grain supply would be a soft geostrategic bait (i) to reinforce the existing time-tested relationships with Africa and (ii) to solicit an endorsement for the unprovoked war in Ukraine. In a speech delivered on March 20, 2023, during the interparliamentary conference ‘Russia-Africa’ held in Moscow, President Vladimir Putin described six African countries as the least developed and poorest in the world that are urgently in need grains, alternatively referred to as humanitarian aid, to feed its population. The beneficiary

Image
29-February-2024

MasterCard, MTN Partner to Boost Digital Commerce, Payments

By Aduragbemi Omiyale A partnership aimed at driving acceleration of the mobile money ecosystem in Africa across 13 markets has been entered into between Mastercard and MTN Group Fintech. This is coming shortly after the payments giant completed the purchase of a minority stake in the telecommunications company. The deal will see Mastercard giving a prepaid virtual card tailored for MTN’s MoMo customers, granting them access to over 100 million acceptance points worldwide. Additionally, it will empower MoMo merchants to seamlessly accept card payments, enhancing the platform’s instant cross-border money remittance services and capabilities. Further, Mastercard will use its cutting-edge

Image
29-February-2024

Adesina to Receive Prestigious Obafemi Awolowo Prize for Leadership

By Ichie Enyi Ejike Umunnabuike Jr Come March 6, 2024, the Lagos Continental Hotel will host an unforgettable occasion when the President of the African Development Bank (AfDB), Mr Akinwumi Ayodeji Adesina, will be formally honoured and presented with the distinguished Obafemi Awolowo Prize for Leadership 2023. The Obafemi Awolowo Prize for Leadership was first announced in December 2012, with the official award ceremony held on March 6, 2013. Before Mr Adesina was announced as its fourth recipient, three other distinguished personalities had been conferred with the prestigious award – Noble Laureate, Prof. Wole Soyinka; former South African President, Thabo

Image
29-February-2024

Exploring Diverse and Evolving Sounds of Africa

Africa’s music scene is a sonic melting pot, where rhythms collide and cultures connect. It’s a universal language, a force that breaks boundaries and fuels the soul. This sonic tapestry isn’t just diverse – it’s explosive. Afrobeats and Amapiano own the spotlight right now. Those irresistible Afrobeats hooks? They’ve got the whole world dancing. And Amapiano’s hypnotic blend of South African house and street sounds? It’s straight-up addictive. Mainstream African artists are pushing the boundaries like no one else, taking Amapiano and running with it. They’re injecting their fire, creating a whole new flavour. This is proof that African music

Image
29-February-2024

Nigeria Needs Policies that Prioritize Economic Recovery—Peter Obi

By Adedapo Adesanya The presidential candidate of the Labour Party in the 2023 general elections, Mr Peter Obi, has raised concerns over the recent decision of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to increase the Monetary Policy Rate (MPR) to 22.5 per cent and the Cash Reserve Ratio (CRR) to 45 per cent. Mr Obi warned that this move is likely to worsen the ongoing economic challenges faced by many Nigerian households, and emphasized the need for policies that prioritize economic recovery. In a statement issued via X (formerly Twitter), the businessman and former

Image
29-February-2024

Silence Laboratories Raises $4.1m for Privacy-Preserving Computing

By Adedapo Adesanya Silence Laboratories has announced securing $4.1 million in funding to enable privacy-preserving collaborative computing led by Pi Ventures and Anurag Arjun, along with several prominent angel investors. In a statement shared with Business Post, the company said with the market for privacy-enhancing technologies (PETs) growing globally at a compound annual growth rate of 26.6 per cent, there is growing demand. In recognition of this, Silence Laboratories is offering to provide mathematical guarantees for techno-legal expectations as part of a mission to create infrastructure to enable complex data collaborations between enterprises and entities, without any sensitive information being

Image
29-February-2024

MainOne Stretches Submarine Cable to Akwa Ibom

By Modupe Gbadeyanka A submarine cable spanning 45,000km in length known as 2Africa has been landed in Akwa Ibom State by MainOne, an Equinix company. It is one of the world’s largest subsea cable projects and will interconnect Europe, Asia, and Africa, with a design capacity of up to 180Tbps. The cable is the first and only submarine cable system in Nigeria outside of Lagos, and it marks a significant milestone in enhancing broadband connectivity and driving economic development in the South-South, South-East and North-Central regions of Nigeria. The significance of 2Africa lies in its capacity to address critical internet