Economy

Brent Falls to $27 as End to Saudi-Russia Price War Looks Bleak

Published

6 years ago

28/03/2020

By Adedapo Adesanya

Brent Crude tumbled by 2.44 percent or 70 cents to $27.95 per barrel on Friday night after Saudi Arabia said it hasn’t recently held talks with Russia to end the price war that began earlier this month.

This also caused the West Texas Intermediate crude oil to slide by 4.8 percent or $1.09 to $21.51.

Oil prices have crashed more than 30 percent to their lowest level in nearly three years in 2020 following the aftermath of the final meeting between the members of the Organisation of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia and their allies led by Russia, where the latter refused to agree to extra output cuts.

From next month, countries party to that deal will be free to supply without restraint into a market that is showing signs of an oil glut as demand weakens due to the coronavirus.

On Friday, a spokesperson of the Saudi Arabia Energy Ministry said that the two countries have had no discussion of a joint agreement to balance oil markets.

“There have been no contacts between Saudi Arabia and Russia energy ministers over any increase in the number of OPEC+ countries, nor any discussion of a joint agreement to balance the oil markets,” Saudi state-run news agency SPA quoted an oil ministry spokesman as saying.

Saudi Arabia, Russia and other oil producers, including Nigeria, have since started making plans to battle for market share, just as the coronavirus pandemic has crushed demand for the black gold.

Saudi Arabia has said it will supply its customers with 12.3 million barrels per day of crude in April and May, which is 300,000 barrels per day above its maximum sustainable capacity — and it has begun heavily discount of its official formula selling prices up to $10.

Russia could add 200,000 – 300,000 barrels per day within a month, and has the potential for up to 500,000 barrels per day of additional supply in the longer term, while other oil producing states will also add theirs to the mix.

With the COVID-19 and three billion people in lockdown, global oil requirements could drop by 20 percent, International Energy Agency (IEA) head, Mr Fatih Birol said as he called on major producers such as Saudi Arabia to help to stabilise oil markets.

Market analysts see this happening as the kingdom despite its cheap oil, is not getting any buyers as the premise brought about by the outbreak has reduced demand a lot and will continue till with close to 600,000 cases and almost 27,000 deaths.

Economy

Investors Lose N3.1bn as NASD Exchange Remains Red

Published

17 minutes ago

11/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange entered a third straight day of losses after it fell by 0.12 per cent on Wednesday, June 10.

The depletion trimmed the market capitalisation further by N3.1 billion to N2.590 trillion from N2.593 trillion, and cut the NASD Unlisted Security Index (NSI) by 5.19 points to 4330.12 points from 4,335.31 points.

11 Plc lost N22.21 during the session to finish at N221.00 per share versus the previous day’s N243.21 per share, MRS Oil Plc depreciated by N6.90 to N158.10 per unit from N165.00 per unit, and Central Securities Clearing System (CSCS) Plc decreased by N2.81 to N78.32 per share from N81.13 per share.

On the flip side, FrieslandCampina Wamco Nigeria Plc went up by N9.27 to N183.08 per unit from N173.81 per unit, Nitrox Industrial Gases Plc added N1.92 to its value to close at N23.80 per share compared with the preceding day’s N21.88 per share, and Food Concepts Plc gained 10 Kobo to exchange at N2.58 per unit, in contrast to Tuesday’s closing price of N2.48 per unit.

At the close of business, the volume of securities traded by investors contracted by 92.6 per cent to 117,374 units from 1.6 million units, and the value of securities moderated by 80.5 per cent to N12.2 million from N62.3 million, while the number of deals increased by 4.9 per cent to 43 deals from 41 deals.

Great Nigeria Insurance (GNI) Plc finished the day as the most traded stock by value on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units traded for N6.5 billion, and CSCS Plc with 65.2 million units exchanged for N4.4 billion.

GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million

Economy

Naira Crashes to N1,362.05/$1 at Official Window After N1.50 Loss

Published

1 hour ago

11/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira fell against the United States Dollar by N1.50 or 0.11 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) to sell at N1,362.05/$1 on Wednesday, June 10, compared with the N1,360.55/$1 it traded on Tuesday.

Also, the local currency lost N4.33 against the Pound Sterling in the official window yesterday to trade at N1,827.33/£1 versus the preceding day’s N1,823.00/£1, and depreciated against the Euro by N1.74 to quote at N1,575.35/€1, in contrast to N1,573.61/€1 of the previous session.

However, at the GTBank forex desk, the Naira gained N3 against the US Dollar to sell at N1,370/$1 versus N1,373/$1, and at the parallel market, it remained unchanged at N1,380/$1.

Updated data from the Central Bank of Nigeria (CBN) showed that foreign reserves surged further due to additional inflows from various sources. Nigeria’s gross external reserves increased to $50.439 billion, its highest level since March 2026, reflecting sustained inflows from oil revenue and other FX sources.

Also, the International Monetary Fund (IMF) has said increased confidence in the Naira, supported by lower and more stable inflation, would encourage households, businesses and investors to hold more local currency assets and reduce reliance on foreign currencies.

The global lender, in a recent assessment, stressed the importance of strengthening the CBN’s operational framework and aligning liquidity management operations more closely with monetary policy objectives.

In the cryptocurrency market, there were recoveries from recent losses as US headline inflation rose an expected 0.5 per cent in May, but the beat on the core rate — which cuts out food and energy costs — pleased markets. The core rate, though, rose just 0.2 per cent in May against forecasts for 0.3 per cent.

The print reinforces the view that the US Federal Reserve will keep interest rates at 350-375 basis points at its June 17 meeting, but is likely to increase rates by 25 basis points by the end of the year.

Cardano (ADA) went up by 2.4 per cent to $0.1647, Bitcoin (BTC) rose by 2.3 per cent to $62,794.09, Binance Coin (BNB) jumped 1.8 per cent to $596.23, Ethereum (ETH) grew by 1.7 per cent to $1,658.12, and Solana (SOL) also soared by 1.7 per cent to $65.23.

Further, Dogecoin (DOGE) appreciated by 1.5 per cent to $0.0849, Ripple (XRP) expanded by 0.4 per cent to $1.11, and TRON (TRX) increased by 0.05 per cent to $0.3218, while the US Dollar Tether (USDT) lost 0.10 per cent to close at $0.9989, and the US Dollar Coin (USDC) declined by 0.01 per cent to $0.9997.

Economy

Oil Prices Jump as Iran Shuts Down Strait of Hormuz

Published

2 hours ago

11/06/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil prices jumped early on Thursday as Iran declared the critical energy chokepoint, the Strait of Hormuz, closed ‌after the US launched additional strikes against the Middle East oil producer.

Brent futures rose $1.48 or 1.59 per cent to $94.58 per barrel, and the US West Texas Intermediate (WTI) crude climbed $1.71 or 1.90 per cent to $91.74 a barrel.

Iran’s top joint military command announced the closure of the Strait of Hormuz on Thursday, including oil tankers and commercial ships, saying any vessel attempting ⁠passage will be shot at.

Market analysts noted that the renewed escalation in fighting prompted oil prices to rally in early morning trading.

On Wednesday, the US military said on X that commercial ships continue to transit in and out of the strait. It also said no US warships have been struck in the strait, after Iran’s state media reported US ships near the waterway were targeted by missiles and drones.

US forces began launching additional strikes against multiple targets in Iran on Wednesday, the latest in an escalating exchange of attacks that threaten ‌to ⁠reignite a full-scale war, which was paused in early April when the two sides agreed to a fragile ceasefire.

Defence Secretary Pete Hegseth held a press briefing announcing further attacks on Iran, saying, “If we need to negotiate with bombs, we’ll negotiate with bombs.” US Central Command later described those attacks as targeting “Iranian military surveillance capabilities, communication systems, and air defence sites across Iran.”

In response to the attacks, Iran’s top joint military command then announced that the Strait was closed to all shipping.

President Donald Trump said the strikes would stop shortly, but that they would continue if Iran’s leaders did not sign an agreement with the US immediately.

Iran’s months-long blockade of the strait, which normally carries a fifth ⁠of global oil and gas shipments, has kept oil prices elevated.

The latest exchange of strikes between the US and Iran marks the most significant escalation in the conflict since both countries agreed to a fragile ceasefire in April. Since then, oil inventories have drained dramatically, and no tangible breakthroughs have been announced.

Crude oil inventories in the US decreased by 7.2 million barrels during the week ending June 5, according to new data from the Energy Information Administration (EIA). The EIA’s data release follows figures that were released by the American Petroleum Institute (API) a day earlier, which reported that crude oil inventories saw a draw of 9.119 million barrels in the period.