Economy

Brent Returns to $44 over Supportive Crude Data, Instability Fears

Published

6 years ago

05/08/2020

By Adedapo Adesanya

Brent crude returned to the $44 per barrel region on Tuesday following expectations of positive data on US crude inventories and fear of instability as explosions rocked Middle Eastern country, Lebanon.

The international benchmark rose by 18 cents or 0.41 per cent yesterday to trade at $44.33 per barrel, while the US West Texas Intermediate (WTI) crude gained 52 cents or 1.27 per cent to trade at $41.53 per barrel.

The American Petroleum Institute (API) reported on Tuesday a draw in crude oil inventories of 8.587 million barrels for the week ending July 31.

Analysts had predicted a modest inventory draw of 3.267 million barrels.

In the previous week, the API reported a significant and unexpected draw in crude oil inventories of 6.829 million barrels after analysts had predicted a small build.

The market will, however, be looking at the more closely watched data from the Energy Industry Administration (EIA) which is due Wednesday morning.

Analysts are expecting inventories data from the EIA to show a fall of 4.1 million barrels.

According to the group, US crude inventories fell 10.6 million barrels last week, the largest drop of the year.

Also, investors were on the lookout as an explosion rocked Lebanon’s main port in the capital Beirut, stoking fears over instability in the region.

Footage showed what appeared to be a fire, followed by crackling lights and then a larger explosion as an enormous cloud of smoke engulfed the area around the Port of Beirut. Authorities said it was caused by highly explosive materials at the port, but didn’t immediately say whether it was an accident or an attack.

Meanwhile, worries remain about overall demand as the COVID-19 pandemic continues. The global tally of confirmed cases climbed above 18.3 million on Tuesday.

In addition, the market is also weighing the relaxation of curbs on output by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, which has continued to shadow the market, analysts said.

OPEC+ pledged to cut output by 9.7 million barrels a day beginning in May, easing to 7.7 million barrels a day this month and running through the end of the year.

Countries that exceeded the earlier curb are supposed to further curtail output, which means output is targeted to rise by around 1.5 million barrels a day beginning this month, though sceptics doubt that past laggards such as Iraq and Nigeria in the agreements will fully comply.

Economy

Nigeria’s Finance Minister Rules Out Seeking IMF Loan

Published

26 minutes ago

17/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The Minister of Finance, Mr Wale Edun, says Nigeria has no immediate plans to approach the International Monetary Fund (IMF) for financial assistance.

Mr Edun made this known at the African Finance Ministers’ briefing during the IMF and World Bank Annual Meetings on Thursday in Washington, D.C. United States.

He said reliance on ongoing domestic economic reforms was yielding positive results.

According to him, Nigeria’s reforms over the past two years have restored policy credibility and strengthened resilience against global economic shocks affecting many African economies, adding that the country has prioritised market-based adjustments, avoiding administrative controls, particularly in foreign exchange and petroleum pricing mechanisms.

Mr Edun reaffirmed that Nigeria would continue to rely on internal policy measures rather than seeking multilateral lending support at this time.

However, he urged faster and more coordinated financial assistance for African countries amid discussions on a proposed $50 billion global support package.

The Minister said Nigeria had built buffers through reforms, but noted that several African nations remained highly exposed and required urgent external financial support.

He said Nigeria’s reliance on market mechanisms had enabled smoother economic adjustments, reduced disruptions, and sustained the country’s macroeconomic trajectory amid global uncertainties.

However, on Monday, the |Minister said Nigeria would seek stronger international financial support at this week’s IMF-World Bank ‌Spring Meetings as the Iran war lifts fuel costs at home and complicates reforms.

He said ahead of the meeting that surging crude prices had some clear benefits for the country, which is Africa’s top oil producer, boosting foreign exchange earnings.

“But the ⁠shock comes at a critical transition point, intensifying inflationary pressures and raising living costs for households,” he added.

Economy

NASD Exchange Depreciates 0.29%

Published

3 hours ago

17/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange fell by 0.29 per cent on Thursday, April 16, after two securities plunged at the close of business, offsetting the gains recorded by three securities.

According to data, the NASD Unlisted Security Index (NSI) went down by 11.11 points to close at 3,862.98 points compared with the previous day’s 3,874.09 points, and the market capitalisation shrank by N6.64 billion to close at N2.311 trillion compared with the previous day’s N2.317 trillion.

Yesterday, FrieslandCampina Wamco Nigeria Plc declined by N1.36 to trade at N97.64 per share versus Wednesday’s closing price of N99.00 per share, and Central Securities Clearing System (CSCS) Plc slipped by N1.16 to sell at N58.00 per unit compared with the preceding day’s N59.16 per unit.

However, NASD Plc appreciated by N1.14 to N38.50 per share from N37.36 per share, UBN Property Plc improved its share price by 20 Kobo to close at N2.18 per unit versus N1.98 per unit, and Lighthouse Financials Plc added 6 Kobo to sell at 72 Kobo per share, in contrast to the 66 Kobo per share it was traded at midweek.

Trading data showed that the value of securities surged by 124.9 per cent to N64.9 million from N28.9 million, the volume of securities increased by 18.4 per cent to 597,775 units from 505,075 units, and the number of deals rose by 2.5 per cent to 41 deals from 40 deals.

At the close of business, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 58.8 million units exchanged for N3.9 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.

GNI Plc was also the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units sold for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.

Economy

Naira Gains N1.44 Against Dollar at Official Market

Published

3 hours ago

17/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The value of the Naira improved against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) by N1.44 or 0.11 per cent on Thursday, April 16, to N1,342.30/$1 from Wednesday’s N1,343.74/$1.

In the same vein, the domestic currency appreciated against the Pound Sterling in the official market during the session by N3.56 to close at N1,819.36/£1 compared with the previous rate of N1,822.92/£1, and against the Euro, it gained N3.99 to trade at N1,581.09/€1, in contrast to the N1,585.08/€1 it was traded at midweek.

At the black market segment, the Naira appreciated against the greenback yesterday by N5 to sell at N1,375/$1 versus the preceding session’s N1,380/$1, and at the GTBank FX desk, it improved by N16 to settle at N1,355/$1 compared with the previous day’s N1,371/$1.

The Central Bank of Nigeria (CBN) data revealed that NFEM interbank turnover decreased to N72.255 million across 82 deals on Thursday, from N114.347 million.

The relative appreciation of the official spot rate suggests there is no significant demand for foreign payments. Meanwhile, external reserves remain at $48.70 billion, down from the 2009 peak of $50 billion amidst uncertainties in the global commodities market.

The global market is looking at forthcoming peace talks between the US and Iran with hopes that it would resolve disruptions to Middle Eastern energy supplies caused by the ongoing war.

As for the cryptocurrency market, it recorded a mixed outcome, as traders weighed possible scenarios ahead of next week’s US-Iran cease-fire deadline.

The market is heavily short, raising the risk of a sharp short squeeze that some traders say could push prices toward $125,000 in the coming months.

Solana (SOL) appreciated by 2.4 per cent to $87.41, Ripple (XRP) jumped 1.5 per cent to $1.42, Cardano (ADA) rose 0.9 per cent to $0.2525, Binance Coin (BNB) increased by 0.5 per cent to $628.32, Dogecoin (DOGE) gained 0.3 per cent to finish at $0.0969, and TRON (TRX) expanded by 0.1 per cent to $0.3257.

On the flip side, Ethereum (ETH) depreciated by 1.6 per cent to $2,320.35, and Bitcoin (BTC) went down by 0.5 per cent to $74,677.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.