Economy

Brent Sells for $75 as Impact of Omicron on Demand Eases

Published

3 years ago

11/12/2021

By Adedapo Adesanya

Brent crude returned to the $75 per barrel mark buoyed by easing concerns over the Omicron coronavirus variant’s impact on global economic growth and fuel demand.

On Friday, the price went up by 73 cents or 0.98 per cent to $75.15 per barrel, while the price of the West Texas Intermediate (WTI) crude futures also gained 73 cents or 1.03 per cent to trade at $71.67 per barrel.

Crude oil recorded six consecutive weeks of losses which worsened in the last week of November, shedding more than 15 per cent.

However, oil markets at large heaved a sigh of relief this week upon hearing that the Omicron variant of COVID-19 might not be that much of a potent demand disruption factor as previously feared.

With demand being largely stagnant and global crude inventories still well below the 5-year average, price continued its recovery.

But there remain several downside risks for global demand including weaker domestic air traffic activity in China, owing to tighter travel restrictions, and weaker consumer confidence after repeated small outbreaks.

This is coupled with potential bankruptcies of property giants Evergrande and Kansa still looming on the horizon.

On Thursday, rating agency, Fitch, downgraded property developers China Evergrande Group and Kaisa Group, saying they had defaulted on offshore bonds.

That reinforced fears of a potential slowdown in China’s property sector, as well as the broader economy of the world’s biggest oil importer.

A stronger Dollar, rising ahead of US inflation data, also weighed on oil prices.

Oil typically falls when the greenback firms because it makes oil more expensive for buyers holding other currencies.

On the other hand, soaring US inflation is adding to the bullish sentiment, largely counteracting the above-mentioned factors.

Market analysts warn that with the new virus in town threatening global demand and the Organisation of the Petroleum Exporting Countries and allies (OPEC+) moving ahead with its planned January oil output rise of 400,000 barrels per day, oil remains vulnerable to downside losses.

S&P Global Platts forecasts that Iran and Western powers will reach a nuclear deal in the first quarter, allowing more Iranian oil to return to the market by the end of next year.

There is also likely to be a rising call on oil from OPEC in mid-2022, the company said.

If there is no deal with Iran and there are supply disruptions, $100 oil becomes a possibility, it added.

Over in the US, the latest rig-count data from Baker Hughes implied a potential output increase, with the number of active US rigs drilling for oil up by four to 471 this week.

Economy

Nigeria Targets $90bn from Textile, Livestock by 2035

Published

58 seconds ago

25/04/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

About $90 billion is expected to be generated in economic value by 2035 from new strategies developed by the Nigerian government for agribusiness expansion and livestock transformation.

To achieve this, the National Economic Council (NEC) chaired by the Vice President, Mr Kashim Shettima, has approved the establishment of a Cotton, Textile and Garment Development Board.

At the NEC meeting on Thursday in Abuja, steps to reposition Nigeria’s economy and tackle insecurity at its roots were discussed by the participants, which included the governors of the 36 states of the federation.

The new regulatory body for the cotton, textile and garment sector of Nigeria will have governors representing the six geo-political zones, with Ministers of Agriculture and Food Security, Budget and Economic Planning, and Industry, Trade and Investment as members.

It would be domiciled in the presidency, with representation of the relevant public sector stakeholders, and funded from the Textile Import Levy being collected by the Nigeria Customs Service (NCS), though it would be private sector-driven.

“Nigeria is a nation where cotton can thrive in 34 states. Yet our production level remains a fraction of our potential.

“We currently produce only 13,000 metric tons, while we continue to import textiles worth hundreds of millions of dollars. This is not just an economic imbalance. It is an invitation to act,” he added.

“Our goal is not just regulation. It is a revival. This is our opportunity to re-industrialise, to empower communities, and to restore pride in local production,” the VP stated.

Also at the meeting yesterday, the council approved the establishment of the Green Imperative Project (GIP), with a national office in Abuja and regional offices across the six geopolitical zones.

Economy

CSCS, FrieslandCampina, Geo-Fluids Push NASD OTC Exchange Higher by 0.55%

Published

3 hours ago

25/04/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 0.55 per cent on Thursday, April 24 after the prices of three stocks on the platform ended in green.

This added N10.48 billion to the market capitalisation of the bourse, closing at N1.918 trillion compared with the N1.908 trillion it ended in the preceding session.

In the same vein, the NASD Unlisted Security Index (NSI) went up during the session by 17.90 points to 3,276.98 points from the previous session’s 3,259.08 points.

The market was dominated by bargain-hunting activities due to renewed investor confidence. None of the securities on the NASD ended in red yesterday.

However, Central Securities Clearing System (CSCS) Plc gained N1.97 to close at N21.71 per unit compared with Wednesday’s price of N19.74 per unit, FrieslandCampina Wamco Nigeria Plc appreciated by 15 Kobo to end at N37.95 per share, in contrast to midweek’s value of N37.80 per share, and Geo-Fluids Plc grew by 8 Kobo to settle at N1.70 per unit versus the preceding day’s price of N1.62 per unit.

During the trading day, the volume of securities transacted by the market participants increased by 19,558.9 per cent to 206.2 million units from 1.05 million units, the value of transactions jumped by 13,509.2 per cent to N354.1 million from N2.6 million, and the number of deals rose by 245.5 per cent to 38 deals from 11 deals.

When trading activities finished for the day, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units sold for N520.9 million, followed by Geo-Fluids Plc with 250.9 million units worth N441.0 million, and Okitipupa Plc with 153.6 million units valued at N4.9 billion.

Also, Okitipupa Plc remained the most active stock by value (year-to-date) with 153.6 million units valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 14.9 million units worth N573.2 million, and Impresit Bakolori Plc with 533.9 million units valued at N520.9 million.

Economy

Naira Value Remains N1,603/$1 at Official Market

Published

3 hours ago

25/04/2025

Adedapo Adesanya

By Adedapo Adesanya

The value of the Naira slightly appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, April 24, after coming under pressure in two consecutive trading session.

Yesterday, it gained 0.03 per cent or 50 Kobo on the greenback to sell for N1,603.01/$1 compared with the previous day’s rate of N1,603.51/$1, according to data from the Central Bank of Nigeria (CBN).

Similarly, the Nigerian currency improved its value against the Pound Sterling in the official market yesterday by N9.05 to close at N2,128.50/£1 compared with Wednesday’s value of N2,137.55/£1 and gained N17.69 against the Euro to finish at N1,819.89/€1, in contrast to midweek’s value of N1,837.58/€1.

However, in the black market, the Nigerian Naira depreciated against the Dollar during the trading session by N2 to settle at N1,607/$1 versus Wednesday’s value of N1,605/$1.

The local forex market reacted to the assurance given by apex bank in the ongoing IMF Spring Meetings in the US that it would continue to drive policies that will support the FX market.

Meanwhile, the cryptocurrency market witnessed recoveries after profit-taking amid declining US Dollar index, which is largely tied to mixed signals out of the world’s largest economy.

Profit-taking and conflicting messages from the President Donald Trump of the United States over a trade war with China have dominated the market, including comments from Treasury Secretary Scott Bessent that there’s no unilateral plan to lift US tariffs on Chinese goods, contradicting Trump’s suggestion that tariff rates could drop in the coming weeks.

Mr Trump has signaled he would not remove Federal Reserve Chair Jerome Powell and suggested a softer stance on trade with China.

Investors continue to struggle to interpret the policy direction as President Trump also hinted at a “fair deal” with the world’s second-largest economy.

Yesterday, Cardano (ADA) rose by 4.7 per cent to $0.7191, Dogecoin (DOGE) appreciated by 4.2 per cent to $0.1811, Solana (SOL) expanded by 2.8 per cent to $152.84, and Litecoin (LTC) improved by 2.4 per cent to $84.66.

Further, Ripple (XRP) jumped by 1.3 per cent to $2.13, Bitcoin (BTC) added 1.1 per cent to sell at $93,534.98, Binance Coin (BNB) soared by 0.7 per cent to $608.65, and Ethereum (ETH) increased by 0.2 per cent to $1,774.57, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.