Economy

Brent Slips to $42 on COVID-19 Spread Fears

Published

5 years ago

14/11/2020

By Adedapo Adesanya

Brent crude returned to the $42 mark on Friday as the oil futures depreciated on the back of the ongoing spread of coronavirus, which has dampened the demand outlook, by extension the mood of the market.

Brent, against which most countries price their crude, moved down by 1.86 per cent or 82 cents to sell at $42.71 per barrel, while the United States’ futures, West Texas Intermediate (WTI) crude, made a 2.41 per cent or 99 cents slide to $40.31 per barrel.

Depressed prices came on the back of a surge in European coronavirus cases with several countries in partial lockdowns and many hoping that restrictions will begin to have an effect as intensive care units fill up.

Countries like Belgium, Germany, Czech Republic, Spain, Poland, Austria and France have experienced spikes while Italy has recorded more than 30,000 new daily cases on three occasions in the last few days, and currently has close to 800,000. Its death toll is the second highest in Europe after the United Kingdom at more than 40,000.

There are also a growing number of cases in the US, Japan and South Korea, all of which are major oil consumers.

Further adding to the negative outcome was the downward review of demand outlook by the International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC) this week.

The Paris-based IEA cut its 2020 global oil demand forecast and now expects world oil demand to contract by 8.8 million barrels per day this year.

The agency further added that it does not expect the prospect of a coronavirus vaccine to significantly boost demand until well into next year. For 2021, the IEA said world oil demand growth will rise by 5.8 million barrels per day, representing an upward revision of 300,000 barrels per day from last month.

For yet another month, OPEC revised down its expectations for global oil demand as the renewed spike in coronavirus cases in major economies is slowing down the oil demand recovery.

In its Monthly Oil Market Report (MOMR), the cartel cut its global oil demand forecast for this year by 300,000 barrels per day compared to last month’s estimate and now sees global oil demand at slightly above 90.0 million barrels per day this year, down by 9.8 million bpd compared to 2019.

The main reasons for the expected even lower demand for this year are the recent new lockdowns and curfews in many major European economies as well as weaker-than-expected demand in the developed economies in the Americas in the third quarter of 2020.

The weaker oil demand recovery is expected to continue into 2021, according to OPEC, which cut its estimate for global oil demand next year, too. In 2021, oil demand is expected to grow by 6.2 million barrels per day compared to 2020. This is a downward revision of 300,000 barrels per day compared to OPEC’s October forecast.

Next year, total global demand is expected to reach 96.3 million barrels per day, still lower than the demand before the pandemic.

At the same time, supply is rising as Libya opens the taps. The country’s production rose to 1.145 million barrels a day on Friday, according to a spokesman for its state-run National Oil Corporation (NOC)

However, the silver lining still remains as vaccines may roll out soon following announcement from Pfizer and BioNTech earlier in the week. This indicates that there are hopes that a safe and effective vaccine would help bring an end to the coronavirus pandemic that has infected more than 53.1 million and claimed over 1.3 million lives.

Economy

NBA Demands Suspension of Controversial Tax Laws

Published

1 day ago

24/12/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.

In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.

A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.

To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”

“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.

It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”

“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.

“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.

“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.

“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.

Economy

MRS Oil, Two Others Raise NASD Bourse Higher by 0.52%

Published

1 day ago

24/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.

The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.

Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.

Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.

Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.

The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.

By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.

In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.

Economy

NGX All-Share Index Soars to 153,354.13 points

Published

1 day ago

24/12/2025

Dipo Olowookere

By Dipo Olowookere

It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.

The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.

Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.

Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.

At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.

This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.

VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.

In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.