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Brent, WTI Appreciate on Rising US Demand, Lower Output

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West Texas Intermediate WTI

By Adedapo Adesanya

The price of Brent futures rose by $1.17 or 1.5 per cent to $79.54 per barrel on Friday, while the US West Texas Intermediate (WTI) futures grew by $2.02 or 2.7 per cent to $76.78 a barrel after data from the United States showed crude output was declining while fuel demand was growing.

Despite the daily gains, Brent and WTI declined for a second week in a row, with the former posting a fourth straight monthly decline as disappointing US economic data and uncertainty over interest rates weighed on the demand outlook.

The global benchmark declined about 3 per cent this week after falling about 5 per cent last week, while WTI slid about 1 per cent this week after losing about 6 per cent last week.

For the month, Brent slid less than 1 per cent in April, while WTI gained about 1 per cent. That was the first monthly increase in WTI in six months.

The US Federal Reserve, the European Central Bank (ECB), and the Bank of England are all expected to continue raising the key interest rates at their upcoming policy meetings.

The US Federal Reserve’s decision will be announced next week after the May 2-3 rate-setting meeting.

These developments brought oil back to the levels from before the surprise announcement of additional cuts by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) in early April.

This is as fears of recessions returned and underwhelming US consumer and GDP data further weighed on oil prices.

Meanwhile, crude production in the United States fell in February to 12.5 million barrels per day, its lowest since December. Fuel demand rose to nearly 20 million bpd, its highest since November, according to the Energy Information Administration (EIA).

EIA data this week also showed US crude oil and gasoline inventories fell more than expected last week as demand for motor fuel picked up ahead of the peak summer driving season.

The EIA reported an inventory draw of 5.1 million barrels for the week to April 21.

This compared with another draw, of 4.6 million barrels, for the previous week and an estimated 6-million-barrel inventory decline for the week to April 21, as reported by the American Petroleum Institute (API).

Data showed this week that U.S. consumer confidence declined in April, the third drop in consumer confidence in four months.

In addition, US economic growth slowed sharply to 1.1 per cent in the first quarter from 2.6 per cent growth in the fourth quarter, as companies cut down on investments amid rising interest rates and borrowing costs.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Economy

Nigeria’s Oil Production Drops 64,000b/d to 1.401m/d in April 2025

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libya oil production

By Adedapo Adesanya

Nigeria’s average daily crude oil production declined by 64,000 barrels per day or 4.4 per cent to 1.401 million barrels per day in April 2025 from 1.465 million barrels per day recorded in the preceding month (March).

The Organization of Petroleum Exporting Countries (OPEC) April Monthly Oil Market Report revealed this, saying the numbers are based on direct communication from the producing countries.

The report also indicated that oil production fell by 6.6 per cent below OPEC’s 1.5 million barrels per day quota, and approximately 32 per cent belief of the country’s 2025 budget target of 2.06 million barrels per day.

Nigeria’s persistent shortfalls in meeting government production targets comes from challenges such as underinvestment and rampant oil theft, all contributing to suppressed output.

Nigeria’s oil production peaked at 2.5 million barrels decades ago and despite ambitious 3-4 million barrels promises by subsequent governments, the highest actualisation in recent times have been 1.8 million barrels per day.

The decline in oil production since then and the falling oil prices in the international market are likely to strain fiscal revenues, worsening budgetary pressures

Market analysts have pointed out that this will impact national reserves, thereby reducing the availability of resources for developmental spending.

While the government has no control over global oil prices, it can, to some extent, meet its OPEC production quota.

Therefore, the government must intensify efforts by enforcing stricter penalties for oil theft, while fostering greater collaboration with local communities.

Simultaneously, there is a need to attract investment in the sector by ensuring that regulatory bodies and the judiciary work together to provide an enabling environment for investment and modernisation of oil infrastructure.

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Economy

USDT/Naira Stablecoin Pair Emerges Most Traded on Crypto Exchanges

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USDT-Naira Stablecoin Pair

By Modupe Gbadeyanka

A new report has shown the wide adoption of digital currencies in Nigeria despite efforts by the authorities to discourage the use of crypto.

The Central Bank of Nigeria (CBN) has yet to lift the ban of crypto transactions through the banking system in the country after almost five years.

In a report made available to Business Post by a venture capital firm, Hashed Emergent, it was stated that the USDT/Naira stablecoin pair has become the most traded on centralized exchanges, with stablecoin transfers in Nigeria nearing $3 billion in the first quarter of 2024, signalling the practical adoption of blockchain for real-world challenges like inflation and cross-border payments.

Last year, Nigeria ranked second globally for crypto adoption, according to Chainalysis, with $59 billion in crypto value received—$24 billion of that in stablecoins.

Stablecoin trading has overtaken Bitcoin trading on centralized exchanges, reflecting changing behaviour: for many, crypto is not speculative—it’s practical; it is how people hedge against inflation, send money, and make real-world payments.

According to the report, national agencies and multiple state governments are already implementing blockchain-based solutions across areas like identity verification, land registries, education records, and healthcare systems.

These aren’t pilots; they’re operational systems designed to improve transparency, efficiency, and trust in public services.

However, integration into existing public infrastructure remains a key challenge. Many legacy systems lack the technical readiness or interoperability needed for seamless adoption, and institutional capacity gaps—such as limited digital skills and fragmented procurement processes—continue to slow implementation.

Without addressing these bottlenecks, the long-term impact of public sector blockchain adoption may remain limited despite early momentum.

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Economy

ExxonMobil Plans $1.5bn Investment in Usan Deepwater Oil Field

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ExxonMobil PENGASSAN protest

By Adedapo Adesanya

ExxonMobil is planning a $1.5 billion investment in deepwater exploration and development of the Usan oilfield in Nigeria.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed this in a statement, noting that commitment will be implemented between this current quarter (Q2 2025) and 2027.

This announcement, it said, was made during a visit by ExxonMobil’s Managing Director in Nigeria, Mr Shane Harris, to the Commission’s Chief Executive of the NUPRC, Mr Gbenga Komolafe.

The company proposed a Final Investment Decision (FID) for late Q3 2025, subject to final Field Development Plan (FDP) approval as well as internal and partner funding approvals, the upstream regulator added.

According to the NUPRC, this is in addition to investment targeted at the accelerated development of the Owowo and Erha deepwater oil fields, amongst others.

Mr Harris, while speaking, stated that the planned capital deployment reflects ExxonMobil’s confidence in Nigeria’s upstream potential and its dedication to playing a pivotal role in the sector’s growth.

He also voiced ExxonMobil’s support for the NUPRC’s “Project 1 Million Barrels” initiative, which aims to increase Nigeria’s crude oil production to 2.4 million barrels per day in the medium term.

The initiative has gotten commitments from other oil firms operating in the country since it was floated last year.

On his part, the NUPRC Chief Executive, Mr Komolafe, welcomed the announcement, reaffirming the NUPRC’s role as a business enabler and pledging regulatory support to facilitate ExxonMobil’s operations.

Mr Komolafe highlighted the importance of sustained collaboration between regulators and investors to meet Nigeria’s production and energy security goals, highlighting compliance with the Domestic Crude Supply Obligation (DCSO) and the need for transparent pricing and accountability in the sector.

“The commission is committed to the implementation of Section 109 of the PIA, which addresses the subject of willing buyer, willing seller, and we urge producers to comply,” he stated.

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