Economy
Brent, WTI Falls on Hopes of Advanced US, Iran Talks
By Adedapo Adesanya
Crude prices dropped on Tuesday on hopes Iran will resume talks with the US and Israel to end the conflict that has shut the Strait of Hormuz.
Brent crude futures settled at $94.79 a barrel after losing $4.57 or 4.6 per cent, and the US West Texas Intermediate crude finished at $91.20 per barrel after it shed $7.80 or 7.87 per cent.
Talk of a resumption in US-Iran discussions put downward pressure on prices, ignoring the loss of physical barrels of oil that are not moving.
Reuters reported that negotiating teams from the US and Iran could return to Islamabad, Pakistan, this week amid continued engagement on trying to achieve an agreement.
The International Energy Agency said in its monthly report that attacks on energy infrastructure in the Middle East and Iran’s effective closure of the Strait of Hormuz have led to the largest oil supply disruption in history. It said over 10 million barrels per day were lost in March.
The IEA said resuming flows through the Strait of Hormuz remains the single most important variable in easing the pressure on energy supplies, prices and the global economy. The waterway is used for transporting crude and refined products, largely to Asia.
The IEA sharply cut its forecasts for global oil supply and demand growth, with the demand growth forecast for 2026 trimmed by 80,000 barrels per day and supply now expected to decline by 1.5 million barrels per day.
The US military said on Monday that its blockade of the Strait of Hormuz would extend east to the Gulf of Oman and the Arabian Sea. With two ships reportedly turned around in the strait as the blockade started. However, three Iran-linked tankers entered the Gulf and were allowed to pass because their destinations were not Iranian ports.
Iran threatened to respond to the blockade by attacking ports in nations bordering the Gulf.
Before the outbreak of the US-Iran war in late February, around 130 vessels transited the Strait daily. Traffic has since slowed to a trickle, and ships must now navigate both US naval oversight and Iranian directives.
The American Petroleum Institute (API) estimated that crude oil inventories in the US rose 6.10 million barrels in the week ending April 10. In the week prior, US crude oil inventories rose by 3.719 million barrels. Official data from the Energy Information Administration (EIA) will be released later on Wednesday.
By Dipo Olowookere
The bullish run seen lately in the Nigerian equities market continued on Wednesday after it closed the session with a 2.27 per cent growth.
This was influenced by renewed interest in domestic stocks by investors, who are locking funds in some shares with sound fundamentals like Airtel Africa, Aradel Holdings, Dangote Cement, and others.
Data showed that Airtel Africa and Trans-Nationwide Express gained 10.00 per cent to sell for N5,801.40 and N2.97, respectively. Fidelity Bank appreciated by 9.97 per cent to N19.85, Thomas Wyatt advanced by 9.89 per cent to N3.00, and UPDC REIT improved by 9.47 per cent to N10.40.
Conversely, Haldane McCall lost 9.95 per cent to trade at N3.53, McNichols declined by 8.89 per cent to N6.15, Transcorp slid by 5.65 per cent to N40.05, CWG went down by 5.24 per cent to N19.00, and VFD Group crashed by 5.19 per cent to N28.12.
The market breadth index remained positive after the Nigerian Exchange (NGX) Limited ended the day with 32 appreciating stocks and 24 depreciating stocks, indicating strong investor sentiment.
Business Post reports that the insurance sector was under pressure yesterday, resulting in a 0.20 per cent loss, which did not affect the outcome of the market.
The energy space gained 3.85 per cent, the industrial goods segment chalked up 1.89 per cent, the banking index rose by 1.07 per cent, and the consumer goods counter soared by 0.31 per cent.
As a result, the All-Share Index (ASI) added 5,378.70 points to finish at 242,459.98 points compared with the previous day’s 237,083.28 points, and the market capitalisation went up by N3.450 trillion to N155.586 trillion from N152.136 trillion.
The busiest equity during the trading session was Lasaco Assurance, with a turnover of 56.6 million units valued at N104.8 million. Fidelity Bank traded 47.5 million units worth N911.9 million, Linkage Assurance transacted 33.9 million units for N51.2 million, Zenith Bank sold 32.0 million units valued at N3.4 billion, and Sterling Holdings exchanged 30.5 million units worth N233.3 million.
At the close of transactions, 518.4 million shares worth N22.8 billion exchanged hands in 48,495 deals versus the 493.7 million shares valued at N28.0 billion traded in 49,969 deals a day earlier. This implied that the trading volume was up by 5.00 per cent, the trading value was down by 18.57 per cent, and the number of deals decreased by 2.95 per cent.
By Adedapo Adesanya
Oil prices surged over 5 per cent to a two-week high on Wednesday after US President Donald Trump declared that the interim ceasefire agreement with Iran is officially.
Brent futures rose $4.40 or 5.9 per cent to settle at $78.02 a barrel, while the US West Texas Intermediate (WTI) crude increased by $3.64 or 5.2 per cent to $73.52 per barrel.
The American President said an interim deal signed last month to end the war with Iran was “over” and that the US was likely to launch new strikes on Wednesday night following Iranian attacks on US bases in the Gulf and tankers in the Strait of Hormuz.
Asked before a NATO summit in Turkey whether the memorandum of understanding was over, President Trump said: “It’s a very interesting question. To me, I think it’s over. I don’t want to deal with them.”
He later ruled out the restart of full-fledged war with Iran, which pulled oil benchmarks lower from the session’s highest gains of as much as 9 per cent.
A fifth of global oil supplies moved through the Strait before the Iran war began on February 28 after US-Israeli airstrikes against Iran, which led to retaliation that forced Middle Eastern oil producers to cut millions of barrels of oil production.
Iran on Tuesday attacked three commercial vessels transiting the Strait of Hormuz, prompting retaliatory attacks by the US. A Saudi-flagged LNG tanker was struck on its port side, causing an engine room fire, while the supertanker suffered minor damage off the coast of Oman.
In response, US Central Command (CENTCOM) conducted massive offensive airstrikes hitting more than 80 military targets inside Iran while the Trump administration also revoked a temporary sanctions waiver that allowed Iran to sell oil and petrochemicals, cutting off a key revenue stream for the oil producer.
Freight rates for tankers operating in the Gulf have surged as shipowners demand higher risk premiums, while refiners in Asia are scrambling to secure alternative cargoes from West Africa, the US, and Latin America in case Hormuz remains closed.
The International Monetary Fund (IMF) downgraded its 2026 global economic growth forecast to 3 per cent, down from 3.5 per cent posted in 2025, with the impact of the Iran war expected to negate gains made by the ongoing AI boom.
By Adedapo Adesanya
The Independent Petroleum Producers Group (IPPG) is pushing for a harmonised tax regime for Nigeria’s oil and gas sector, citing the burden of more than 270 different taxes, fees and statutory levies imposed on operators.
The Chairman of IPPG, Mr Adegbite Falade, stated this in his keynote address at the opening of the 2026 NOG Energy Week in Abuja.
He said a situation where oil firms pay as many as 270 different types of taxes and levies discourages investment and threatens the viability of many projects.
Mr Falade said while recent government reforms have improved investor confidence, the multiplicity of charges imposed by different government agencies risks undermining those gains.
“Today, the Nigerian oil and gas industry remains the most taxed and levied in the country, and perhaps globally, with over 270 separate fees, taxes and levies,” he said.
According to him, the cumulative burden of these charges has begun to outweigh the incentives introduced under the Petroleum Industry Act (PIA), particularly for smaller indigenous operators managing mature oil assets.
He warned that the situation could force some operators to abandon projects, urging the federal government to harmonise the various charges into a transparent and globally competitive fiscal framework.
“We therefore urge the government to undertake a comprehensive harmonisation of all fees and levies across all agencies to eliminate duplication, ensure transparency in how these charges are computed and applied, and align the overall fiscal burden with the incentive-driven spirit of the PIA,” he said.
Beyond fiscal reforms, the IPPG chairman identified an emerging manpower crisis as another major threat to the industry, noting that the retirement of experienced professionals and recent international oil company divestments have created significant skills gaps that require urgent investment in workforce development.
Mr Falade also called for a comprehensive review of the PIA five years after its enactment, to address implementation challenges and incorporate presidential directives that have improved investment conditions.
He stressed that Nigeria must shift its focus from simply increasing crude oil production to creating greater value through refining, gas processing, power generation, fertiliser production and petrochemicals.
According to him, the country’s vast hydrocarbon resources should serve as a catalyst for industrialisation rather than continued exports of raw crude and gas.
While commending the administration’s reforms that have helped secure more than $8 billion in upstream final investment decisions since 2023 and boosted oil production to about 1.6 million barrels per day, Mr Falade maintained that sustainable growth would depend on creating a more competitive operating environment for investors.
