Crude Oil Bounces Back on Heavy US Inventory Draw

Image

By Adedapo Adesanya

Crude oil prices returned bullish on Wednesday after the United States Energy Information Administration (EIA) reported a crude oil inventory draw of 4.8 million barrels for the week to February 4.

The agency said US crude stocks fell by 4.8 million barrels last week to 410.4 million barrels, their lowest since October 2018, while overall product supplied, a proxy for demand, hit a record 21.9 million barrels per day over the past four weeks, government data showed.

A day earlier, the American Petroleum Institute (API) surprised the market with an inventory draw.

The draw, estimated by the EIA compared with an inventory decline of 1 million barrels for the previous week. Inventories remain below the seasonal five-year average supporting higher oil prices.

This supported the lifting of the Brent crude price by 77 cents or 0.9 per cent to $91.52 per barrel as the United States West Texas Intermediate crude rose by 30 cents or 0.5 per cent to $89.66 a barrel.

At the previous session, the market was pressured by the headway in talks between the US and Iran on its nuclear programme which hit a snag last year. This signalled that an agreement when reached could allow more oil export from the Middle East producer.

The deal could return more than 1 million barrels per day of Iranian oil to the market, boosting global supply by about 1 per cent and its legitimacy would bring relief to the tight oil market and to rallying oil prices.

This is coming at a time when the market is concerned about spiking geopolitical tensions in the United Arab Emirates (UAE), which has been hit by attacks from Yemen’s Houthi group, and over Russia due to the presence of thousands of its troops near Ukraine’s border.

The President of France, Mr Emmanuel Macron said steps could be taken to de-escalate the Russia-Ukraine crisis after a meeting with Russian President Vladimir Putin and called on all sides to stay calm.

To tackle the high prices, the US Biden administration responded to high prices by again stating this week that it has been talking with large producers about more output.

This is as well as the possibility of additional strategic releases from large consumers, as it did late last year – which didn’t move the market much due to recovery from the Omicron scare.

President Joe Biden and King Salman of Saudi Arabia spoke on Wednesday, which included a discussion of maintaining stable global energy supplies.

Share
Related Stories
Image
03-March-2024

Dangote Cement’s African Subsidiaries Contribute 41.2% to FY 2023 Sales

By Dipo Olowookere Dangote Cement Plc has revealed that sales from its factories outside Nigeria, its base, improved in the 2023 fiscal year by 12.7 per cent, contributing about 41.2 per cent to its total volume for the period under review, with its Nigerian operations accounting for the rest. In its audited financial statements for the year ended December 31, 2023, filed to the Nigerian Exchange (NGX) Limited, the cement maker said revenue generated from its pan-African operations increased by a record 123.2 percent to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion. Business Post reports that

Image
05-March-2024

Oil Market Falls Despite OPEC+ Cut Extension

By Adedapo Adesanya  The oil market fell slightly on Monday, as demand headwinds outweighed a widely expected extension of voluntary output cuts through the middle of the year by the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Brent futures dropped 81 cents to quote at $82.74 a barrel while the US West Texas Intermediate (WTI) weakened by $1.22 to trade at $78.75 a barrel. The OPEC+ producers agreed over the weekend to extend their voluntary oil output cuts of 2.2 million barrels per day into the second quarter to cushion the market amid global economic concerns and

Image
04-March-2024

Peter Obi Laments Nigeria’s Dependence on War-Torn Ukraine for Food

By Adedapo Adesanya The presidential candidate of the Labour Party in the 2023 polls, Mr Peter Obi, has lamented Nigeria’s dependence on Ukraine, a country ravaged by war, for food aid. Mr Obi, in a statement on Monday, expressed dissatisfaction at the current economic realities and recounted times when the Nigerian economy was faring better than that of Ukraine in 2015. “Ukraine cultivates over 60 per cent of its arable land, whereas Nigeria has over 60 per cent uncultivated arable land. “Despite the conflict, Ukraine feeds itself, and exports agricultural products worth over $25 billion which is about the same

Image
04-March-2024

NGX Posts 3.27% W-o-W Loss, MTN Closes as Worst-Performing Stock

By Dipo Olowookere The Nigerian Exchange (NGX) Limited recorded a week-on-week loss of 3.27 per cent last week as a result of profit-taking, especially after the Central Bank of Nigeria (CBN) raised the interest rate to 22.75 per cent from 18.75 per cent to attract hot money and slow down inflation, which is almost at 30.0 per cent. MTN Nigerian ended the trading week as the worst-performing stock after it shed 18.91 per cent to N200.70, and Sunu Assurances declined by 18.18 per cent to N1.71. Nestle Nigeria also dropped 18.18 per cent to sell at N900.00, CWG fell by

More Stories
Image
28-March-2020

NASD Transacts 39.2m Stocks as Investors Adjust to Remote Trading

By Adedapo Adesanya Securities totalling 39.2 million units were transacted on Friday, March 27, at the NASD Over-the-Counter (OTC) Securities Exchange, 38,936 percent increase or 39.1 million units higher than the 100,380 units recorded at the previous session. However, the rise in the trading volume was not enough to push the key parameters up at the ended of the session as the market closed flat for the second straight day. Trading activities were done remotely due to the coronavirus pandemic, which has forced many businesses and activities to shut down so as to stop the spread of the virus. At

Image
22-July-2018

Association of Advertising Agencies of Nigeria Elects Odigbo as President

By Dipo Olowookere Managing Director of DDB Lagos, Mr Ikechi Odigbo, has been elected as President of Association of Advertising Agencies of Nigeria (AAAN). Mr Odigbo emerged leader of the association at the 45th Annual General Meeting/Congress held from Thursday, July 19 to Saturday, July 21, 2018 at the Park Inn by Radisson in Abeokuta, Ogun State. Before now, he was the Vice President of AAAN. Also at the election held on Saturday, former Publicity Secretary of the association, Mr Steve Babaeko, defeated his opponent, Mr Yomi Johnson, the former Culture Communications Director of AAAN, to clinch the position of

Image
10-January-2020

Buhari to Declare 2020 NIPS Summit Open

By Adedapo Adesanya During his outlook for the energy sector last month, the Minister of State for Petroleum Resources, Mr Timipre Sylva, declared that 2020 would be the year of Gas for Nigeria. To kickstart this, the country is set to host the third annual Nigeria International Petroleum Summit (NIPS) from February 9 – 12, 2020 in Abuja. The NIPS conference will be themed: Widening the Integration Circle: Technology, Knowledge, Sustainability and Partnership and will present strategies and opportunities for growth in oil, gas and energy technologies as well as showcase major contract signings. The summit will provide the opportunity

Image
21-September-2018

CBN Mops up N338b as One-Year T-Bills Clear at 13.50%

By Dipo Olowookere The Central Bank of Nigeria (CBN) mopped up N337.6 billion from the system on Thursday through the sale of treasury bills via Open Market Operations (OMO). During the exercise, the apex bank offered to investors the same bills it auctioned at the primary market auction (PMA) on Wednesday; 91-day, 182-day and the 364-day bills. However, despite receiving offers worth N24 million for the N100 billion worth of the 91-day instrument auctioned, the apex bank issued a No Sale result. But for the 182-day bill, the bank sold N31.05 billion after receiving subscriptions worth N38.05 billion of the

Image
10-November-2021

FTN Cocoa Offers Rights Issue to Shareholders

By Dipo Olowookere One of the companies listed on the trading platform of the Nigerian Exchange (NGX) Limited, FTN Cocoa Processors Plc, is offering an opportunity to its shareholders to increase their number of stocks in the organisation. FTN Cocoa is proposing to make this possible through a rights issue, a system where existing shareholders of a firm acquire more stocks of the company for a discount price. Already, the company’s brokerage firm, Meristem Stockbrokers Limited, has submitted an application to the exchange for approval and listing of the shares to be sold through the process. According to a notice

Image
23-March-2021

Advocating for Nigerian Media Monitoring and Measurement Association (NiMMA)

By Queen Nwabueze One revolution that happened in the public relations ‘sector’ is the reality that there are now Independent PR measurement and evaluation consultancies who can prove Public Relations ROO (Return on Objective) for good. Over the years, measuring the true value of Public Relations has been the biggest challenge for a marketing communicator. Yes, indeed. Before the arrival of Independent PR measurement services, it used to be so nightmarish to calculate PR value with a 360 degrees approach. Put literally, PR measurement and evaluation is investigating to see whether you met your set objectives and overall goal just

Image
08-July-2022

Tony Iredia Kicks Against Media Industry Regulation Bill

By Adedapo Adesanya The former Director-General of Voice of Nigeria (VOA), Professor Tony Iredia, has warned the federal government against the imposition of regulations on the media industry. He gave the warning at a meeting with the House of Representatives in Abuja on Thursday for the public hearing on the bill which seeks to provide regulation and conduct of the practice of the broadcasting profession in Nigeria and other related matters. While declaring the hearing open, the Speaker of the lower chamber, Mr Femi Gbajabiamila, maintained that the bill was expected to change the broadcast and information landscape in the

Image
19-January-2021

ByteDance Unveils e-Payment Service

By Adedapo Adesanya TikTok owner, ByteDance, has rolled out an electronic payment service connected to Douyin, the Chinese version of the popular short video app. Users of Douyin, ByteDance’s Chinese version of TikTok, discovered that they have been offered an additional payment option for in-app purchases called Douyin Pay, alongside the existing Alipay and WeChat Pay. “The setup of Douyin Pay (Douyin Zhifu) is to supplement the existing major payment options, and to ultimately enhance user experience on Douyin,” the Beijing-based company said in a statement on Tuesday. Alipay and WeChat are offered by Ant Group, an affiliate of Alibaba

Ad
Ad
Recent Stories
Image
05-March-2024

What Pentecostal Pastors Have in Common With Politicians

By Michael Owhoko, PhD The disparity of roles between ecclesiastics and politicians is generally expected to translate to differences in values, lifestyles and creeds, but this pattern has been disrupted and bridged in Nigeria by materialism.  Moral disconnects, lust and insatiability for money, wealth, fame, influence and power have conspired to bring the men of God to the level of politicians.  This is evident in the Pentecostal ministries where some founding pastors and general overseers {GOs} no longer exhibit ascetic dispositions and restraints from material allures. Men of God are ordained servants positioned to constantly communicate God’s values and the

Image
05-March-2024

Ghana’s Central Bank Suspends FX Trading Licence of First Bank

By Aduragbemi Omiyale The foreign exchange (FX) trading licence of FBN Bank Ghana Limited, a subsidiary of FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, has been suspended by the Bank of Ghana. A statement issued on Monday by Ghana’s central bank disclosed that its action was because of the bank’s fraudulent documentation in its forex operations. The country’s banking sector regulator also suspended the FX trading licence of GTBank Ghana Limited, a subsidiary of Nigeria’s GTCO Plc, the parent company of GTBank Limited for the same offence. The notice from the central bank disclosed that

Image
05-March-2024

Binance Exits Nigeria, to Convert Naira Balances to UDST

By Adedapo Adesanya Binance will discontinue all services for Nigeria’s fiat currency, the Naira, following the ongoing regulatory onslaught on the firm by the Nigerian authorities. The crypto exchange will automatically convert Naira balances to US Dollar Tether (USDT) from March 8 but will cease support for deposits after today. Withdrawals will become unsupported after March 8 by 12 noon Nigerian time, a statement sighted by Business Post confirmed. The conversion rate for automatic conversions will be pegged at N1,515.13 to 1 USDT, according to an announcement from the website. Other features, including Binance Convert, Binance P2P, the exchange’s Auto

Image
05-March-2024

Petrol, Electricity Subsidies Will Gulp 3% of Nigeria’s GDP—IMF

By Adedapo Adesanya The International Monetary Fund (IMF) has warned the Nigerian government the payment of subsidies on petrol and electricity could take up to 3 per cent of the country’s gross domestic product (GDP) in 2024. The IMF stated this in a statement released on Monday on the completion of its 2024 Article IV Mission to Nigeria. The lender said that the recent improvements in revenue collection and oil production are encouraging, as “low revenue mobilization constrains the government’s ability to respond to shocks and to promote long-term development.” But it emphasised that, “The capping of fuel pump prices

Image
05-March-2024

Deel Buys 100% Stake in African HR Solution Company PaySpace

By Adedapo Adesanya Global human resources company, Deel, has announced the acquisition of African-based payroll and HR solution company, PaySpace, for an undisclosed amount, in one of its largest acquisitions to date. By acquiring PaySpace, Deel will become the first global payroll and Employer of Record (EOR) with its full-stack payroll engine localized in 50 countries and integrated into its offering. PaySpace’s proprietary technology is a cloud-native framework built as a single engine. Its platform allows for easy configuration to add additional countries through localization. These localization projects normally take years to complete, but with PaySpace’s innovative technology, it can

Image
05-March-2024

Emotions Pour as Dignitaries Eulogise Late Herbert Wigwe

By Adedapo Adesanya  It was an emotional rollercoaster at the tribute event held on Monday night to celebrate the late group chief executive of Access Holdings Plc, Mr Herbert Wigwe. Dignitaries from government, corporate organisations, and royalty paid tribute to the late titan who died alongside his wife, son, and a former group chairman of the Nigerian Exchange (NGX) Group Plc, Mr Abimbola Ogunbajo, on February 9 in the United States. The event which was monitored by Business Post was divided into six segments – Young Hebert, the banker, the entrepreneur, the CEO, the builder and the ambassador. These personalities

Image
05-March-2024

Nigeria’s Economic Outlook is Challenging—IMF Declares

By Aduragbemi Omiyale The International Monetary Fund (IMF) has alerted that tough times await Nigerians, though it retained its gross domestic product (GDP) growth forecast for 2024 at 3.2 per cent. In a statement on the conclusion of the IMF Staff 2024 Article IV Mission to Nigeria, the global lender said the administration of President Bola Tinubu “inherited a difficult economic situation marked by low growth, low revenue collection, accelerating inflation, and external imbalances built up over years.” However, it praised the government’s approval of an effective and well-targeted social protection system, including the release of grains, seeds, and fertilizers,

Image
05-March-2024

Banks Involved in 70% of Economic Crimes in Nigeria—EFCC

By Aduragbemi Omiyale Nearly 70 per cent of financial crimes in Nigeria have the involvement of banks, the Economic and Financial Crimes Commission (EFCC) has claimed. “Broadly speaking, banking fraud in Nigeria is both inside and outside related. “The inside related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery and several other kinds of unhealthy and criminal practices,” the chairman of EFCC, Mr Ola Olukoyede, said while speaking at the Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria held in Abuja. The EFCC boss, represented by the agency’s Director

Image
05-March-2024

Nigerian Air Force Airstrikes Hit Two Illegal Refineries in Rivers

By Adedapo Adesanya The Nigerian Air Force component of Operation Delta Safe, through airstrikes destroyed two illegal oil refining sites in Krakama and Temakiri, Degema Local Government Area of Rivers State, in continuation of efforts to stamp out the activities of crude oil thieves and oil pipeline vandals in the country. This was disclosed by the Director of Public Relations and Information, Nigerian Air Force, Mr Edward Gabkwet, an Air Vice Marshal, saying the illegal oil refining sites were observed actively operating with Cotonou boats sighted nearby with the probable intent to illegally siphon crude oil from the sites. Mr

Image
05-March-2024

NGX Remains Catalyst for Economic Growth—Chiemeka

By Aduragbemi Omiyale The acting chief executive of the Nigerian Exchange (NGX) Limited, Mr Jude Chiemeka, has described the bourse as a catalyst for economic growth and development. He said this at the listing of 7.5 billion ordinary shares of Transcorp Power Plc at N240 per unit at the exchange on Monday. The energy firm raised the market capitalisation of the trading platform by N1.8 trillion yesterday. According to him, the inclusion of Transcorp Power into the NGX, the first listing of the year, underscored the pivotal role the bourse plays in shaping Nigeria’s economic landscape. He added that NGX