Economy
Crude Oil Market Jumps on Weak Dollar, Chinese Data
By Adedapo Adesanya
The crude oil market gained about 3 per cent to a one-week high on Thursday on a weaker US dollar, and a jump in refinery runs in top crude importer, China.
Data indicated that Brent rose by $2.47 or 3.4 per cent yesterday to settle at $75.67 a barrel, while the US West Texas Intermediate (WTI) increased by $2.35 or 3.4 per cent to $70.62 per barrel.
The oil market drew support from US reports showing retail sales unexpectedly rose in May, and higher-than-expected jobless claims last week cut the US Dollar to a five-week low versus a basket of other currencies.
A weaker Dollar makes crude cheaper for holders of other currencies, which could boost oil demand.
Data on Thursday also showed China’s oil refinery throughput rose 15.4 per cent in May from a year earlier, hitting its second-highest total on record.
Analysts noted that there are expectations that Chinese oil demand will keep climbing for the remainder of the year.
Despite these projections, the Chinese economy is not recovering as smoothly as initially expected. Retail sales rose by 12.7 per cent year on year in May but slowed by 5.7 percentage points from April, the National Bureau of Statistics of China said on Thursday.
Also, industrial output increased by 3.5 per cent annually in May, slower than the 5.6 per cent growth in April. In addition, unemployment among people aged 16 to 24 hit an all-time high of 20.8 per cent, the Chinese data showed.
However, the International Energy Agency (IEA) continues to be increasingly optimistic about China, saying in its latest monthly report published on Wednesday that “China’s rebound continues unabated, with its oil demand reaching an all-time high of 16.3 million barrels per d in April.”
The IEA raised its global oil demand forecast for this year, expecting demand growth of 2.4 million barrels per day in 2023 to 102.3 million barrels per day, a new record. This latest global oil demand growth estimate is higher than last month’s projection of 2.2 million barrels per day demand growth to 102 million barrels per day.
On the supply side, analysts expect voluntary crude output cuts implemented in May by the Organisation of the Petroleum Exporting Countries (OPEC) and allies (OPEC+) and Saudi Arabia in July to support prices at a time of strong demand.
The European Central Bank (ECB) raised interest rates to a 22-year high as expected on Thursday. It signalled further policy tightening as it battles high inflation.
On Wednesday, the US Federal Reserve kept interest rates unchanged but signalled at least a half of a percentage point increase by the end of the year. These higher interest rates would ultimately increase borrowing costs for consumers, which could slow economic growth and reduce oil demand.
By Aduragbemi Omiyale
Nigeria slightly surpassed its quota set by the Organisation of the Petroleum Exporting Countries (OPEC) in July 2026.
In the month under review, the country produced about 1.57 million barrels of crude oil per day.
It was the third consecutive month Africa’s largest oil-producing nation was meeting its monthly quota, set to stabilise the price of the commodity on the global market by the oil cartel.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday showed that the 1.5 million barrels per day ceiling for Nigeria was surpassed last month.
The agency disclosed in a statement today that the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate, bringing the combined daily production to 1.67mbpd.
In the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.
Although Nigeria met its OPEC quota in the month of July, the statistics show that on a month-on-month basis, production fell by 4 per cent.
This was attributed to the decline in production due to operational challenges experienced at the Erha and Akpo fields, which impacted crude oil output during the period under review.
These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures aimed at maintaining production efficiency and minimising the impact of operational constraints, NUPRC stated.
By Aduragbemi Omiyale
The over 9 billion shares of Lasaco Assurance Plc issued to shareholders of the company via a rights issue have been listed on the Nigerian Exchange (NGX) Limited.
The equities were brought to Customs Street on Wednesday by the organisation, increasing its total issued and fully paid-up share capital.
Lasaco Assurance, which scaled the recapitalisation hurdle of the National Insurance Commission (NAICOM) in July 2026, raised fresh capital from the capital market to shore up its capital base.
The underwriting firm got about N18.5 billion from the rights issue, which involved the issuance of 9,236,321,546 ordinary shares at a unit price of N2.00.
The exercise was on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
Confirming the listing of the additional stocks of Lasaco Assurance today, the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, announced in a circular that, “Trading licence holders are hereby notified that an additional 9,236,321,546 ordinary shares of 50 Kobo each of Lasaco Assurance Plc were today, Wednesday, August 12, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 9,236,321,546 ordinary shares of 50 Kobo each at N2.00 per share on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
“With the listing of the additional 9,236,321,546 ordinary shares, the total issued and fully paid-up share capital of Lasaco Assurance Plc has now increased from 11,083,585,855 to 20,319,907,401 ordinary shares of 50 Kobo each.”
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has said the successful recapitalisation of the insurance industry will strengthen the sector’s ability to support financial stability and economic growth.
NIA Chairman, Mrs Ebelechukwu Nwachukwu, said a well-capitalised insurance industry would be better positioned to meet its obligations promptly, underwrite complex and large-scale risks and serve as a dependable pillar of the Nigerian economy.
She made the remarks while commending the National Insurance Commission (NAICOM) for its structured implementation of the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mrs Nwachukwu said NAICOM’s clear guidelines, systematic verification process, defined timelines and rigorous supervision had provided operators with a credible framework for navigating the recapitalisation exercise.
She described the outcome as a major milestone for the industry and congratulated the 43 insurance and reinsurance companies that have successfully met the prescribed minimum capital requirements.
According to her, the exercise represents “a major win not just for regulators and operators, but for policyholders, investors and the wider Nigerian economy.”
Mrs Nwachukwu said the association would continue to work with NAICOM and other stakeholders to consolidate the gains of the exercise, with emphasis on sustainable industry growth, stronger market conduct and improved consumer confidence.
The official also expressed solidarity with the eight companies still undergoing final verification and regulatory review, urging them to remain confident as NAICOM completes the process within the 14-day review period.
The NIA chairman assured policyholders and the wider business community that the insurance industry would emerge from the recapitalisation exercise stronger, more resilient and better positioned to contribute to Nigeria’s economic development.
