Economy
Crude Oil Market Rises 1%
By Adedapo Adesanya
The crude oil market appreciated by more than 1 per cent on Tuesday on the prospect of slightly tightening supplies as trade thinned ahead of the holidays.
Brent crude futures traded at $73.58 per barrel after it gained 95 cents or 1.3 per cent while the US West Texas Intermediate (WTI) crude futures settled at $70.10 per barrel after it chalked up 86 cents or 1.2 per cent.
Market activities were muted due to the holiday season, and market participants stayed on the sidelines until they had a clearer view of 2024 and 2025 global oil balances.
Analysts also expect the benchmark prices to fluctuate around current levels in the near term with greater oil demand over the next few months.
The Energy Information Administration’s (EIA) short-term energy outlook (STEO) recently shifted their 2025 liquids to a draw, despite moves by the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ to add barrels next year after delays this year.
Also supportive of prices was a plan by China, the world’s biggest oil importer, to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, as it ramps up fiscal stimulus to revive a faltering economy.
The proceeds will be targeted at boosting consumption via subsidy programmes, equipment upgrades by businesses and funding investments in innovation-driven advanced sectors, among other initiatives/
Data from the American Petroleum Institute (API) showed that crude oil and distillate stocks in the US fell last week by 3.2 million barrels and 2.5 million barrels, respectively].
Meanwhile, gasoline (petrol) stocks were seen rising last week just as gasoline inventories were seen rising by 3.9 million barrels.
The figures come ahead of data from the EIA, the statistical arm of the US Department of Energy, due later on Friday.
Markets will also be watching the US economy, the world’s largest oil consumer, which released a mixed bag of data.
Recently, consumer confidence weakened in December, new orders for key US-manufactured capital goods surged in November amid strong demand for machinery and new home sales rebounded.
This suggested that the US economy was on a solid footing as the year closed.
Markets will be closed on Wednesday, December 25 and there will be no global oil market report for the day.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange appreciated by 0.19 per cent on Wednesday, January 29 after the share prices of stocks closed higher.
Okitipupa Plc gained N5.79 at midweek to close at N63.75 per unit compared with Tuesday’s value of N57.96 per unit, UBN Property Plc expanded by 18 Kono to trade at N2.02 per share versus the preceding day’s N1.84 per share, and Industrial and General Insurance (IGI) Plc jumped by 2 Kobo to finish at 42 Kobo per unit, in contrast to 40 Kobo per unit.
At the close of business, the value of the bourse increased by N3.33 billion to N1.769 trillion from N1.766 trillion and the NASD Unlisted Security Index (NSI) went up by 20.05 points to 3,123.70 points from the 3,117.82 points quoted at the recent session.
During the trading day, Acorn Petroleum lost 14 Kobo to end at N1.40 per share versus N1.54 per share and FrieslandCampina Wamco Nigeria Plc depreciated by 29 Kobo to N39.68 per unit from N38.97 per unit.
The volume of securities bought and sold on Wednesday increased by 3,193.8 per cent to 14.9 million units from the 460,564 units posted a day earlier, the value of shares traded by investors also went up by 78.6 per cent to N30.1 million from N16.9 million, and the number of deals grew by 33.8 per cent to 28 deals from the 21 deals recorded in the preceding trading session.
The most active stock by volume on a year-to-date basis remained Impresit Bakolori Plc with 406.5 million units worth N386.1 million, followed by Industrial and General Insurance (IGI) Plc with 26.3 million units sold for N6.3 million, and Geo-Fluids Plc with 9.2 million units valued at N44.3 million.
Also, Impresit Bakolori Plc was the most active stock by value on a year-to-date basis with 406.5 million units worth N386.1 million, followed by FrieslandCampina Wamco Nigeria Plc with 4.3 million units valued at N170.4 million, and Geo-Fluids Plc with 9.1 million units sold for N44.3 million.
By Adedapo Adesanya
The value of the Naira continued to firm against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) as it strengthened by N11.96 or 0.79 per cent on Wednesday to sell at N1,510.72/$1 compared with Tuesday’s closing rate of N1,522.68/1$.
The recent pressure on the market eased across majorly regulated channels with recent policy moves by the Central Bank of Nigeria (CBN) creating more trading transparency and ethical practices.
Equally, in the official market, the local currency appreciated against the Pound Sterling yesterday by N27.81 to wrap the session at N1,871.77/£1 versus the preceding day’s N1,899.58/£1 and against the Euro, the Naira improved its value by N24.46 to trade at N1,568.58/€1, in contrast to the previous session’s N1,593.04/€1.
In the same vein, the Nigerian currency gained N20 against the greenback in the black market at midweek to quote at N1,620/$1 compared with the preceding day’s rate of N1,640/$1.
A look at the cryptocurrency market indicated that most of the tokens rose as the Federal Reserve kept its benchmark fed funds rate range steady at 4.25 per cent-4.50 per cent, in line with market expectations.
The US central bank said inflation remains “somewhat elevated and this initially dropped Bitcoin and other coins but rose as Chairman Jerome Powell gave his post-meeting press conference.
Litecoin (LTC) grew by 12.3 per cent to sell at $128.55, Bitcoin (BTC) jumped by 2.6 per cent to $105,190.69, Solana (SOL) increased by 2.5 per cent to $238.74, Cardano expanded by 1.8 per cent to trade at $0.9621, Ethereum (ETH) appreciated by 1.6 per cent to $3,190.50, Ripple (XRP) grew by 0.14 per cent to $3.12, and Dogecoin (DOGE) rose by 0.11 per cent to $0.332.
However, the price of Binance Coin (BNB) depreciated yesterday by 0.1 per cent to settle at $677.80, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
The price of the Brent crude grade depreciated by 91 cents or 1.2 per cent to $76.58 per barrel on Wednesday after domestic crude stockpiles in the United States rose in the last week.
Also, price of the US West Texas Intermediate (WTI) crude grade slumped by $1.15 or 1.6 per cent to $72.62 per barrel as the US Energy Information Administration revealed that crude oil inventories in the country grew by 3.5 million barrels in the week ending January 24.
On Tuesday, the API issued its latest estimates on crude oil and crude oil products inventories, showing a rise of 2.86 million barrels for the week ending January 24.
Market analysts noted that near-term oil trade should remain bearish as investors digest the tariff threats, sanctions on Russian energy flows, and economic growth concerns in top consuming nations
The White House on Tuesday reaffirmed President Donald Trump’s plan to impose 25 per cent tariffs on imports from Canada and Mexico from February 1.
Traders are also looking ahead to the ministerial meeting of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) scheduled for February 3, with the group’s plan to increase supply from April in focus.
President Trump called on OPEC+ to lower oil prices last week but the group has yet to respond, but Reuters reported that delegates said policy changes are unlikely at the February meeting.
For analysts at Standard Chartered, OPEC has limited power to end the Russia-Ukraine war immediately through a reduction in the oil price, with OPEC ministers likely viewing this strategy as very inefficient.
OPEC+ members are currently holding back 5.86 million barrels per day of production, or about 5.7 per cent of global demand, after making a series of cuts since 2022 to support the market.
The group plans to start raising production in April, following several delays due to weak demand.
Meanwhile, the US Federal Reserve held interest rates steady on Wednesday and the Chairman if the US central bank, Mr Jerome Powell, said there would be no rush to cut them again until inflation and jobs data made it appropriate.
On the supply front, Libya’s National Oil Corporation said export activity was running normally after it held talks with protesters who had demanded a halt to loadings at one of the country’s main oil ports.
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