Economy
Crude Oil Prices Drop 4% on Resumption of Hormuz Strait Transit
By Adedapo Adesanya
Crude oil prices fell about 4 per cent on Tuesday, as two vessels passed through the Strait of Hormuz and the United States said the ceasefire with Iran remained in place despite both sides trading fire.
Brent futures fell by $4.57 or 4 per cent to $109.87 a barrel, while the US West Texas Intermediate (WTI) crude declined by $4.15 or 3.9 per cent to $102.27 per barrel.
The Pentagon on Tuesday insisted the ceasefire with Iran was holding after the countries clashed in the waterway; US President Donald Trump characterised the attacks as a “skirmish.”
He promised to start freeing up some of the 2,000 ships stranded in the Persian Gulf, saying the effort would be a humanitarian gesture for tankers from countries not involved in the US-Iran war, prompting a threat from Tehran to stay away from the Strait of Hormuz.
Defence Secretary Pete Hegseth said the country had secured a path through the waterway, saying hundreds of ships were lining up to pass through the critical waterway. Before the US and Israel attacked Iran on February 28, about 20 per cent of global oil supplies passed through the strait daily.
The US military also said two American merchant ships made it through the strait, without saying when, with the support of Navy guided-missile destroyers.
However, Iran denied any crossings had taken place, though shipping company Maersk said the Alliance Fairfax, a US-flagged ship, passed under US military escort on Monday.
Meanwhile, the United Arab Emirates (UAE) said it was under attack from Iranian missiles and drones on Tuesday. Iran denied that it attacked the UAE in recent days.
If Iran fails to halt attacks and threats to commercial shipping in the Strait of Hormuz, the UN Security Council members could support a US- and Bahrain‑backed draft resolution that could lead to sanctions against Iran, and potentially authorise force.
Led by Saudi Arabia and Russia, the core seven members of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed on a 188,000 barrels per day production increase for June 2026, slightly lower than the 206,000 barrels per day hikes announced for April and May, reflecting the May 1 departure of the UAE from both OPEC and OPEC+.
The American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 8.1 million barrels in the week ending May 1. In the week prior, US crude oil inventories fell by 1.79 million barrels. US crude inventories are up 37 million barrels so far this year.
Official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
By Adedapo Adesanya
Nigeria will receive about 154.2 million litres of imported Premium Motor Spirit (PMS) this week despite increased domestic refining capacity driven by the Dangote Petroleum Refinery.
The latest Nigerian Ports Authority (NPA) shipping schedule shows that five petrol-laden vessels carrying a combined 115,000 metric tonnes of PMS are expected to berth at Tin Can Island Port in Lagos and Calabar Port between Monday and Wednesday.
The continued inflow of imported petrol highlights how marketers are balancing local supplies with overseas purchases based on pricing, availability and commercial considerations, even as domestic refining capacity expands.
According to the NPA’s Daily Shipping Schedule – Vessels Expected, four vessels will discharge their cargoes at the KLT Phase 3A terminal in Tin Can Island, while one vessel is scheduled to berth at the North West Petroleum & Gas terminal in Calabar.
The vessel LESTE is expected to arrive on Monday with 30,000 metric tonnes of PMS, equivalent to about 40.23 million litres, while BORA will deliver 10,000 metric tonnes, or approximately 13.41 million litres, to the same terminal.
On Tuesday, ST ILHAAM is scheduled to discharge another 30,000 metric tonnes (about 40.23 million litres), followed by STELLAR, which is expected on Wednesday with an additional 30,000 metric tonnes, also translating to roughly 40.23 million litres.
At Calabar Port, SL AREMU is expected to berth on Tuesday with 15,000 metric tonnes of PMS, equivalent to approximately 20.12 million litres, at the North West Petroleum & Gas terminal.
The shipping schedule also lists STELLAR at the Dangote terminal in Lekki Deep Sea Port with an arrival date of July 24.
However, its cargo status is marked “INB”, indicating the vessel is in ballast and not carrying cargo, suggesting it may be positioning to load refined products rather than discharge them.
The latest imports come as Nigeria continues to operate a liberalised downstream petroleum market that allows marketers to source products from either domestic refineries or international suppliers.
Industry operators have consistently argued that imports remain necessary to guarantee supply, encourage competition and take advantage of favourable pricing opportunities.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also maintained that the market remains open to all qualified operators, with fuel prices expected to reflect prevailing market conditions.
Although local refining output has risen significantly following the ramp-up of the 700,000 barrels per day Dangote refinery and ongoing rehabilitation of government-owned refineries, imported petrol continues to account for a portion of Nigeria’s fuel supply, reflecting the competitive dynamics of the deregulated market.
By Adedapo Adesanya
The duo of FrieslandCampina Wamco Nigeria Plc and Afriland Properties Plc lifted the NASD Over-the-Counter (OTC) Securities Exchange by 1.11 per cent on Monday, July 27.
FrieslandCampina Wamco Nigeria, the milk producer famed for Peak Milk and Three Crowns, added N13.61 to its share price to sell for N149.80 per unit compared with the previous session’s N136.19 per unit, and Afriland Properties Plc grew by N1.60 to N19.01 per share from N17.41 per share.
The two securities offset the 30 Kobo loss posted by Nitrox Industrial Gases Plc. This stock closed at N20.00 per unit compared with last Friday’s closing value of N20.30 per unit.
As a result, the market capitalisation of the trading platform went up by N28.72 billion to N2.606 trillion from N2.577 trillion, and the NASD Security Index (NSI) increased by 47.85 points to 4,342.60 points from 4,294.75 points.
The first trading session of the week witnessed a drop in activity level, as the volume of securities crashed by 79.8 per cent to 604,565 units from 2.99 million units, the value of securities declined by 71.7 per cent to N19.6 million from the preceding session’s N69.4 million, and the number of deals dipped by 40 per cent to 33 deals from 55 deals.
At the close of trades, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with a turnover of 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing Systems (CSCS) Plc with 75.6 million units exchanged for N5.4 billion.
GNI Plc was also the traded stock by volume on a year-to-date basis, with the sale of 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
By Adedapo Adesanya
The Naira opened the week marginally down against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) by 12 Kobo or 0.01 per cent on Monday, July 27, to trade at N1,362.21/$1, in contrast to the preceding session’s N1,362.09/$1.
This occurred amid a sharp decline in interbank FX turnover during the trading session, with deals among financial institutions also reducing strongly. The FX turnover for the day stood at $39.587 million, approximately 56 per cent lower than the $89.082 million recorded last Friday.
In the same official market, the Nigerian Naira lost 43 Kobo against the Pound Sterling yesterday to quote at N1,814.05/£1 compared with the previous session’s rate of N1,813.62/£1, and against the Euro, it slid by N1.09 to close at N1,550.19/€1 versus the preceding session’s N1,549.10/€1.
However, the local currency appreciated against the greenback by N7 at the GTBank forex desk on Monday to sell for N1,372/$1 versus N1,379/$1, and at the parallel market, it maintained stability at N1,400/$1.
The Naira has been able to remain firm despite a very strong US Dollar, largely due to market liquidity on the back of a $52 billion foreign reserves buffer, which makes it easier for banks, traders, and businesses to trade at the FX market without triggering volatility with their demands.
The Dangote Refinery also resumed selling petrol in Naira, a decision it said was driven by the need to stabilise the market, amid claims that fuel importers were withholding supplies in anticipation of higher prices. This has lifted pressure that may come due to foreign-currency buying from fuel importers.
In the cryptocurrency market, most tokens fell, as the US Senate delayed action on the closely watched CLARITY Act to focus on a Russia sanctions bill, likely pushing any vote on crypto regulatory legislation to next week before the August 8 recess.
Analysts say Bitcoin (BTC) and other coins tend to move with stocks when macro and interest-rate stress is high, and they expect volatility across asset classes around the Federal Reserve’s rate decision Wednesday and key US data on Thursday.
Cardano (ADA) dropped 6.0 per cent to finish at $0.1556, Ripple (XRP) depreciated by 4.4 per cent to $1.05, Solana (SOL) fell by 4.0 per cent to $73.27, Ethereum (ETH) slid by 3.9 per cent to $1,884.11, Dogecoin (DOGE) depleted by 3.8 per cent to $0.0699, BTC crashed by 3.0 per cent to $63,420.37, TRON (TRX) retreated by 2.3 per cent to $0.3241, and Binance Coin (BNB) slumped by 1.6 per cent to $565.57, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 apiece.
