Economy

Crude Oil Prices to Remain Low This Week

Published

6 years ago

22/10/2019

By Adedapo Adesanya

Crude Oil prices were down more than 1.5 percent in the last week with the US benchmark, West Texas Intermediate (WTI) trading just above what analyst called a “critical support zone” while Brent, the International benchmark fell a lot during the week, slicing through the $60 per barrel mark.

Over the week, the WTI moved between $52 per barrel and $54 per barrel while Brent settled mostly at the $59 per barrel. This meant that both crude prices ended a long spanning losing streak but there was no immediate bullish follow-through as this week got underway.

However, oil prices have pared their weekly losses, with both Brent and WTI rising noticeably on Thursday before adding to their gains on Friday morning despite a poor Chinese GDP report.

Oil also stabilised as the tension in Middle East eased, after the US and Turkey signed a cease-fire deal in Syria.

It was also noted that during this period, oil prices did well as a result of the optimism level caused the US-China trade situation and Brexit drove oil prices following UK Prime minister Boris Johnson and the European Union reaching a deal ahead of the October 31 vote.

So, the gains can be partially explained away by improved risk appetite as a trade deal is seen as being positive for the Chinese and global economies, and in turn demand for oil.

Meanwhile, the Energy Information Administration (EIA) report indicated that US crude oil stockpiles rose by 9.3 million barrels to 434.9 million barrels in the week ended 11 October 2019.

Looking at the supply-side of things, reports that US crude oil inventories climbed last week by the most in almost six months suggests supply remains plentiful here.

Further sharp increases in crude stocks may keep price gains in check, although ongoing intervention from the OPEC+ group means the downside will be limited as well.

OPEC and allied producers have pledged to curb supplies in December as OPEC Secretary-General Mohammad Barkindo disclosed during the week that the cartel and its allies would do all it can to sustain oil market stability beyond 2020.

The Organization of the Petroleum Exporting Countries and its allies will meet on December 5 and 6 in Vienna, Austria to review output policy.

Looking at the new week, if nothing else, tensions in the Middle East will continue to put a little bit of pressure underneath the crude oil markets as the uncertainty will still be a major issue.

Oil prices this week may hover between $58 and $59 per barrel for the Brent Crude while the West Texas Intermediate is expected to hold around $53 to $54 per barrel.

Economy

Four Stocks Drag Unlisted Securities Market Down by 0.56%

Published

49 minutes ago

13/03/2026

Adedapo Adesanya

By Adedapo Adesanya

Four stocks weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.56 per cent on Thursday, March 12, making it the third consecutive loss this week.

The price losers were led by FrieslandCampina Wamco Nigeria Plc, which crumbled by N4.71 to N128.07 per share from N132.78 per share. Central Securities Clearing System (CSCS) Plc lost N1.98 to close at N78.02 per unit versus the previous day’s N80.00 per unit, First Trust Mortgage Bank Plc declined by 15 Kobo to N1.75 per share from N1.90 per share, and MRS Oil Plc crashed by 10 Kobo to settle at N210.00 per unit compared with the preceding session’s N210.10 per unit.

Consequently, the market capitalisation went down by N14.13 billion to N2.519 trillion from N2.533 trillion, and the NASD Unlisted Security Index (NSI) dipped by 23.61 points to 4,210.30 points from 4,233.91 points.

There were three price gainers yesterday, led by Okitipupa Plc, which gained N10.00 to N240.00 per share from N230.00 per share, IPWA Plc increased by 45 Kobo to N5.01 per unit from N4.56 per unit, and Afriland Properties Plc appreciated by 35 Kobo to N17.95 per share from N17.60 per share.

During the session, the value of securities surged by 197.4 per cent to N95.0 million from N31.9 million, the volume of securities grew by 185.8 per cent to 3.7 million units from 1.3 million units, and the number of deals improved by 44.4 per cent to 52 deals from 36 deals.

The most active stock by value (year-to-date) was CSCS Plc with 38.4 million units worth N2.4 billion, followed by Okitipupa Plc with 6.4 million units valued at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc with 6.2 million units sold for N566.8 million.

The most traded stock by volume (year-to-date) was Resourcery Plc with 1.05 billion units traded for N408.7 million, trailed by Geo-Fluids Plc with 130.6 million units transacted for N503.8 million, and CSCS Plc with 38.4 million units worth N2.4 billion.

Economy

Naira Extends Recovery, Gains 0.34% Against Dollar to Sell at N1,371.51/$1

Published

1 hour ago

13/03/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira rallied against the United States Dollar by N4.68 or 0.34 per cent to trade at N1,371.51/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, March 12, compared with the N1,376.19/$1 it was traded on Wednesday.

The local currency also appreciated against the Pound Sterling in the same market window during the session by N10.67 to quote at N1,834.80/£1 versus midweek’s price of N1,845.47/£1, and strengthened against the Euro by N49.62 to finish at N1,581.89/€1, in contrast to the previous session’s N1,631.51/€1.

At the parallel market, the Naira also gained N10 against the Dollar yesterday to close at N1,410/$1 versus the preceding day’s rate of N1,420/$1, and gained N16 at the GTBank’s FX desk to settle at N1,391/$1 compared with the N1,407/$1 it was exchanged a day earlier.

Pressure further eased on the FX market as a result of inflows from foreign investors, exporters and non-bank corporates, among others.

With gross external reserves standing above $50 billion, the highest since 2009, analysts said the Naira has a positive outlook, amidst projections that the FX rate could rise to N1,300 per dollar in the first half of 2026.

However, external pressure threatens this, as increased demand for the US Dollar has strengthened globally due to the war triggered by the United States and Israel against Iran, which has been ongoing for two weeks.

A look at the digital currency market showed that prices extended a quiet stretch of consolidation that has kept the market largely unmoved by turbulence in global equities.

Amid geopolitical tensions in the Middle East and supply disruptions, crypto markets appear to be largely ignoring those pressures for now. Analysts noted that until a clear macro catalyst or wave of new capital arrives, the market appears content to consolidate gains rather than chase a breakout.

Cardano (ADA) appreciated by 6.0 per cent to $0.2743, Dogecoin (DOGE) grew by 4.9 per cent to $0.0966, Solana (SOL) added 4.6 per cent to sell for $88.99, Ethereum (ETH) rose by 4.3 per cent to $2,111.22, Ripple (XRP) jumped 3.9 per cent to $1.42, Bitcoin (BTC) expanded by 3.0 per cent to $71,546.01, Binance Coin (BNB) improved by 2.6 per cent to $661.08, and TRON (TRX) increased by 0.1 per cent to $0.2897, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.

Economy

Brent Back Above $100 as Iran Threatens to Keep Strait of Hormuz Closed

Published

1 hour ago

13/03/2026

Adedapo Adesanya

By Adedapo Adesanya

Brent crude crossed $100 a barrel again on Thursday as Iran stepped up attacks on oil and transport facilities across the Middle East, while vowing to keep the vital Strait of Hormuz shut.

The oil grade chalked up $8.48 or 9.2 per cent to trade at $100.46 a barrel, while the US West Texas Intermediate (WTI) crude settled at $95.70, up $8.48 or 9.7 per cent.

At least six vessels in the strait were damaged in incidents across the Strait of Hormuz, where about a fifth of the world’s oil and gas supplies travel.

Commercial ships sailing under the flags of Thailand, Japan, and the Marshall Islands were targeted by unknown projectiles across the Persian Gulf’s key maritime artery.

Meanwhile, Iran’s Islamic Revolutionary Guards Corps (IRGC) said it had struck a Liberian-flagged vessel in the strait that it claimed was owned by Israel.

The country has indicated it considers the ships transferring oil to the US, Israel, and “their partners” as “legitimate” targets, with its new Supreme Leader, Mojtaba Khamene,i saying on ‌Thursday that the Strait of Hormuz should remain closed as a tool of pressure.

Oman shifted all vessels out of its main oil export terminal at Mina Al Fahal outside the Strait of Hormuz in a precautionary move.

In Iraqi waters, Iranian explosive-laden boats reportedly attacked two fuel tankers, setting them ablaze and killing one crew member, while a Japan-flagged container ship sustained minor damage from an unknown projectile 46 kilometres northwest of Ras Al Khaimah in the United Arab Emirates (UAE).

The war is causing the biggest oil-supply disruption in the history of global markets, the International Energy Agency said on Thursday, a day after approving the release of a record volume of 400 million barrels of oil from strategic stockpiles.

It also said that Middle East Gulf countries have cut total oil production by at least 10 million barrels per day – a volume equaling almost 10 per cent of world demand.

The energy watchdog warned that in the wake of the war, global oil supply is set to plunge by 8 million barrels per day in March, with curtailments in the Middle East partly offset by higher output from non-OPEC+ producers, Kazakhstan, and Russia. It added that the emergency stock release wouldn’t be able to offset a prolonged supply loss.

Meanwhile, the Group of Seven (G7) nations, consisting of the United States, Canada, Japan, Italy, Britain, Germany, and France, is exploring the possibility of escorting ships through the Gulf region, including the crucial Strait of Hormuz.