Connect with us

Economy

Crude Oil Rises as Hurricane Halts US Production

Published

on

crude oil market

By Adedapo Adesanya

Prices of crude oil rose on Monday as a huge chunk of production in the United States section of the Gulf of Mexico has been shut as hurricane Ida passed through it before making landfall in the state of Louisiana.

According to data from the Bureau of Safety and Environmental Enforcement (BSEE), a total of 288 production platforms in the Gulf of Mexico have been evacuated.

This meant that about 1.74 million barrels in daily production or 95.7 per cent of the total produced in the Gulf was shut in, along with 2.09 billion cubic feet of natural gas production daily, or 93.8 per cent of the total, the BSEE reported.

Refiners along the Gulf Coast also shut down their facilities including facilities managed by oil majors including Shell, Exxon Mobil, Marathon, and Valero.

The shut-in refining capacity totalled 2.11 million barrels per day or about 12 per cent of the national total. The figure also includes refineries operating at reduced rates because of the hurricane.

Ida is the ninth named storm in the hurricane season in the Atlantic this year and has seen staff evacuated from the platform as a critical safety measure.

With the storm moving inland, it has now weakened into a Category 1 hurricane and has since dropped to tropical storm status shifting the market’s attention to when refiners can restart and produce fuels.

As a result of the development, the price of Brent crude rose by 0.72 per cent or 52 cents to sell at $73.27 per barrel while the West Texas Intermediate (WTI) moved up by 39 cents or 0.57 per cent to trade at $69.13 per barrel.

Crude prices also got support yesterday and could rise further if the Organisation of the Petroleum Exporting Countries and allies (OPEC+) stops adding barrels to global supply.

This is a possibility as the Kuwaiti oil minister, Mr Mohammad Abdulatif al-Fares, said the 23-man alliance can take the step as the markets are slowing due to the Delta variant of the coronavirus.

“Since COVID-19 has begun its fourth wave in some areas, we must be careful and reconsider this increase. There may be a halt to the 400,000 barrels per day increase,” he said.

OPEC+ had agreed to boost oil production by 400,000 barrels per day every month beginning August until the group’s combined output reached pre-agreement levels towards the end of next year.

However, now that demand concerns are once again coming to the fore, OPEC+ is signalling that it is always ready to change and this will be discussed at the meeting scheduled for September 1.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

1 Comment

1 Comment

  1. Pingback: Crude Oil Rises Due to Hurricane Stopping U.S. Production - Financial News

Leave a Reply

Economy

Investors Gain N1.09bn as NASD Share Price Rises 9.1%

Published

on

NASD Exchange

By Adedapo Adesanya

The unlisted securities market closed the last trading session of the week on a positive note after it appreciated by 0.18 per cent on the back of growth in the share price of NASD Plc.

Business Post reports that the NASD Over-the-Counter (OTC) Securities Exchange returned to the bulls’ territory on Friday after it closed flat on Thursday.

NASD Plc was the major driver of the return of the bourse to the green region as its value went up during the session by N2.45 or 9.1 per cent to close at N26.99 per unit in contrast to N24.54 per unit it closed at the previous session.

As a result of this, the NASD unlisted security index (NSI) moved up by 1.32 points to 745.44 points from 744.12 points, while the market capitalisation gained N1.09 billion to wrap the day at N615.86 billion in contrast to the previous day’s N614.77 billion.

On the activity chart, there was an improvement as the trading volume surged by 34,985.6 per cent because of the 2.3 million units of shares exchanged by market participants compared with the 6,688 units transacted at the previous session.

In the same vein, the trading value rose by 17,680.6 per cent to N63.4 million from the previous day’s N356,563.60, while the number of deals witnessed a 100 per cent rise as investors carried out 12 deals compared to the six deals executed at the previous session.

At the close of trades, Food Concepts Plc was the most traded stock by volume (year-to-date) with 11.4 billion units of its shares worth N14.4 billion, Lighthouse Financial Service Plc followed with 1.1 billion units valued at N546.2 million, while Geo Fluids Plc was in third place with 1.0 billion units worth N700.1 million.

Food Concepts Plc was also the most traded stock by value on a year-to-date basis with 11.4 billion units worth N14.4 billion, trailed by Nigerian Exchange (NGX) Group Plc with 456.4 million units valued at N9.2 billion, VFD Group Plc with 10.4 million units valued at N3.5 billion.

Continue Reading

Economy

Naira Trades N414.73/$1 as Cryptos Bleed Heavily

Published

on

Cryptos

By Adedapo Adesanya

The Naira appreciated against the US Dollar at the Investors and Exporters (I&E) window of the foreign exchange (forex) market by 0.02 per cent or 7 kobo on Friday, December 4.

Data showed that the local currency was sold for N414.73/$1 at the investors’ window yesterday compared with the N414.80/$1 it traded on Thursday.

At the final trading session of the week, the turnover was $103.01 million as against $139.67 million achieved at the preceding session, indicating a $36.66 million or 26.62 per cent decline.

Also, the exchange rate of the Naira to the United States currency recorded a movement on Friday, though downward as the Nigerian currency depreciated by 4 kobo as it closed at N411.74/$1 versus the preceding day’s N411.70/$1.

The local currency, however, appreciated by N2.17 against the British Pound Sterling to settle at N546.26/£1 compared to N548.43/£1 it traded at the previous trading session and 57 kobo against the Euro to trade at N465.68/€1 compared to the preceding day’s N466.25/€1.

At the cryptocurrency market, investors counted a heavy loss as the new variant of the coronavirus called Omicron and hawkish comments by the US Federal Reserve that it could raise interest rates have raised serious concerns, causing cryptos to bleed heavily.

The heaviest loss was suffered by Dash (DASH), which plunged by 35.3 per cent to sell for N66,595.85. Ripple (XRP) depreciated 30.6 per cent to trade at N381.85, while Litecoin (LTC) sold for N66,595.85 after declining by 24.1 per cent.

Dogecoin (DOGE) went down by 22.7 per cent to sell at N90.29, Cardano (ADA) depreciated by 20.8 per cent to N652.82, Bitcoin (BTC) depleted by 16.9 per cent to quote at N26,800,504.20, Ethereum (ETH) equally saw a 16.9 per cent depreciation to trade at N2,100,100.39, Binance Coin (BNB) recorded a 12.9 per cent depreciation to trade at N218,577.24, Tron (TRX) went down by 12.7 per cent to trade at N48.00, while the US Dollar Tether (USDT) recorded a 0.1 per cent marginal loss to sell for N554.76.

Continue Reading

Economy

Crude Mixed as Market Remains Unsettled by Omicron Jitters

Published

on

Crude Oil Prices

By Adedapo Adesanya

Crude prices closed mixed on Friday, December 3 after erasing earlier big gains on growing worries that rising coronavirus cases and a new variant could reduce global oil demand.

Brent crude gained 21 cents or 0.3 per cent to trade at $69.88 per barrel while on the other hand, the United States West Texas Intermediate (WTI) crude lost 24 cents or 0.36 per cent to sell at $66.26 per barrel.

Both benchmarks declined for a sixth week in a row for the first time since November 2018.

Oil prices had witnessed one of the most troubled weeks as the market reeled from the fear brought about by the Omicron variant of the coronavirus with speculations that it could spark new lockdowns and dent fuel demand.

The World Health Organization (WHO) urged countries to vaccinate their people to fight the virus, saying travel curbs were not the answer.

Even with this, the Organisation of the Petroleum Exporting Countries and allies (OPEC+) surprised the market on Thursday when it stuck to its plans to add 400,000 barrels per day supply in January.

However, it said it will continue to monitor the market and this could make it change course if demand suffered from measures to contain the spread of the Omicron coronavirus variant.

The alliance said they could meet again before their next scheduled meeting on January 4.

Analysts noted that with the coronavirus cases rising, the US jobs report for November also didn’t help demand outlook even as the unemployment rate plunged to a 21-month low of 4.2 per cent, suggesting the country’s labour market was rapidly tightening.

US employment growth slowed considerably in November amid job losses at retailers and in local government education.

Meanwhile, in Vienna, diplomats attempting to restore the nuclear deal between Iran and world powers face substantial challenges that need urgent solutions, the top European envoy said Friday. Talks are set to resume next week.

Continue Reading

Like Our Facebook Page

Latest News on Business Post

Trending

%d bloggers like this: