Economy
Crude Oil Rises as Market Weighs Possible Trump Energy Policies
By Adedapo Adesanya
Crude oil went up nearly one per cent on Thursday as the market considered how US President-elect Donald Trump’s policies would affect supplies.
Yesterday, Brent futures gained 71 cents or 0.95 per cent to trade at $75.63 per barrel and the US West Texas Intermediate (WTI) crude increased by 67 cents or 0.93 per cent to close at $72.36 a barrel.
Prices gained support from expectations that Trump’s incoming administration may tighten sanctions on Iran and Venezuela.
On Wednesday, the election of the Republican candidate, Mr Trump, initially triggered a sell-off that pushed oil down more than $2 as the US Dollar rallied. He will take office in the next 78 days.
A strong Dollar makes oil expensive and this typically leads to a drop in prices.
In his first term, Mr Trump put in place harsher sanctions on Iranian and Venezuelan oil, limiting supply and supporting oil prices.
However, his successor, Mr Joe Biden briefly rolled back the sanctions but he would later reinstate them.
Such a move would raise the cost of China’s imports, piling pressure on a refining sector grappling with weak fuel demand and tight margins.
However, China and Iran have built a trading system that uses mostly Chinese Yuan and a network of middlemen, avoiding the Dollar and exposure to US regulators, making sanctions enforcement tough.
However, analysts say that the US government has been reluctant to take steps that would remove supply from the global market as a result of the Russia-Ukraine war.
Also supporting prices, the US Federal Reserve cut interest rates by a quarter of a percentage point at the close of its policy meeting on Thursday.
The US Federal Reserve said it will continue assessing data to determine the pace and destination of interest rates as officials reset tight monetary policy to account for inflation that has slowed markedly in the past year and is nearing the US central bank’s 2 per cent target.
Interest rate cuts typically boost economic activity and energy demand.
Support also came as some companies cut supply in the US due to Hurricane Rafael. According to the US Bureau of Safety and Environmental Enforcement (BSEE), over 22 per cent equivalent to 391,214 barrels per day, of crude oil production was shut in response to the hurricane.
By Adedapo Adesanya
The World Bank has approved $1.25 billion in development financing to help Nigeria spur economic growth and create jobs.
Unveiled under its Nigeria Actions for Investment and Jobs Acceleration programme, the approval was announced on Wednesday alongside the launch of a new Country Partnership Framework for Nigeria, spanning 2026 to 2032.
The global lender, in a statement, noted that the newly endorsed strategy aims to guide its support over the next six years, primarily focusing on creating higher-quality jobs.
The Bretton Woods-based bank said the $1.25 billion Development Policy Financing operation is expected to back reforms aimed at improving Nigeria’s business environment and strengthening long-term economic growth.
According to the statement, the planned reforms include expanding capital markets, updating regulations for the digital economy and e-governance, accelerating electricity sector reforms, reducing trade barriers in line with Nigeria’s commitments under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), improving access to quality agricultural seeds and increasing domestic revenue generation.
The loan comes amid increased criticism over the rate of borrowing under the Bola Tinubu-led administration, which has seen the country’s debt profile now almost at N160 trillion, as per the latest data from the Debt Management Office (DMO).
The Bank stressed that the new framework is built on Nigeria’s recent macroeconomic reforms, which it noted have successfully driven economic growth, bolstered external reserves, and improved investor confidence.
“The World Bank Group has endorsed a new Country Partnership Framework for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth,” the bank stated in the statement.
World Bank Country Director for Nigeria, Mr Mathew Verghis, while highlighting the need to convert financial benchmarks into human development, emphasised the core mission of the project.
“Our new Country Partnership Framework provides the strategy for how the World Bank Group will support Nigeria over the coming years, with a strong focus on helping to create more and better jobs, particularly by enabling private sector-led growth.
“The recent macroeconomic gains have been critical to help stabilise the economy. Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation,” Mr Verghis said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange improved by 0.89 per cent on Tuesday, June 30, spurring the market capitalisation to chalk up N22.72 billion to close at N2.580 trillion, in contrast to the preceding session’s N2.557 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) added 37.85 points during the session to settle at 4,2991.41 points from Monday’s 4,261.56 points.
The unlisted securities market gained weight yesterday after finishing with three price losers and gainers, led by Nipco Plc, which improved its share price by N34.24 to N384.00 per unit from N349.76 per unit. FrieslandCampina Wamco Nigeria Plc appreciated by N10.25 to close at N152.01 per share versus N141.76 per share, and Food Concepts Plc soared by 7 Kobo to settle at N2.50 per unit versus N2.43 per unit.
On the flip side, Afriland Properties Plc weakened by N1.57 to N15.17 per share from N16.74 per share, Central Securities Clearing System (CSCS) Plc lost 48 Kobo to trade at N88.00 per unit compared with Monday’s N88.48 per unit, and Geo-Fluids Plc eased by 24 Kobo to N2.37 per share from N2.61 per share.
During the session, the volume of securities traded by market participants moved up by 268.9 per cent to 846,063 units from 229,314 units, while the value of securities dropped 34.9 per cent to N15.99 million from N24.6 million, and the number of deals crashed by 26.5 per cent to 25 deals from 34 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, the second spot was occupied by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and the third spot was taken by CSCS Plc with 68.8 million units traded for N4.7 billion.
GNI Plc also ended the day as the most active stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
By Adedapo Adesanya
The Naira appreciated against the US Dollar by N3.95 0r 0.29 per cent to exchange at N1,379.68/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, June 30, compared with the previous day’s N1,383.63/$1.
The positive movement was also seen against the Pound Sterling at the same official market window, where it gained N6.59 to trade at N1,825.05/£1 versus the preceding day’s N1,831.64/£1, and improved against the Euro by N5.05 to sell for N1,572.98/€1 compared with Monday’s price of N1,578.03/€1.
At the GTBank FX counter, the Nigerian Naira, however, lost N2 against the Dollar yesterday to quote at N1,389/$1, in contrast to the previous session’s N1,387/$1, and at the black market, it remained unchanged at N1,395/$1,
A look at the cryptocurrency market yesterday showed that Bitcoin (BTC) depleted for the fifth straight day, selling at $58,668.93. This sits below the levels that sparked rebounds in February and earlier in June, as well as the 50-day and 200-day moving averages.
Dogecoin (DOGE) crashed by 1.5 per cent to sell at $0.0713, Binance Coin (BNB) lost 1.4 per cent to close at $544.98, Ethereum (ETH) went down by 1.0 per cent to $1,574.60, TRON (TRX) depreciated by 0.8 per cent to $0.3164, and Ripple (XRP) dropped 0.8 per cent to finish at $1.03.
Conversely, Cardano (ADA) grew by 2.9 per cent to $0.1493, and Solana (SOL) increased by 0.3 per cent to $74.19, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
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