Economy

Crude Oil Slides as US Output Returns Gradually

Published

4 years ago

18/09/2021

By Adedapo Adesanya

Crude oil fell on Friday as energy companies in the Gulf of Mexico restarted production after back-to-back hurricanes in the region clamped down on output in the United States.

At the market yesterday, the Brent crude futures fell by 33 cents or 0.44 per cent to settle at $75.34 per barrel, while the US West Texas Intermediate (WTI) crude futures fell by 64 cents or 0.88 per cent to settle at $71.97 a barrel.

Despite the bearish outcome, the Brent reported a weekly gain of 3.3 per cent, while the US crude benchmark was up by 3.2 per cent, supported by tight supplies due to the hurricane outages.

Friday’s slump followed five straight sessions of rises for the global crude benchmark, hitting its highest since late July just as the US crude hit its highest since early August.

Gulf Coast crude oil exports are flowing again after hurricanes Nicholas and Ida took out 26 million barrels of offshore production.

Restarts continued with less than 30 per cent of US Gulf of Mexico crude output offline, meaning a higher number have been restored.

The market was also pressured by a strengthened US Dollar, which makes the dollar-denominated asset more expensive for foreign buyers.

The dollar climbed to the higher end of recent ranges against other major currencies as traders looked to next week’s Federal Reserve policy meeting for indications on how soon the US central bank will start to taper stimulus.

The easing of concerns over potential storm damage took the market’s focus away from the International Energy Agency (IEA) and Organisation of the Petroleum Exporting Countries (OPEC) forecasts, which see an improvement in oil demand, but this news is expected to be supportive over the longer-term.

The surge of the Delta variant is set to partially delay oil demand recovery into the next year when robust economic growth and stronger recovery in fuel consumption will see global oil demand averaging 100.8 million barrels per day and exceeding pre-COVID levels, OPEC said.

The Vienna-based cartel raised its 2022 demand forecast by a shocking 900,000 barrels per day while the IEA raised its 2022 figures to 3.2 million barrels per day.

Economy

Seasonal Demand Decline Signals Pull Down Oil Prices

Published

16 minutes ago

13/08/2025

Adedapo Adesanya

By Adedapo Adesanya

Oil prices dipped on Tuesday as traders awaited an inventory report from the US Energy Information Administration (EIA) and began looking toward declining demand at the end of the summer driving season in early September.

Brent crude traded at $66.12 a barrel after it lost 51 cents or 0.77 per cent and the US West Texas Intermediate (WTI) crude finished at $63.17 per barrel after it weakened by 79 cents or 1.24 per cent.

The American Petroleum Institute (API) estimated that crude oil inventories in the US rose by 1.5 million barrels in the week ending August 8. So far this year, crude oil inventories are up more than 10 million barrels.

This suggests that the peak summer driving season is winding down. Gasoline inventories fell, but distillates, used for diesel and heating oil, saw a slight build.

The market will, however, await official data from the EIA to full grasp if demand was weakening as the API data signals.

Market analysts noted that if the EIA’s official figures confirm a crude build, it would reinforce expectations that refiners are dialing back runs as the Memorial Day-to-Labor Day demand window closes.

Meanwhile, new outlooks issued by Organisation of the Petroleum Exporting Countries (OPEC) and the EIA pointed to increased production this year, but both expect US output to decline in 2026 while other regions of the globe will increase oil and natural gas production.

OPEC’s monthly report on Tuesday said global oil demand will rise by 1.38 million barrels per day in 2026, up 100,000 from the previous forecast. Its 2025 projection was left unchanged.

The EIA forecast on Tuesday in a monthly report that US crude production will hit a record 13.41 million barrels per day in 2025 due to increases in well productivity, though lower oil prices will prompt a fall in output in 2026.

Also, US consumer prices increased in July as tariff-induced rising costs for imported goods helped to drive the strongest gain in six months for one measure of underlying inflation.

US President Donald Trump extended a tariff truce with China to November 10, while he and Russian President Vladimir Putin are due to meet in Alaska on Friday to discuss ending Russia’s war in Ukraine.

Economy

Dangote Refinery Drop PMS Ex-Depot Price by N30 to N820 Per Litre

Published

9 hours ago

12/08/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The ex-depot price of premium motor spirit (PMS), commonly called petrol, has been reduced by Dangote Petroleum Refinery by N30.

In a statement on Tuesday, the Chief Branding and Communications Officer of Dangote Group, Mr Anthony Chiejina, said the product would now be sold to marketers at N820 per litre and not the former price of N850 per litre.

It was stated that the price reduction is effective Tuesday, August 12, 2025, and it is “part of our unwavering commitment to national development,” assuring “the public of a consistent and uninterrupted supply of petroleum products.”

“In line with our dedication to operational excellence and sustainable energy solutions, Dangote Petroleum Refinery will commence the phased deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks for fuel distribution across Nigeria, effective August 15, 2025,” a part of the terse statement disclosed.

Economy

CSCS Simplifies Capital Market Transactions With *7270# USSD Code

Published

15 hours ago

12/08/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

In demonstration of its commitment to deepening the Nigerian capital market and making investment in the ecosystem seamless and more attractive, the Central Securities Clearing System (CSCS) Plc introduced its Unstructured Supplementary Service Data (USSD) code service.

The quick code, Business Post gathered, is also part of the innovations the company is deploying to boost market accessibility and make capital market access easier, faster, and more inclusive.

The USSD code service is *7270# and can be used by investors to view their investments on the go even without data on feature phones.

The *7270# USSD code service was developed by CSCS in collaboration with MTN Nigeria, the leading telecommunications firm in the country.

CSCS disclosed that with this simple code, investors can now retrieve vital information about their holdings and recent transactions directly from their mobile phones, and no internet access is required.

This is particularly significant for investors in underserved and remote areas and without access to smartphones or stable internet connections, it noted.

“The USSD service supports our broader mission to enhance financial inclusion by ensuring that every investor, regardless of location or digital literacy, can stay updated on their investments.

“It also reinforces our strategic focus on using technology to improve transparency, efficiency, and user experience across the Nigerian capital market,” the company disclosed.

“Whether you’re checking your portfolio on the go or helping a client stay informed, *7270# puts market information in the palm of your hand, securely, instantly, and with zero hassle,” it added.