Economy
Global Oil Demand to Rise 1.7mbpd in 2022—IEA
By Adedapo Adesanya
Global oil demand is expected to rise by 1.7 million barrels per day this year compared to 2021.
In its latest Oil Market Report (OMR), the International Energy Agency (IEA) revised downward the trend by 100,000 barrels per day.
The Paris-based agency said its demand growth estimate will be supported by high prices, which will weigh on consumption.
“Higher prices and a deteriorating economic environment have started to take their toll on oil demand, but strong power generation use and a recovery in China are providing a partial offset,” it stated.
Total global oil demand is expected to average 99.2 million barrels per day in 2022, up by 1.7 million barrels per day compared to 2021, the IEA said in its July forecast.
In June, the agency had expected annual growth of 1.8 million barrels per day in oil demand for 2022. A month ago, the IEA saw 2023 demand rising further by 2.2 million barrels per day to a record 101.6 million barrels per day.
The latest report downgrades the forecast by 100,000 barrels per day to an expected increase of 2.1 million barrels per day next year.
Demand growth in 2023 is set to be driven by a strong growth trend in developing economies, the agency said.
However, the IEA warned that “rarely has the outlook for oil markets been more uncertain.”
“For now, weaker-than-expected oil demand growth in advanced economies and resilient Russian supply has loosened headline balances,” according to the agency.
High fuel prices have already started to dent oil consumption in the OECD, but this was largely offset by a stronger-than-expected demand rebound in emerging and developing economies led by China, the IEA said.
While oil market sentiment has materially deteriorated since June amid expectations of economic slowdown and fears of recession, “price premiums for physical barrels widened on rising seasonal demand for both crude and products while supply remains constrained,” the agency noted.
“As an EU embargo on Russian oil is set to come into full force at the end of the year, the oil market may tighten once again. With readily available spare capacity running low in both the upstream and downstream, it may be up to demand-side measures to bring down consumption and fuel costs that pose a threat to stability, most notably in emerging markets,” said the IEA.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 0.55 per cent on Thursday, April 24 after the prices of three stocks on the platform ended in green.
This added N10.48 billion to the market capitalisation of the bourse, closing at N1.918 trillion compared with the N1.908 trillion it ended in the preceding session.
In the same vein, the NASD Unlisted Security Index (NSI) went up during the session by 17.90 points to 3,276.98 points from the previous session’s 3,259.08 points.
The market was dominated by bargain-hunting activities due to renewed investor confidence. None of the securities on the NASD ended in red yesterday.
However, Central Securities Clearing System (CSCS) Plc gained N1.97 to close at N21.71 per unit compared with Wednesday’s price of N19.74 per unit, FrieslandCampina Wamco Nigeria Plc appreciated by 15 Kobo to end at N37.95 per share, in contrast to midweek’s value of N37.80 per share, and Geo-Fluids Plc grew by 8 Kobo to settle at N1.70 per unit versus the preceding day’s price of N1.62 per unit.
During the trading day, the volume of securities transacted by the market participants increased by 19,558.9 per cent to 206.2 million units from 1.05 million units, the value of transactions jumped by 13,509.2 per cent to N354.1 million from N2.6 million, and the number of deals rose by 245.5 per cent to 38 deals from 11 deals.
When trading activities finished for the day, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units sold for N520.9 million, followed by Geo-Fluids Plc with 250.9 million units worth N441.0 million, and Okitipupa Plc with 153.6 million units valued at N4.9 billion.
Also, Okitipupa Plc remained the most active stock by value (year-to-date) with 153.6 million units valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 14.9 million units worth N573.2 million, and Impresit Bakolori Plc with 533.9 million units valued at N520.9 million.
By Adedapo Adesanya
The value of the Naira slightly appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, April 24, after coming under pressure in two consecutive trading session.
Yesterday, it gained 0.03 per cent or 50 Kobo on the greenback to sell for N1,603.01/$1 compared with the previous day’s rate of N1,603.51/$1, according to data from the Central Bank of Nigeria (CBN).
Similarly, the Nigerian currency improved its value against the Pound Sterling in the official market yesterday by N9.05 to close at N2,128.50/£1 compared with Wednesday’s value of N2,137.55/£1 and gained N17.69 against the Euro to finish at N1,819.89/€1, in contrast to midweek’s value of N1,837.58/€1.
However, in the black market, the Nigerian Naira depreciated against the Dollar during the trading session by N2 to settle at N1,607/$1 versus Wednesday’s value of N1,605/$1.
The local forex market reacted to the assurance given by apex bank in the ongoing IMF Spring Meetings in the US that it would continue to drive policies that will support the FX market.
Meanwhile, the cryptocurrency market witnessed recoveries after profit-taking amid declining US Dollar index, which is largely tied to mixed signals out of the world’s largest economy.
Profit-taking and conflicting messages from the President Donald Trump of the United States over a trade war with China have dominated the market, including comments from Treasury Secretary Scott Bessent that there’s no unilateral plan to lift US tariffs on Chinese goods, contradicting Trump’s suggestion that tariff rates could drop in the coming weeks.
Mr Trump has signaled he would not remove Federal Reserve Chair Jerome Powell and suggested a softer stance on trade with China.
Investors continue to struggle to interpret the policy direction as President Trump also hinted at a “fair deal” with the world’s second-largest economy.
Yesterday, Cardano (ADA) rose by 4.7 per cent to $0.7191, Dogecoin (DOGE) appreciated by 4.2 per cent to $0.1811, Solana (SOL) expanded by 2.8 per cent to $152.84, and Litecoin (LTC) improved by 2.4 per cent to $84.66.
Further, Ripple (XRP) jumped by 1.3 per cent to $2.13, Bitcoin (BTC) added 1.1 per cent to sell at $93,534.98, Binance Coin (BNB) soared by 0.7 per cent to $608.65, and Ethereum (ETH) increased by 0.2 per cent to $1,774.57, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
The bulls tightened their grip on the Nigerian Exchange (NGX) Limited on Thursday with a further 0.75 per cent rise despite profit-taking in the banking sector.
Data showed that the banking index went down by 0.20 per cent during the session and the commodity sector closed flat.
However, the insurance space grew by 4.32 per cent, the consumer goods counter improved by 2.35 per cent, the industrial goods sector gained 1.29 per cent, and the energy industrial appreciated by 0.27 per cent.
Consequently, the All-Share Index (ASI) surged by 790.59 points to 106,074.26 points from 105,283.67 points and the market capitalisation advanced by N508 billion to N66.667 trillion from N66.159 trillion.
Investor sentiment remained bullish yesterday as Customs Street ended with 43 price gainers and 16 price losers, representing a positive market breath index.
Cadbury Nigeria, Eterna, Ikeja Hotel, and Nestle Nigeria all chalked up 10.00 per cent each to quote at N24.20, N36.30, N11.00, and N1,100.00, respectively, and Academy Press gained 9.96 per cent to trade at N2.87.
However, John Holt lost 10.00 per cent to sell for N6.30, Haldane McCall declined by 9.96 per cent to N4.70, Multiverse depreciated by 9.83 per cent to N7.80, Guinea Insurance depleted by 8.57 per cent to 64 Kobo, and Japaul tumbled by 6.19 per cent to N1.97.
The most active stock for the session was Access Holdings with the sale of 48.5 million units valued at N1.2 billion, Fidelity Bank traded 40.4 million units worth N801.8 million, Zenith Bank exchanged 23.7 million units for N1.1 billion, GTCO sold 17.1 million units worth N1.0 billion, and Chams transacted 13.7 million units valued at N30.1 million.
At the close of trades, a total of 328.3 million equities worth N10.4 billion exchanged hands in 12,142 deals versus the 744.8 million equities valued at N18.3 billion traded in 11,226 deals at midweek, indicating a rise in the number of deals by 8.16 per cent, and a decline in the trading volume and value by 55.92 per cent, and 43.17 per cent, respectively.
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