By Adedapo Adesanya

The Organisation of the Petroleum Exporting Countries and allies (OPEC+) agreed to another modest oil output hike for June, which will remain largely on paper as long as the war in Iran continues to disrupt Gulf oil supplies through the Strait of Hormuz.

Seven OPEC+ countries will raise oil output targets by 188,000 barrels per day in June, the third consecutive ​monthly increase, OPEC+ said in a statement after an online meeting on Sunday.

The increase is the same as that agreed ​for May, minus the share of the United Arab Emirates (UAE), which exited the alliance on May 1 to focus on its energy future.

The seven members who met on Sunday were Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. With the UAE leaving, OPEC+ includes 21 members, including Iran and Russia. However, in recent years, only the seven nations plus the UAE have been involved in monthly production decisions.

The ⁠move is designed to show the group is ready to raise supplies once the war stops.

The Iran war, which began on February 28, and the resulting closure of the ​Hormuz Strait have throttled exports from ​OPEC+ members Saudi Arabia, ⁠Iraq and Kuwait, as well as from the UAE. Before the conflict, these producers were the only countries in the group able to raise production.

Top OPEC+ producer Saudi Arabia’s quota will rise ​to 10.291 million barrels per day in June under the agreement, far above actual production. The kingdom reported actual production of 7.76 million barrels per day to ‌OPEC in ⁠March.

Market analysts noted that even when shipping through the Strait of Hormuz ​reopens, it will take several weeks or months for flows to normalise.

In the meantime, the supply disruption has propelled oil prices to a four-year high above $125 per barrel.

Crude oil output from all OPEC+ members ⁠averaged 35.06 ​million barrels per day in March, down 7.70 million barrels per day from February, OPEC said in ​a report last month, with Iraq and Saudi Arabia making the biggest cuts due to constrained exports.

The seven OPEC+ members will meet again on June 7.

By Adedapo Adesanya

The prices of the two major crude oil grades moderated on Friday amid news of an Iranian proposal on negotiations with the United States. However, prices remained on track for weekly gains, with Iran still blocking the Strait of Hormuz and the US Navy blocking exports of Iranian crude.

Brent crude settled at $108.17 per barrel after losing $2.23 or 2.02 per cent, while the US West Texas Intermediate (WTI) crude finished at $101.94 a barrel after giving up $3.13 or 2.98 per cent. Both benchmarks gained 2.9 per cent over the week.

It was reported on Friday that Iran sent its latest proposal for negotiations with the US to Pakistani mediators on Thursday, a ⁠move that could improve prospects for breaking an impasse in efforts to end the Iran war.

Oil ​prices have been on the rise since the US and Israel attacked Iran at the end of ​February, resulting in the closure of the Strait of Hormuz and the disruption of shipments of about a fifth of ‌the world’s ⁠oil and liquefied natural gas supply.

Although a ceasefire has been in place since April 8, the oil market appeared to ​be accepting the uneasy truce in ⁠the conflict since Iran had already said and signalled that it won’t open the chokepoint to free traffic and won’t return to negotiations unless the American blockade is lifted.

There are fears of an escalation amid reports that US President Donald Trump would be briefed on further military options to force Iran’s hand to sign a deal, which could involve a ground operation.

Prices could spike to $140 per barrel, according to the Speaker of Iran’s Parliament, Mr Mohammad Bagher Ghalibaf, saying the US Administration is getting “junk advice” from people like [Treasury Secretary] Bessent, “who also push the blockade theory and cranked oil up to $120+. Next stop:140.”

The United Arab Emirates’ departure from the Organisation of the Petroleum Exporting Countries (OPEC) this week may still mean that ​the market’s most striking feature in the next few years is not too little supply, but too much. It left the cartel to boost production (target ~5 million barrels per day by 2027) and gain full control over its oil strategy and global partnerships.

By Adedapo Adesanya

The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to prioritise reforms that address constraints in the manufacturing sector as it tackles broader macroeconomic and fiscal challenges facing the Nigerian economy.

President of LCCI, Mr Leye Kupoluyi, gave the advice on Thursday in Lagos, at the chamber’s quarterly state of the nation’s economy news conference.

He stated that the manufacturing sector remained a critical driver of revenue and industrial growth, citing a strong performance in 2025.

Mr Kupoluyi noted that the sector contributed N1.17 trillion in Value Added Tax (VAT), representing a 45.61 per cent increase from N803.53 billion recorded in 2024, adding that the Company Income Tax (CIT) from the sector rose to N881.29 billion, up by 32.83 per cent from N663.46 billion in the previous year.

“This strong year-on-year growth reinforces the sector’s expanding role in generating government revenue and in Nigeria’s industrial development.

“Following these results, we call on the government to invest more in productive infrastructure and economic policies that drive growth through job creation, lower production costs, and fiscal interventions,” he said.

On the global terrain, the LCCI president noted that the global economy remained unsettled, shaped by geopolitical tensions, supply chain disruptions and monetary tightening in advanced economies.

He said these trends had sustained inflationary pressures globally, while exposing emerging markets, including Nigeria, to capital outflows and currency volatility.

Mr Kupoluyi noted that Nigeria had benefited from high crude oil prices, warned against mismanaging the resulting windfall, urging the government to channel oil revenues into the Sovereign Wealth Fund, critical infrastructure and diversification initiatives to reduce import dependence and support long-term growth.

On monetary policy, the chamber’s president commended the Central Bank of Nigeria’s Monetary Policy Committee for reducing the Monetary Policy Rate by 50 basis points to 26.5 per cent at its February meeting.

He described the move as a cautious but important shift, reflecting growing confidence amid improvements in inflation and external sector performance.

Mr Kupoluyi also highlighted improvements in the foreign exchange market, noting that the naira had shown relative stability and appreciated to about N1,350.79 to the Dollar in the official market.

He said the performance reflects improved liquidity, investor confidence and the impact of ongoing reforms, but called for stronger policy coordination, increased FX inflows and fiscal discipline to sustain stability.

On fiscal operations, the LCCI president raised concerns over weak capital budget implementation, citing the rollover of N7.71 trillion in unexecuted 2025 capital projects.

He said delays in fund releases, bureaucratic bottlenecks and inefficiencies had continued to undermine project delivery and strain contractors.

He urged the government to develop a more effective framework for capital budget releases to ensure timely funding and execution of projects.

Addressing the oil and gas sector, Mr Kupoluyi welcomed the ongoing reform efforts aimed at boosting crude oil production and improving regulatory processes.

He called for a fully digital regulatory ecosystem to enhance transparency, accelerate approvals and restore investor confidence.

The official added that high global oil prices presented an opportunity for Nigeria to strengthen its position as a major supplier, provided local production and refining capacities are improved.

The LCCI president, however, expressed concern over high import duties on paper, printing materials and related inputs, noting that the policy had increased production costs across several value chains.

“The situation is worsened by port delays, multiple regulatory checks and inconsistent tariff classifications.

The chamber also called for a review of import duties, integration of regulatory agencies into the National Single Window and measures to reduce cargo clearance timelines.

“A balanced policy mix of moderate tariffs, support for local production and stable macroeconomic conditions would enhance industrial growth and reduce business costs,” he said.

He also reiterated its commitment to continued engagement with government and stakeholders to promote policies that support a thriving business environment.