Economy
Oil Falls 1% as Investors Weigh Supply Outlook, Venezuela Situation
By Adedapo Adesanya
Oil was down on Tuesday as the market weighed expectations of ample global supply this year against uncertainty around Venezuelan crude output after the US capture of President Nicolas Maduro.
Brent crude futures declined by 69 cents or 1.1 per cent to $61.07 a barrel and the US West Texas Intermediate (WTI) crude tumbled by 79 cents or 1.4 per cent to $57.53 a barrel.
Oil supply will be sufficient in 2026, with or without an increase in production from Venezuela, which is a member of the Organisation of the Petroleum Exporting Countries (OPEC).
US President Donald Trump wants the big American oil firms to return to Venezuela and invest in rebuilding the oil infrastructure in the country holding the world’s biggest proven oil reserves, estimated at about 303 billion barrels.
Venezuela, a founding member of OPEC, has more oil reserves than each of its fellow OPEC members and top exporters in the Gulf, including Saudi Arabia, Iraq, the United Arab Emirates (UAE), and Iran.
With Maduro out, US oil giants are set to invest billions of US Dollars to fix the oil infrastructure and start making money for Venezuela, according to President Trump.
Venezuela’s oil sector has long been in decline, due in part to underinvestment and US sanctions. Oil production from the country averaged 1.1 million barrels per day last year. Exxon, ConocoPhilips, and Chevron are some of the names that could make return to the South American country.
Morgan Stanley analysts said in a note on Tuesday that global oil demand likely grew by around 900,000 barrels per day last year, compared to a historical trend rate of 1.2 million barrels per day.
OPEC supply grew 1.6 million barrels per day and non-OPEC supply grew about 2.4 million barrels per day between the fourth quarters of 2024 and 2025, the Morgan Stanley analysts said.
The bank said oil markets could be in a surplus of as much as 3 million barrels per day in the first half of 2026.
Saudi Arabia has cut the price of its flagship crude grade Arab Light loading for Asia in February, in the third consecutive monthly reduction amid ample supply and weakened Middle Eastern benchmarks.
Saudi Arabia’s decision to cut the prices of all its crude grades follows this weekend’s short OPEC+ meeting, at which the eight producers implementing the cuts reaffirmed they would keep oil production steady through the first quarter of 2026.
By Dipo Olowookere
Renewed bargain-hunting by investors halted the losing streaks on the Nigerian Exchange (NGX) Limited on Monday, though the bears still lurk around.
The local stock market performance indices closed higher by 0.97 per cent on yesterday, as market participants mopped up some large-cap banking equities like GTCO, First Holdco and others.
First Holdco gained 10.00 per cent to trade at N60.50, GTCO also appreciated by 10.00 per cent to N127.10, International Energy Insurance expanded by 9.88 per cent to N5.56, Zenith Bank grew by 7.09 per cent to N117.80, and NPF Microfinance Bank chalked up 5.12 per cent to settle at N5.20.
Conversely, Zichis shed 10.00 per cent to finish at N23.40, Consolidated Hallmark slumped by 9.94 per cent to N6.43, Eterna declined by 9.90 per cent to N27.75, Deap Capital crashed by 9.82 per cent to N4.41, and Austin Laz gave up 9.74 per cent to quote at N28.12.
Business Post reports that investor sentiment remained weak as Customs Street ended with 21 price gainers and 37 price losers, representing a negative market breadth index.
During the session, the insurance counter lost 1.43 per cent, the consumer goods decreased by 0.40 per cent, and the energy index tumbled by 0.06 per cent. But the banking space appreciated by 4.84 per cent, and the industrial goods sector improved by 0.04 per cent.
As a result, the All-Share Index (ASI) went up by 2,261.84 points to 238,203.11 points from 235,941.27 points, and the market capitalisation rose by N1.508 trillion to N152.835 trillion from N151.327 trillion.
A total of 475.8 million stocks worth N36.5 billion exchanged hands in 63,567 deals on Monday versus the 440.4 million stocks valued at N24.7 billion transacted in 50,273 deals last Friday, implying a jump in the trading volume, value, and number of deals by 8.04 per cent, 47.77 per cent, and 6.55 per cent, respectively.
Fidelity Bank was the busiest equity, with a turnover of 48.7 million units sold for N894.2 million, UBA exchanged 42.3 million units worth N1.7 billion, Access Holdings traded 39.3 million units valued at N886.1 million, Zenith Bank transacted 30.0 million units worth N3.5 billion, and MTN Nigeria sold 20.8 million units valued at N16.6 billion.
By Adedapo Adesanya
Oil prices settled lower by more than 3 per cent on Monday as supply concerns eased after US Vice President JD Vance said progress has been made in talks with Iran and the Strait of Hormuz was open.
Brent crude dropped $2.67 or 3.31 per cent to trade at $77.90 a barrel, while the US West Texas Intermediate (WTI) crude futures settled at $74.82 a barrel after shedding $1.78 or 2.32 per cent.
Prices had climbed after threats by US President Donald Trump to restart the Iran war, while Iran announced that it had again closed the Strait of Hormuz.
High-ranking American and Iranian officials wrapped up their first round of talks in Switzerland on Monday, continuing the discussions that began on Sunday under the terms of a memorandum of understanding reached last week to extend a tenuous ceasefire from April for at least another 60 days.
The US authorised Iranian oil sales on Monday. The general license, announced by the Treasury Department, allows the sale of crude oil, petrochemical and petroleum products of Iranian origin through August 21.
At least three supertankers, carrying a total of 6 million barrels of Iranian crude, moved to transit the Strait of Hormuz heading to Singapore early on Monday.
Amid lingering concerns over the Strait of Hormuz, Iran is rapidly pushing out crude supplies that accumulated after failing to circumvent US restrictions in recent months.
Reuters reported that Iran did not negotiate on its nuclear programme and did not accept any new commitments in Sunday’s talks with the US in Switzerland, citing an Iranian Foreign Ministry spokesperson.
More Middle East producers began to lift more oil, with the United Arab Emirates (UAE), Kuwait and Iraq offering more oil to customers in the past week.
In other producers like Saudi Arabia, crude oil exports from Saudi Arabia fell for a second straight month in April and hit a record low of 3.99 million barrels per day, compared with 4.974 million barrels per day in March.
Another producer under the Organisation of the Petroleum Exporting Countries (OPEC), Iraq, plans to restore crude production gradually to between 4.2 million barrels per day and 4.3 million barrels per day.
By Dipo Olowookere
The week-on-week trading volume on the Nigerian Exchange (NGX) Limited contracted by 38 per cent amid profit-taking by investors as a result of cautious trading.
Data from Customs Street showed that in the five-day trading week, market participants transacted 3.075 billion shares worth N254.614 billion in 287,157 deals, in contrast to the 4.964 billion shares valued at N207.521 billion traded in 235,966 deals in the preceding week.
Analysis showed that financial equities led the activity chart, with 2.074 billion units sold for N64.490 billion in 121,981 deals, contributing 67.44 per cent and 25.33 per cent to the total trading volume and value, respectively.
Services stocks recorded a turnover of 175.743 million units worth N2.759 billion in 19,590 deals, while consumer goods shares exchanged 133.375 million units valued at N12.680 billion in 30,730 deals.
Access Holdings, Sterling Holdings, and Jaiz Bank accounted for 819.234 million shares worth N12.247 billion in 21,809 deals, contributing 26.64 per cent and 4.81 per cent to the total trading volume and value, respectively.
In the week, 11 equities gained weight versus 40 equities a week earlier, 78 shares lost weight versus 53 shares in the previous week, and 57 stocks closed flat versus 53 stocks of the preceding week.
Cornerstone Insurance chalked up 11.01 per cent to sell for N6.05, Academy Press rose by 8.72 per cent to N8.10, Conoil improved by 8.25 per cent to N210.00, Neimeth expanded by 4.68 per cent to N8.95, and Ikeja Hotel grew by 3.36 per cent to N44.60.
On the flip side, International Energy Insurance shed 28.83 per cent to trade at N5.06, First Holdco lost 20.29 per cent to finish at N55.00, John Holt slipped by 17.65 per cent to N11.20, NAHCO depreciated by 17.27 per cent to N148.50, and Zichis dropped 16.13 per cent to settle at N26.00.
Business Post reports that the All-Share Index (ASI) and the market capitalisation depreciated by 3.59 per cent to close the week at 235,941.27 points and N151.327 trillion, respectively. Also, all other indices finished lower except the sovereign bond index, which remained unchanged.
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