Economy

Oil Falls as Saudi Discontinues Additional Cut

Published

5 years ago

09/06/2020

By Adedapo Adesanya

Crude oil fell on Monday after Saudi Arabia announced that it will not continue with its additional one million barrels daily cut after June.

Brent crude, the international benchmark, which traded above $42 per barrel early yesterday, fell by 3.71 percent or $1.54 to sell at $40.76 per barrel.

Likewise, the US West Texas Intermediate (WTI) crude futures, which rose above $40, also fell by 3.69 percent or $1.46 to trade at $38.09 per barrel.

The Organisation of the Petroleum Exporting Countries and its allies known as OPEC+ agreed over the weekend to extend the 9.7 million barrels per day cap to July as laggards like Nigeria and Iran promised to keep up.

Saudi Arabia, which had curtailed output by more than its agreed quota, said at a press conference Monday that those extra reductions will last just one month as planned, as the measures have served their purpose.

Saudi Energy Minister, Prince Abdulaziz bin Salman, said that this would not continue in July, when the Kingdom is expected to pump its OPEC quota, amid signs of demand recovery as nations around the world lift strict lockdown measures.

“The voluntary cut has served its purpose and we are moving on. A good chunk of what we will increase in July will go into domestic consumption,” Prince Abdulaziz said.

Saudi, which in May announced an extra cut of one million barrels per day in June, uses its crude for power generation typically increases in the hot summer months, the minister noted.

With this, it means Saudi Arabia will boost output in July to match its output OPEC quota while ending deeper, voluntary cut amid signs of global demand recovering, the Saudi energy minister said on Monday.

The OPEC’s largest producer sharply hiked its official selling prices and this hike erased almost all of the discounts the Kingdom made during its brief price war with Russia, with the steepest increases hitting July exports to Asia.

However, traders are still worried about a possible problem that could arise such as deteriorating relations between the United States and China.

The problem of a second wave of COVID-19 infections are still possible, which will mean government can order a second batch of lockdown. The return of US shale supply is also a big worry.

This is, however, minimal right now as Tropical Storm Cristobal in United States pushed offshore drillers to halt about a third of oil production, amounting to about 636,000 barrels of daily output, due to the storm.

The oil market continues to recover with China’s crude imports hitting a record high last month, while consumption in other major economies such as India is improving.

Also, Libya’s biggest oil fields are gradually resuming production after five months of shutdown due to civil war.

According to reports, output will start at an initial 30,000 barrels per day at Sharara and it will take three months to return to full capacity and supply from El-Feel also restarted.

Economy

MRS Oil, Heyden, Ardova to Sell Dangote Petrol at N970 Per Litre

Published

15 hours ago

19/01/2025

Dipo Olowookere

By Dipo Olowookere

The three major partners of the Dangote Refinery in the Lekki area of Lagos, MRS Oil Nigeria, Heyden and Ardova Plc, will retail premium motor spirit (PMS), otherwise known as petrol, at its stations across the country at N970 per litre.

This information was revealed by Dangote Refinery, owned by one of Africa’s richest businessmen, Mr Aliko Dangote.

The three independent oil marketers entered into a bulk-purchasing agreement with the oil facility, which has the capacity to refinery about 650,000 barrels of crude oil per day.

The deal, first sealed by MRS Oil, ensured that it retailed fuel at its petrol stations at N935 per cent litre.

However, last week, Dangote Refinery increased its ex-depot price from N899.50 per litre to N950 per litre due to a rise in the price of crude oil to $80 per litre in the global market from about $72 per barrel.

In a statement on Sunday made available to Business Post, Dangote Refinery said, “All our partners, including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide.

“We have absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT).”

Economy

NGX All-Share Index Jumps 0.17%

Published

2 days ago

18/01/2025

Dipo Olowookere

By Dipo Olowookere

A 0.17 per cent growth was recorded by the Nigerian Exchange (NGX) Limited on Friday, extending the stay of the local bourse in the positive territory.

This uptrend was maintained despite profit-taking in the banking sector, which left its index down by 0.23 per cent at the close of trading activities.

Business Post reports that the insurance industry expanded by 4.04 per cent during the session, the energy counter improved by 1.05 per cent, and the consumer goods space gained 0.58 per cent, while the industrial goods sector closed flat.

Consequently, the All-Share Index (ASI) went up by 170.62 points to 102,353.68 points from 102,183.06 points and the market capitalisation grew by N541 billion to N62.851 trillion from N62.310 trillion.

There were 34 price gainers and 22 price losers yesterday, indicating a positive market breadth index and strong investor sentiment.

The trio of Caverton, Livestock Feeds and Sovereign Trust Insurance appreciated by 10.00 per cent each during the session to quote at N2.20, N5.94, and N1.10, respectively, as Neimeth jumped by 994 per cent to N3.43, and Royal Exchange increased by 9.88 per cent to 89 Kobo.

On its part, Academy Press lost 9.74 per cent to close at N3.15, PZ Cussons declined by 9.09 per cent to N25.00, DAAR Communications weakened by 8.64 per cent to 74 Kobo, Transcorp Power shed 5.91 per cent to settle at N46.95, and Dangote Sugar fell by 4.94 per cent to N38.50.

A total of 327.8 million shares valued at N11.8 billion were traded in 11,905 deals on Friday versus the 472.2 million shares worth N16.7 billion transacted in 12,336 deals on Thursday, representing a decline in the trading volume, value, and number of deals by 30.58 per cent, 29.34 per cent and 3.49 per cent apiece.

Access Holdings recorded the highest sales with 49.1 million stocks sold for N1.2 billion, Fidelity Bank exchanged 20.4 million shares valued at N359.0 million, UBA traded 20.1 million equities worth N681.0 million, Oando transacted 14.8 million shares for N998.1 million, and Universal Insurance traded 13.8 million stocks worth N8.7 million.

Economy

NASD OTC Exchange Gains 0.26%

Published

2 days ago

18/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange extended its upward movement with a 0.26 per cent gain on Friday, January 17 amid renewed interest in unlisted stocks.

This raised the market capitalisation of the trading platform by N2.79 billion at the close of business to N1.075 trillion from the N1.072 trillion it closed in the preceding session.

In the same vein, the NASD Unlisted Security Index (NSI) went up by 8.08 points at the close of transactions to 3,111.91 points from the 3,103.83 points recorded at the previous session.

Yesterday, the volume of securities traded by investors went down by 606 per cent to 486,215 units from 1.2 million units, the value of shares shrank by 84.7 per cent to N2.8 million from N18.0 million, and the number of deals decreased by 65 per cent to 14 deals from the 33 deals carried out a day earlier.

In the final trading day of the week, there were three price gainers and one price loser, Geo-Fluids Plc, which lost 9 Kobo to finish at N4.70 per unit versus the preceding session’s price of N4.79 per unit.

On the flip side, Okitipupa Plc gained N3.60 to settle at N39.59 per share compared with the previous day’s N35.99 per share, Industrial and General Insurance (IGI) Plc added 3 Kobo to wrap at 36 Kobo per unit compared with the preceding session’s 33 Kobo per share, as FrieslandCampina Wamco Nigeria Plc improved its value by 49 Kobo to N39.65 per unit from N39.16 per unit.

At the close of business, FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, trailed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and Afriland Properties Plc with 690,825 sold for N11.1 million.

The most active stock by volume (year-to-date) remained IGI Plc with 23.5 million units worth N5.3 million, followed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and FrieslandCampina Wamco Nigeria Plc with 3.4 million units sold for N134.9 million.