Oil Futures Close Mixed on Demand Worries

Image

By Adedapo Adesanya

Fluctuations marred the oil market on Thursday, August 6 as both major benchmarks alternated in and out of the positive territory.

As at 9 pm, the international benchmark, Brent crude futures, were up by 4 cents or 0.03 per cent at $45.18 per barrel, while the US benchmark, West Texas Intermediate (WTI) crude futures, fell 18 cents or 0.43 per cent to $42.00 per barrel.

Prices had found support to lift it to its highest point in five months previously over a weakened dollar and on the report of a large drop in crude stockpiles, but sentiment about fuel demand pressured prices.

Another boost came from news that the second largest producer of the Organisation of the Petroleum Exporting Countries (OPEC), Iraq, planned production cuts in line with its laggard status.

The OPEC member said it would make an additional cut in its oil production of about 400,000 barrels per day in August to compensate for its overproduction over the past three months under the cartel supply reduction pact.

This news lifted the market but a long term worry – demand soon nipped it due to an economic slowdown due to the coronavirus pandemic which isn’t showing signs of slowing down.

The market is also holding onto weaker American dollar as it makes dollar-priced oil cheaper for holders of other currencies. The index was up around 0.1 per cent on Thursday after falling for two sessions but stayed near two-year lows.

The dollar index, which measures the greenback against a basket of six major currencies, logged its biggest monthly percentage fall in a decade in July.

Worsening oil demand is something that investors will be looking into now as some countries implement partial lockdowns to battle the COVID-19 pandemic, prompting refiners to start planning for lower crude runs in order to prevent a problem of plenty at home.

Now that the market will see an additional 1.5 million barrels per day till December compared to what has been reduced from May through July, analysts are of the view that the market may start losing hope about expected recovery.

Share
Related Stories
Image
06-December-2023

Brent, WTI Weaken on Stronger US Dollar, Demand Worries

By Adedapo Adesanya  The prices of the crude oil benchmarks, Brent and the West Texas Intermediate (WTI) fell to a near five-month low on Tuesday on a stronger US Dollar and demand concerns. According to data obtained by Business Post, Brent futures went down by 83 cents or 1.1 per cent to $77.20 a barrel and WTI weakened by 72 cents or 1.0 per cent to $72.32 per barrel. The prices were the lowest for both crude benchmarks since July 6. This put the market down for a fourth day in a row on doubts over voluntary supply cuts announced by

Image
05-December-2023

Naira Gains 9.6% at NAFEM as Bitcoin Hits $42,000

By Adedapo Adesanya The Nigerian Naira opened the week stronger on the American Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, December 4 as pressure eased amid continued foreign exchange (FX) liquidity squeeze in the market. In the official market, the Naira appreciated against the greenback by 9.6 per cent or N89.42 to settle at N837.77/$1 compared with last Friday’s closing price of N927.19/$1. Also, the Naira gained N172.53 against the Pound Sterling in the NAFEM segment of the market during the session to close at N1,031.57/£1 versus last Friday’s rate of N1,204.10/£1 and against the Euro,

Image
06-December-2023

NNPC Makes Changes to Crude Cargoes Pricing

By Adedapo Adesanya The Nigerian National Petroleum Company (NNPC) Limited will alter how its crude cargoes are priced from January 2024. According to a new circular, the state oil company will start pricing its supplies against the monthly average of Dated Brent, the physical crude benchmark, raising worries that the nation’s barrels may become more risky. Prior to this latest move, Nigeria prices its crude cargoes based on Dated Brent’s average settlement in the five days after loading. NNPC plans to stick with the initial nominated loading dates for pricing purposes, according to the circular. Bloomberg reported that traders said

Image
05-December-2023

Bitmama Acquires PayDay in Remittance Expansion Drive

By Adedapo Adesanya Bitmama Incorporated, a crypto exchange company, has confirmed the acquisition of Payday, a virtual card service provider. According to reports, the chief executive of Bitmama, Mrs Ruth Iselema, has offered PayDay investors $1 million worth of equity in the crypto company at a $30 million valuation. The news comes barely nine months after Payday announced its $3 million seed round and three months after its exploration of sale options was confirmed. Facilitated through Bitmama’s cross-border payments product, Changera, the acquisition marks a pivotal shift from earlier speculations, including a potential acquisition by lead investor, Moniepoint. Changera is

More Stories
Image
11-December-2017

Lagos Budgets N1.046tr for 2018, Targets N720b IGR

By Modupe Gbadeyanka Governor Akinwunmi Ambode of Lagos State on Monday presented a budget of N1.046 trillion for the 2018 fiscal year to the state House of Assembly. In the appropriation bill tagged ‘Budget of Progress and Development,’ 67 percent was earmarked for capital expenditure, while 33 percent was allotted for recurrent expenditure. While addressing the lawmakers, the Governor promised to complete all ongoing projects in the state as well as initiate new ones to consolidate on the development recorded in the last 30 months of his administration. He said more effort would be placed on infrastructure, education, transportation/traffic management,

Image
27-April-2020

Buhari Locks Down Kano for Two Weeks

By Dipo Olowookere On Monday, President Muhammadu Buhari announced the immediate lockdown of Kano State over the health crisis in the ancient city. In his speech on Monday night, President Buhari said the total lockdown will last two weeks and efforts would be made to ensure the state is assisted to bring situations under control. Kano State had witnessed strange deaths in the past days, raising tensions in some parts of the country. While the state government led by Mr Abdullahi Ganduje claimed the deaths were not unusual, others have said they may be linked with the deadly coronavirus disease.

Image
20-March-2020

Cadbury Nigeria Delivers Double-Digit Bottom-Line Growth in FY19

By Dipo Olowookere When in March 2019 Cadbury Nigeria Plc announced that Mrs Oyeyimika Adeboye will from April 1, 2019 become its first female Managing Director since its establishment over five decades ago, those who are very close to her knew it was the beginning of good things to come the way of the beverage company, which had before then been battling to remain highly competitive in the industry. True to expectations, the assumption of Mrs Adeboye, who took over from her predecessor, Mr Amir Shamsi, has resulted into a turnaround of fortunes for Cadbury Nigeria, which has its headquarters

Image
07-March-2018

Wema Bank’s ALAT Gives Quick Loans, Virtual Dollar Card to Customers

By Dipo Olowookere Nigeria’s only fully digital bank created by Wema Bank Plc, ALAT, has released two exciting new features; quick short-term loans and a virtual dollar card for paying online internationally. A statement issued in Lagos by the lender explained that ALAT Loans are accessible to all ALAT customers through the bank’s Android and iOS apps. The ALAT Virtual Dollar Card is a non-physical, dollar-denominated debit card designed for online payments. Like ALAT Loans, the card is available to all the bank’s customers through its apps. In addition, customers of the bank can now connect other Nigerian bank accounts

Image
21-December-2022

UPDC REIT Tops Gainers’ Chart as Neimeth Leads Losers’ Table

By Dipo Olowookere The performance of the Nigerian Exchange (NGX) Limited was lukewarm on Tuesday as investors set their eyes on Christmas sales. This brought about mild profit-taking during the session and left the market flat. It was observed that the market breadth was negative yesterday, as there were 16 price losers and 11 price gainers, indicating a weak investor sentiment. The highest price riser, UPDC REIT, managed to gain 8.62 per cent during the session to settle at N3.15, while the stock in a distant second, Royal Exchange, appreciated by 5.95 per cent to 89 Kobo. Ardova rose by

Image
18-February-2020

Stanbic IBTC, Afreximbank Sign N300bn Bond Programme

By Dipo Olowookere The duo of Stanbic IBTC Capital Limited and African Export-Import Bank (Afreximbank) has signed a N300 billion domestic bond programme. The signing of this bond scheme was done at the Eko Hotel & Suites, marking the official kick-off of the initiative. The establishment of the debt issuance programme in the Nigerian capital market by Afreximbank makes it the third supranational ever to join an elite group of Nigeria’s development partners, enabling the domestic capital market. It is vital to establish the bond programme in local currency, considering the strong liquidity and current low yields in the domestic

Image
10-March-2017

SureBüddy Unveils New Insurance App

By Dipo Olowookere SureBüddy, an android application that has today launched into market, brings sponsored insurance and insurance related products to Uganda. SureBüddy is simple and easy to use – the app renders advertisements, the consumer watches the ads, and then receives free cover as a reward. Ad images are non-intrusive, use very little data, and disappear with a click. SureBüddy’s cover is sponsored for the user as all costs are paid by the advertiser. SureBüddy then uses the advertising revenue to reward the user directly with cover, and in this instance, the consumer benefits from watching advertisements. “Strive Masiywa

Image
17-August-2019

Zedcrest Capital Emerges Nigeria’s Best Financial Management Firm

A Dubai-based publication, International Business Magazine, has named Zedcrest Capital Limited, a new-age financial solutions powerhouse, as the Best Financial Management Firm in Nigeria. This was made through an announcement on the official website of the media platform on Monday, August 12, 2019. The award becomes the third international recognition received by Zedcrest Capital Limited this year, having emerged as the “Proprietary Investment Company of the Year” at the International Standard Leadership Summit & Excellence Awards organized by World Quality Alliance and adjudged the “Best Proprietary Investments Firm in Nigeria” by international magazine, Global Business Outlook. Chief executive of Zedcrest

Ad
Ad
Recent Stories
Image
06-December-2023

Nigerian Startup Pivo Shuts Down Operations After Raising $2m

By Aduragbemi Omiyale A Nigerian startup, Pivo, which raised about $2 million in November 2022, is shutting down its operations, TechCabal is reporting. The platform quoted the co-founder and chief executive of the firm, Ms Nkiru Amadi-Emina, as confirming the intention of the company to fold up. However, no specific reason was given for the decision, though some organisations have been closing shops in Nigeria lately due to the harsh operating environment. One of the biggest pharmaceutical firms in the country, GlaxoSmithKline (GSK), announced a few months ago that it would no longer operate its business from Nigeria, opting to

Image
06-December-2023

Morgan Capital Restores iTrade Service After 48-Hour Glitch

By Dipo Olowookere The online stock trading platform of Morgan Capital Securities Limited, iTrade, is now back online. The iTrade service went offline on Monday due to a technical glitch, which the company confirmed has been resolved, allowing its numerous clients to buy and sell shares and other securities without hassle. “Thank you for your patience and understanding. “This is to inform you that the trading platform (iTrade) is now fully up and running to enable you to trade seamlessly. “Our sincere apologies for any inconvenience caused as a result of this,” a statement from the company, which was sighted

Image
06-December-2023

OTC Securities Exchange Rises 0.47% as Food Concepts, Two Others Gain

By Adedapo Adesanya  Appreciation in the stock prices of Newrest Airline Services & Logistics (ASL) Plc, Food Concepts Plc, and UBN Property Plc saw the NASD Over-the-Counter (OTC) Securities Exchange extend its gain by 0.47 per cent on Tuesday, December 5. Data showed that Newrest increased its price by N1.61 during the session to settle at N17.71 per unit compared with the previous day’s price of N16.10 per unit, Food Concepts Plc (owners of Chicken Republic) gained 15 Kobo to close the day at N1.65 per share versus N1.50 per share, and UBN Property Plc rose by 13 Kobo to

Image
06-December-2023

Naira Sells N806.73/$1 at Official Market Amid 92.9% Jump in Forex Supply

By Adedapo Adesanya The supply of foreign exchange (FX) into the Nigerian Autonomous Foreign Exchange Market (NAFEM) improved by 92.9 per cent or $68.7 million on Tuesday to $142.63 million from $73.93 million on Monday, according to data obtained from the FMDQ Securities Exchange. This improvement in forex liquidity into the official market supported the Naira to gain weight against the United States Dollar yesterday, as its value soared by N31.04 or 3.7 per cent to N806.73/$1 from the N837.77/$ it ended a day earlier. This also trickled down to the parallel market, which witnessed less pressure from customers, helping

Image
06-December-2023

Brent, WTI Weaken on Stronger US Dollar, Demand Worries

By Adedapo Adesanya  The prices of the crude oil benchmarks, Brent and the West Texas Intermediate (WTI) fell to a near five-month low on Tuesday on a stronger US Dollar and demand concerns. According to data obtained by Business Post, Brent futures went down by 83 cents or 1.1 per cent to $77.20 a barrel and WTI weakened by 72 cents or 1.0 per cent to $72.32 per barrel. The prices were the lowest for both crude benchmarks since July 6. This put the market down for a fourth day in a row on doubts over voluntary supply cuts announced by

Image
06-December-2023

NGX Gains 0.43% as Buying Activities in GTCO, FBNH, Others Intensify

By Dipo Olowookere The Nigerian Exchange (NGX) Limited quickly returned to the green territory after chalking up 0.43 per cent on Tuesday as a result of buying activities in some financial and industrial goods equities. The high demand for some large-cap stocks at the exchange influenced the rebound recorded during the session, ahead of the forthcoming earnings season. Business Post reports that the industrial goods index appreciated by 1.94 per cent, the banking space grew by 1.45 per cent, and the consumer goods sector improved by 0.08 per cent, while the insurance space depreciated by 0.17 per cent, with the

Image
06-December-2023

NNPC Makes Changes to Crude Cargoes Pricing

By Adedapo Adesanya The Nigerian National Petroleum Company (NNPC) Limited will alter how its crude cargoes are priced from January 2024. According to a new circular, the state oil company will start pricing its supplies against the monthly average of Dated Brent, the physical crude benchmark, raising worries that the nation’s barrels may become more risky. Prior to this latest move, Nigeria prices its crude cargoes based on Dated Brent’s average settlement in the five days after loading. NNPC plans to stick with the initial nominated loading dates for pricing purposes, according to the circular. Bloomberg reported that traders said

Image
05-December-2023

Apprehension as Prices of Medication Drugs in Nigeria Surge by Over 1,000%

 By Adedapo Adesanya A new report from SB Morgen Intelligence has shown that prices of drugs have skyrocketed by as much as 1,000 per cent in the last four years, raising worries about Nigerians being able to treat themselves using orthodox methods. In the report Paying the Price on Health, the firm analysed the impacts of the Nigerian economy and foreign exchange crisis on the prices of essential medicines in the country. It was found that between 2019 and 2023, there were massive surges across four broad categories of Antimalarial, Antibiotics, Painkillers and Common Cold medicines. The report indicates that antibiotics

Image
05-December-2023

Board Chooses Onaivi to Head mediaReach OMD Nigeria

By Modupe Gbadeyanka From January 1, 2024, Mr Stephen Onaivi will take charge of mediaReach OMD Nigeria as the new Managing Director following the approval of his appointment by the board of the organisation. He was chosen for the position after working as the MD of OMD Ghana, where he contributed to developing a multi-disciplinary, forward-looking media and advertising industry and serviced an array of national, multinational, and regional clients. In his new role, Mr Onaivi will drive the OMD brand across West and Central Africa to enhance client value and ensure the seamless integration of OMD values, technology, and

Image
05-December-2023

Tanzanian Sensation Abigail Chams Joins Spotify’s EQUAL Africa as December’s Artist Ambassador

Afro-pop songstress Abigail Chams (real name Abigail Chamungwana) continues to collect accolades. Following her nomination in 2022 for the Emerging Artist award at the Tanzania Music Award, she closes 2023 as the Spotify EQUAL Africa ambassador for the month of December. The prodigiously talented Abigail, or Abby, as she is often referred to, is a multilingual singer who performs in Swahili, French and English. She is also a multi-instrumentalist who plays five musical instruments, the violin, piano, guitar, flute and drums. The Nani hitmaker was born into a family with a musical heritage where her grandfather directed an orchestra and