Economy
Oil Jumps on Weaker Dollar, Drop in US Crude Stockpiles
By Adedapo Adesanya
The prices of oil increased on Wednesday for a second day, rebounding from recent losses as the US Dollar eased off recent gains and fuel inventory figures dropped.
Brent crude futures improved by $3.05 or 3.5 per cent to $89.32 per barrel, and the US West Texas Intermediate (WTI) crude futures rose by $3.65 or 4.7 per cent to $82.15 a barrel.
The US Dollar hit a fresh two-decade peak against a basket of currencies on Wednesday before pulling back.
A strong greenback reduces demand for oil by making it more expensive for buyers using other currencies. The Dollar index was down 0.9 per cent.
US inventory figures showed consumer demand rebounded, though refining product supplied remained 3 per cent lower over the last four weeks than a year ago.
On Wednesday, the Energy Information Administration reported a crude oil inventory draw of 215,000 barrels for the week to September 23. The previous week has seen a 1.1-million-barrel build on inventories.
The surprise draw Wednesday came after the American Petroleum Institute (API) had estimated a 4.15-million-barrel build for the week to September 23, catching the market off guard.
Meanwhile, gasoline inventories declined by 2.4 million barrels and distillate inventories by 2.9 million barrels, as refining activity declined following several outages.
Also contributing to the surge in oil prices was the 11 per cent of output shuttered in the Gulf of Mexico as Hurricane Ian made its way toward the Florida coast.
Goldman Sachs cut its 2023 oil price forecast on Tuesday due to expectations of weaker demand and a stronger US Dollar but said global supply disappointments only reinforced its long-term bullish outlook.
Oil prices have been on the slide in the past few days as aggressive US Federal Reserve policy sent the Dollar soaring. However, prices have started reversing the trend prompted by the shutdown of offshore production in the Gulf of Mexico ahead of Hurricane Ian.
Expectations that the Organisation of the Petroleum Exporting Countries and allies (OPEC+) will agree to oil production cuts at its next meeting next week also served to lend some support to oil prices in the past few days.
OPEC’s latest production figures showed the total was 3.58 million barrels per day below targets; Russia’s exports are seen dropping by 2.4 million barrels per day next year, and US producers are staying cautious about production growth.
On the bearish side, a recession could offset much of the bullish potential, and analysts see the chances of a recession in the US at between 45 per cent for the next 12 months and 55 per cent for the next 24 months.
By Aduragbemi Omiyale
Nigeria slightly surpassed its quota set by the Organisation of the Petroleum Exporting Countries (OPEC) in July 2026.
In the month under review, the country produced about 1.57 million barrels of crude oil per day.
It was the third consecutive month Africa’s largest oil-producing nation was meeting its monthly quota, set to stabilise the price of the commodity on the global market by the oil cartel.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday showed that the 1.5 million barrels per day ceiling for Nigeria was surpassed last month.
The agency disclosed in a statement today that the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate, bringing the combined daily production to 1.67mbpd.
In the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.
Although Nigeria met its OPEC quota in the month of July, the statistics show that on a month-on-month basis, production fell by 4 per cent.
This was attributed to the decline in production due to operational challenges experienced at the Erha and Akpo fields, which impacted crude oil output during the period under review.
These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures aimed at maintaining production efficiency and minimising the impact of operational constraints, NUPRC stated.
By Aduragbemi Omiyale
The over 9 billion shares of Lasaco Assurance Plc issued to shareholders of the company via a rights issue have been listed on the Nigerian Exchange (NGX) Limited.
The equities were brought to Customs Street on Wednesday by the organisation, increasing its total issued and fully paid-up share capital.
Lasaco Assurance, which scaled the recapitalisation hurdle of the National Insurance Commission (NAICOM) in July 2026, raised fresh capital from the capital market to shore up its capital base.
The underwriting firm got about N18.5 billion from the rights issue, which involved the issuance of 9,236,321,546 ordinary shares at a unit price of N2.00.
The exercise was on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
Confirming the listing of the additional stocks of Lasaco Assurance today, the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, announced in a circular that, “Trading licence holders are hereby notified that an additional 9,236,321,546 ordinary shares of 50 Kobo each of Lasaco Assurance Plc were today, Wednesday, August 12, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 9,236,321,546 ordinary shares of 50 Kobo each at N2.00 per share on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
“With the listing of the additional 9,236,321,546 ordinary shares, the total issued and fully paid-up share capital of Lasaco Assurance Plc has now increased from 11,083,585,855 to 20,319,907,401 ordinary shares of 50 Kobo each.”
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has said the successful recapitalisation of the insurance industry will strengthen the sector’s ability to support financial stability and economic growth.
NIA Chairman, Mrs Ebelechukwu Nwachukwu, said a well-capitalised insurance industry would be better positioned to meet its obligations promptly, underwrite complex and large-scale risks and serve as a dependable pillar of the Nigerian economy.
She made the remarks while commending the National Insurance Commission (NAICOM) for its structured implementation of the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mrs Nwachukwu said NAICOM’s clear guidelines, systematic verification process, defined timelines and rigorous supervision had provided operators with a credible framework for navigating the recapitalisation exercise.
She described the outcome as a major milestone for the industry and congratulated the 43 insurance and reinsurance companies that have successfully met the prescribed minimum capital requirements.
According to her, the exercise represents “a major win not just for regulators and operators, but for policyholders, investors and the wider Nigerian economy.”
Mrs Nwachukwu said the association would continue to work with NAICOM and other stakeholders to consolidate the gains of the exercise, with emphasis on sustainable industry growth, stronger market conduct and improved consumer confidence.
The official also expressed solidarity with the eight companies still undergoing final verification and regulatory review, urging them to remain confident as NAICOM completes the process within the 14-day review period.
The NIA chairman assured policyholders and the wider business community that the insurance industry would emerge from the recapitalisation exercise stronger, more resilient and better positioned to contribute to Nigeria’s economic development.
