Oil Market Drops 1% as US May Ease Sanctions on Venezuela

Image

By Adedapo Adesanya

The oil market fell by one per cent on Monday after expectations rose that the United States could ease sanctions on Venezuelan crude exports.

Venezuela, a member of the Organisation of the Petroleum Exporting Countries (OPEC) could begin to heave a sigh of relief as government and opposition are set to return to political negotiations this week after nearly a year.

This development weakened Brent crude by 1.4 per cent or $1.24 during the session to $89.65 a barrel, as the US West Texas Intermediate (WTI) crude dropped 1.2 per cent or $1.03 to finish at $86.66 a barrel.

It was reported that the US reached a preliminary deal to ease sanctions on Venezuela’s oil industry in return for a competitive, monitored presidential election in Venezuela next year.

The initial steps by US President Joe Biden’s administration would involve only limited sanctions relief for now. Much of the far-reaching sanctions programme imposed by the administration of former President Donald Trump in 2019 under a “maximum pressure” policy would remain.

Meanwhile, traders said the Israel-Hamas conflict did not appear to threaten oil supplies in the short term.

Both oil benchmarks had surged last week on fears the conflict in the Middle East could widen, with global benchmark Brent gaining 7.5 per cent in its highest weekly gain since February.

Market analysts said Monday’s falling prices appeared to serve as a breather to take in events in the Middle East as opposed to expected production increases in Venezuela.

In Israel, some estimates put the death toll at around 1,400 since Hamas launched its attack on October 7, while the death toll in Gaza is said to be around 2,750.

On Friday, the Israel Defense Forces (IDF) ordered the evacuation of all civilians from Gaza City, and on Monday, reports said the Israelis were preparing to evacuate citizens near the border with Lebanon.

Although the attack has had no effect on the oil supply so far, the possibility of other players coming into the conflict could drive a surge to the premium.

Russian President Vladimir Putin is set to hold talks with Iran, Israel, Palestinians, Syria, and Egypt.

The US last week imposed the first sanctions on owners of tankers carrying Russian oil priced above the Group of Seven’s price cap of $60 a barrel. This is an effort to close loopholes in the mechanism designed to deprive Russia of revenue for its energy sales, which it believes it is using to fund the aggression on Ukraine.

Share
Related Stories
Image
22-February-2024

Dangote Sugar to Borrow N50bn from Commercial Paper Sales

By Aduragbemi Omiyale The management of Dangote Sugar Refinery Plc is requesting about N50 billion from capital market investors for its short-term working capital and funding requirements. The sugar miller will get the funds from investors through the sale of commercial papers and has promised to repay in about nine months’ time. The CP sales will be conducted under its N150 billion commercial paper issuance programme approved by the regulatory authorities. It is the first series the company is selling this time and it specifically has a tenor of 266 days with a discount rate of 15.92 per cent and

Image
23-February-2024

FAAC Disburses N1.2trn to FG, States, Councils for February Allocation

By Aduragbemi Omiyale About N1.2 trillion, precisely N1.149 trillion, has been disbursed to the federal, state and local councils as their allocation for February 2024. The money was part of the revenue generated by the nation in January 2024. A total of N2.068 trillion was generated last month by Nigeria, but N1.149 trillion was shared, comprising distributable statutory revenue of N463.079 billion, Value Added Tax (VAT) of N391.787 billion, Electronic Money Transfer Levy (EMTL) of N15.922 billion, and Exchange Difference revenue of N279.028 billion. A communiqué issued after the end of the Federation Account Allocation Committee (FAAC) meeting held yesterday

Image
22-February-2024

Crude Oil Jumps as Geopolitical Tensions Persist

By Adedapo Adesanya Crude oil appreciated on Wednesday as geopolitical tensions continued in the Middle East and traders assessed signs of near-term supply tightness. Brent crude was up by 69 cents or 0.8 per cent to $83.03 a barrel while the US West Texas Intermediate (WTI) crude jumped by 87 cents or 1.1 per cent to settle at $77.91 per barrel. Houthi attacks on commercial vessels in the Red Sea and Bab al-Mandab strait have continued to stoke concerns over freight flows through the critical waterway. The Iran-aligned Yemeni Houthis have carried out repeated drone and missile strikes since November in

Image
23-February-2024

Naira Falls at NAFEX, Parallel Market as Govt Battles Speculators

By Adedapo Adesanya Despite the unconventional approaches to ease the free fall of the Naira, its value weakened against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, February 22 by 1.9 per cent or N28.73 to close at N1,571.31/$1 compared with the N1,542.58/$1 it was transacted in the midweek session. The domestic currency suffered the loss despite the supply of foreign exchange (FX) improving by 11.7 per cent or $20.11 million to $192.25 million from Wednesday’s $172.14 million. However, the local currency appreciated against the Pound Sterling in the official market yesterday by N142.83

More Stories
Image
26-April-2018

N805m Fraud: Court Remands Senator Nwaoboshi in Prison

By Dipo Olowookere Justice Mohammed Idris of the Federal High Court in Ikoyi, Lagos on Wednesday ordered Senator Peter Nwaoboshi to be remanded in Ikoyi prisons and adjourned the case against him to Friday, April 27, 2018 for ruling on bail application. The lawmaker was arraigned yesterday by the Economic and Financial Crimes Commission (EFCC) on a two-count charge bordering on money laundering and fraud to the tune of N805million. He was charged alongside two companies namely : Golden Touch Construction Project Limited and Suiming Electrical Limited. One of the counts reads: “That you, Peter Nwaoboshi and Golden Touch Construction

Image
10-September-2021

Lagos to Reform Health Sector with Medical Park

By Sodeinde Temidayo David The Lagos State Government has disclosed that it plans to set up a medical park along Awolowo Road, Ikoyi, as part of initiatives to reform the health sector in the state and build facilities that meet global standards. It was stated that the facility will cover 2,175 hectares of land in the area and would be executed by the Office of Public-Private Partnerships (OPPP) in conjunction with the Lagos Ministry of Health. The Director-General of the OPPP, Mr Ope George, said the identified portion of land used to house the School of Nursing but would be

Image
02-August-2019

PHOTOS: Fidelity SME Funding Connect Gathers Momentum

By Adedapo Adesanya Organisers of the Fidelity SME Funding Connect are already dotting the i’s and dotting the t’s as the event is getting closer by the day. On Thursday, August 1, 2019, the team was at the Fidelity SME Radio Forum on Inspiration 92.3 FM, Lagos to create publicity for the programme, which aims to provide an opportunity for the bank to meet with players in the Small and Medium Enterprises (SMEs) to discuss funding. Present during the show were the Chief Operations and Information Officer, Fidelity Bank Plc., Gbolahan Joshua; Chief Economist, Development Bank of Nigeria (DBN), Joseph

Image
11-September-2023

SERAP Urges Governors to Release N2bn Palliatives Spending Details

By Adedapo Adesanya  The Socio-Economic Rights and Accountability Project (SERAP) has given the 36 state governors a week ultimatum to disclose details of spending on the N2 billion palliative received from the federal government a few weeks ago. In August, the federal government announced a N5 billion palliative package for each state of the federation, including the Federal Capital Territory (FCT), to cushion the effect of the removal of the fuel subsidy. However, the Minister of Finance, Mr Wale Edun, said the FG had released only N2 billion from the N5 billion loan it offered to each state as a palliative to

Image
09-May-2019

Ikeja Electric Explains How to Get Prepaid Metres via MAP

By Modupe Gbadeyanka As part of efforts to close the metering gap in the country, the federal government, through the Nigerian Electricity Regulatory Commission (NERC), came up with the Meter Asset Providers (MAPs). This platform gives third-party companies licenced by the government to provide metres to customers of electricity in the country, and the scheme has since commenced on May 1, 2019. One of the leading electricity distribution firms, Ikeja Electric, embraced the MAPs so as to serve its customers better and more efficiently. The company, in its efforts to make the process of obtaining a prepaid metre hassle-free for

Image
18-October-2021

Nigeria’s FX Buffer Now $379.7m Shy of $40bn

By Ashemiriogwa Emmanuel The total amount in Nigeria’s external reserves went up by 3.8 per cent or about $1.4 billion in one week to $39.6 billion from $38.2 billion in the previous week. With this development, the nation’s foreign exchange (FX) buffer is now about $379.7 million away from hitting the $40 billion threshold being projected to reach before the end of October 2021. According to data sourced by Business Post from the Central Bank of Nigeria (CBN), the FX reserves of the country increased by $202.6 million from the $38.2 billion recorded on Thursday, October 7 to $38.4 billion

Image
12-March-2022

Zenith Bank: Justice Abike-Fadipe Expresses Shock, Anger over Fake Story

By Modupe Gbadeyanka Justice Olubunmi Abike-Fadipe of the Ikeja Special Offences Court, Lagos has expressed shock and anger over the misinterpretation of judgement she recently delivered involving Zenith Bank Plc. The respected legal practitioner said she was taken aback by the reports by some online new platforms (Business Post not included) over the issue. However, she has promised to go after those behind the reports, releasing the certified true copy (CTC) of the ruling. It was reported that the judge accused Zenith Bank of bribing both the judges and lawyers for 11 years to pervert justice while delivering a judgment

Image
23-August-2019

SEC Approves NSE Rulebook on Derivatives Market

By Adedapo Adesanya The Nigerian Stock Exchange (NSE) has revealed that its rulebook on derivatives market has been approved by the Securities and Exchange Commission (SEC). A statement from the agency said this authorisation was received on Monday, August 19, 2019. Revealing the timeline of action, the stock exchange body said the draft rules were presented to the Rules and Adjudication Committee of Council at the RAC meeting of November 10, 2017, and approved for exposure to stakeholders for comments. The NSE added that the draft rules were exposed for stakeholders’ comments from December 2017 to January 2018, after which

Ad
Ad
Recent Stories
Image
23-February-2024

Applications Open for AIG Public Leaders Programme

By Aduragbemi Omiyale Eligible African public servants have been urged to submit their applications for the AIG Public Leaders Programme Cohort 4 before Tuesday, April 30, 2024. This call for entries was made by Aig-Imoukhuede Foundation and the applications are to be filed through www.aigimoukhuedefoundation.org/leaders-programme, a statement disclosed. Applicants must be working in the public sector in Africa, with a minimum of seven years of active service, at grade levels 12-17, and aged between 35-50 years at the time of application. The AIG Public Leaders Programme is tailored for senior public leaders and delivered in partnership with the Blavatnik School

Image
23-February-2024

Okpe Leaders Want Completion of Sapele Polytechnic, University in Orerokpe

By Henry Ovie The Delta State Governor, Mr Sheriff Oborevwori, has been tasked to make efforts to complete the Sapele Polytechnic, which was started by the administration of Mr Emmanuel Uduaghan. This call was made by some prominent leaders from the Okpe kingdom, who said the completion of the school and the establishment of a university in Orerokpe would assuage, “to some extent,” the people of the areas, who they said have been “historically neglected.” On Thursday, the leaders held a crucial meeting of the National Executive Council (NEC) of the Okpe Union worldwide. They commended Mr Oborevwori for responding

Image
23-February-2024

HabariPay Take-on-Squad Hackathon 1.0 Produces Three Winners

By Modupe Gbadeyanka Three winners have emerged in the inaugural Take-on-Squad Hackathon 1.0 coding event organised by HabariPay Limited after intense collaboration, innovation, and problem-solving at the GTCO Training Complex, Tayo’s Plaza, Abeokuta, Ogun State, from January 18 to 20, 2024. Business Post reports that the three winning teams are Team Within, Team X, and Team Storepoint. Each team was selected based on real-world applicability, technical creativity, user experience, and teamwork. Team Storepoint, represented by Haruna Faruk and Ladipo Samuel from the University of Lagos, secured third position and a prize of N1 million. Their winning solution, Storepoint, facilitates quick

Image
23-February-2024

Group Mourns OAU’s Veterinary Technologist Olabode Olawuyi

By Modupe Gbadeyanka The Nigeria Biodiversity Conservation Alliance (NBCA) has expressed sadness over the death of the Veterinary Technologist of the Obafemi Awolowo University, Ile-Ife, Osun State, Mr Olabode Olawuyi, a few days ago. Mr Olawuyi was fatally mauled by a lion at the Zoological Garden of the institution. In a statement signed by the National President of the Nigerian Association of Zoological Gardens and Wildlife Parks (NAZAP), Mr Dipo Bali, the group said the deceased was a man who was dedicated to his job and the organisations he belonged to in his lifetime. Mr Olawuyi, apart from being a

Image
23-February-2024

NUPENG Seeks EFCC Support to Tackle Illegal Oil Bunkering

By Adedapo Adesanya Following its fight against foreign exchange speculators and hoarders, the National Union of Petroleum and Natural Gas Workers (NUPENG) has sought the collaboration of the Economic and Financial Crimes Commission (EFCC) in the fight against illegal oil bunkering in the country. The collaboration was sought when the National President of NUPENG, Mr Williams Akporeha, led members of his executive council to the corporate headquarters of the anti-graft agency on a courtesy visit. Mr Akporeha mentioned the challenges involved in the movement of petroleum products across the country and appealed to the EFCC to always come to the

Image
23-February-2024

SON Launches Facility to Test Quality of Generators, Transformers

By Adedapo Adesanya The Standards Organisation of Nigeria (SON) has inaugurated a facility to test generators and power transformers sold in the Nigerian electricity market. Speaking at the inauguration of SON Mobile Generators Testing Laboratory and Mobile Transformer Equipment on Thursday, the Director-General of the agency, Mr Ifeanyi Okeke, said it was no longer business as usual for assemblers and importers of these products. He said it was important for these products to meet the quality benchmarks, stressing that buyers must have value for their money. According to him, all information supplied on generators and transformers will be verified and

Image
23-February-2024

Port Harcourt Refinery to be Fully Operational Soon—FG

By Adedapo Adesanya  The federal government has disclosed that the Port Harcourt Refinery should become operational very soon as it has attained 80 per cent completion. The Minister of State for Labour and Employment, Mrs Nkeiruka Onyejeocha, during a tour of the facility, disclosed that the refinery would produce two million litres of Premium Motor Spirit, otherwise known as petrol, and 2.2 million litres of diesel per day upon resuming operations. In a statement by the Director of Press and Public Relations in the Federal Ministry, Mr Olajide Oshundun, it was further stated that the old plant should produce 54,000

Image
23-February-2024

Nigeria Moves to Crash Cooking Gas Price

 By Adedapo Adesanya Nigeria is considering taking a major step aimed at crashing the price of Liquefied Petroleum Gas (LPG), also known as cooking gas, to ease the sufferings of its citizens. The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo, speaking at the opening of its Internal Stakeholders’ Workshop on Thursday in Abuja, disclosed that the government would most likely ban the exportation of the commodity to keep the price lower than its current level. Currently, prices range between N1,300 per kg to N1,400 per kg. “All LPG produced within the country will have to be domesticated and

Image
23-February-2024

How MultiChoice Empowers Nigerian Youth Through Creative Investment

As global populations age, Africa remains a bastion of youthful promise, with around 70% of the continent’s population below the age of 30. This youthful demographic can be an asset – but only if it is developed, by empowering young people through training, and by giving them a stake in the growth of their countries’ economies. Helping to develop young people’s abilities and expanding the pool of skills is also in the interests of industry and big business. Over the years, the Federal government of Nigeria embarked on youth empowerment initiatives to harness the skills and energy of Nigerian youths

Image
23-February-2024

Eva Adelaja Girls’ At 60: Old Students Donate to Orphanage, Thrill Students

By Adedapo Adesanya It has been an eventful celebration at the ongoing 6oth Anniversary of Eva Adelaja Girls’ Secondary Grammar School, Bariga, Lagos. The event was planned to celebrate the institution established by the late educator, Mrs Evangeline Adebayo Adelaja, in 1964. Particular resplendent in this celebration are the alumni of the school, the Eva Adelaja Girls’ Secondary Grammar School Old Girls’ Association, which have been on the ground to ensure that the planned activities go smoothly. The event, which kicked off with the Praise Day and Community Hymn Singing held at Chapel of Christ the Light in Alausa, Ikeja,