Oil Prices Dip to Lowest Levels Since February over Demand Worries

Image

By Adedapo Adesanya

Oil prices dipped further on Thursday to their lowest levels before Russia’s February invasion of Ukraine over the possibility of an economic recession later this year that could hit energy demand.

Brent crude futures settled down by $2.66 or 2.75 per cent to $94.12 per barrel, and the United States West Texas Intermediate (WTI) crude futures settled downwards by $2.34 or 2.12 per cent to $88.54 a barrel.

Crude oil had surged to well over $120 a barrel earlier in the year following the COVID-19 pandemic which coincided with supply disruptions stemming from sanctions on major producer Russia over its invasion of Ukraine.

However, with recession fears gripping the market, those gains have been swiped off.

The Bank of England (BoE) raised interest rates on Thursday and warned about recession risks.

This is further affected after the Energy Information Administration (EIA) in one of the world’s largest consumers, the US, reported a large build in crude oil inventories of 4.5 million barrels for the week to July 29.

The main bearish signal for crude appeared to come from the data showing an unexpected and sizeable build in US commercial crude inventories and a plunge in fuel demand for the week ended July 29.

Analysts noted that the US inventory build and the growing concerns about oil demand in slowing economies were bigger drivers of oil prices than Wednesday’s decision of OPEC+ to raise the group’s targeted collective oil production by 100,000 barrels per day in September.

OPEC+ agreement on Wednesday to raise its output target equivalent to 0.1 per cent of global demand, was viewed by some analysts as bearish for the market.

The hike is one of the smallest since OPEC quotas were introduced in 1982, data from the cartel showed.

OPEC heavyweights Saudi Arabia and the UAE are also ready to deliver a “significant increase” in oil output should the world face a severe supply crisis this winter.

The demand outlook, however, remains clouded by increasing worries about an economic slump in the US and Europe, debt distress in emerging market economies, and a strict zero COVID-19 policy in China, the world’s largest oil importer.

Share
Related Stories
Image
03-March-2024

Nigeria Pays N1trn Monthly Subsidy to Keep Petrol at N650/Litre

By Aduragbemi Omiyale Despite the federal government claiming it has stopped the payment of subsidies on premium motor spirit (PMS), well-known as petrol, more people are countering this. Recall that a few weeks ago, the International Monetary Fund (IMF) said the government had returned fuel subsidies through the backdoor and kept Nigerians in the dark about this. It then advised the government of President Bola Tinubu, which announced an end to it on May 29, 2023, to completely stop the payment as it was increasing his administration’s fiscal deficit. The global lender, in a report released last month, said the

Image
04-March-2024

NGX Group Declares 75 Kobo Final Dividend Amid 57.4% Surge in FY’23 Earnings

By Aduragbemi Omiyale A final dividend of N1.5 billion, amounting to 75 Kobo per share has been declared by the board of the Nigerian Exchange (NGX) Group Plc for the 2023 financial year. This brings to N1 the total dividend to be paid by the company after paying 25 Kobo (N495.5 million) as interim dividend at mid-year. In its audited financial statements for the year ended December 31, 2023, the NGX Group said its gross earnings increased by 57.4 per cent to N11.8 billion in FY 2023 from N7.5 billion in FY 2022 because its performances in core revenue and

Image
04-March-2024

Meristem Analysts Value Transcorp Power at N2.3trn

By Aduragbemi Omiyale Analysts at Meristem Research have put the value of Transcorp Power Plc at about N2.3 trillion (precisely N2.290 trillion), higher than its current value of N1.8 trillion. The power-generating firm joins the Nigerian Exchange (NGX) Limited today, Monday, March 4, 2024, by introduction. It will be the second GenCo (Generating Company) to list its shares on the domestic stock exchange. The first was Geregu Power Plc owned by Mr Femi Otedola, which joined in October 2022. Transcorp Power, a subsidiary of Transcorp Plc, a firm controlled by Mr Tony Elumelu, listed today on the bourse about 7,500,000,000

Image
05-March-2024

Petrol, Electricity Subsidies Will Gulp 3% of Nigeria’s GDP—IMF

By Adedapo Adesanya The International Monetary Fund (IMF) has warned the Nigerian government the payment of subsidies on petrol and electricity could take up to 3 per cent of the country’s gross domestic product (GDP) in 2024. The IMF stated this in a statement released on Monday on the completion of its 2024 Article IV Mission to Nigeria. The lender said that the recent improvements in revenue collection and oil production are encouraging, as “low revenue mobilization constrains the government’s ability to respond to shocks and to promote long-term development.” But it emphasised that, “The capping of fuel pump prices

More Stories
Image
01-November-2021

Odili’s House Invasion: Sack Malami Now, CNPP Tells Buhari

By Modupe Gbadeyanka An umbrella association of all registered political parties and political associations in the county, the Conference of Nigeria Political Parties (CNPP), has demanded the immediate sacking of the Attorney General of the Federation (AGF) and Minister of Justice, Mr Abubakar Malami. The group wants Mr Malami removed over what it described as the unwarranted invasion of the house of the second most senior Justice of the Supreme Court, Justice Mary Odili, by security operatives last week. A few days ago, the home of Mrs Odili, wife of the former Governor of Rivers State, Mr Peter Odili, was

Image
12-August-2017

Dotun Oladipo Emerges GOCOP President

By Dipo Olowookere Renowned journalist and former Sunday Editor of the Nigerian Compass, Mr Dotun Oladipo, has emerged President of the Guild of Corporate Online Publishers (GOCOP). Mr Oladipo was elected President of the Guild after a poll held on Wednesday at the Adna Hotel, GRA, Ikeja, Lagos. He and other newly elected members of the executives of GOCOP were inaugurated the next day at the 1st annual conference of the Guild held at the Renaissance Hotel, also in Ikeja, Lagos. Mr Oladipo publishes the popular online news platform called The Eagle Online. He will lead the group for the

Image
28-September-2016

Nigeria’s Foreign Reserves Slumps To $24b

By Modupe Gbadeyanka Minister of Budget and National Planning, Mr Udoma Udo Udoma, has disclosed that Nigeria’s foreign reserves have dropped to $24.74 in the third quarter of 2016 from $26.51 billion it was in the second quarter of the same year. According to him, this was because Nigeria had revenue and foreign currency concentration problems. Speaking at the 57th annual conference of Nigeria Economic Society (NES) in Abuja on Tuesday, the Minister further explained that the revenue and foreign currency concentration problems were caused by the destruction of four strategic pipeline terminals, which made it impossible for the Federal

Image
23-October-2017

Asian Shares Rise on US Senate Budget Blueprint Approval

By Investors Hub Asian stocks ended broadly higher on Monday after the U.S. Senate approved a budget blueprint that paves the way for tax cuts and Japanese Prime Minister Shinzo Abe’s ruling Liberal Democratic Party scored a big win in the nationwide parliamentary election Sunday, paving the way for a continuation of loose monetary policy. Chinese shares finished marginally higher as home-price growth data disappointed investors and markets awaited cues from a key political congress. Hong Kong’s Hang Seng index was down 181 points or 0.64 percent at 28,305 in late trade. Japanese shares rallied as the dollar hit a

Image
18-November-2019

Asian Stock Markets Rise as China Cuts Interest Rate

By Investors Hub Asian stock markets ended mostly higher on Monday as investors awaited further progress on a U.S.-China trade deal, while China’s central bank surprised markets by cutting a key interest rate for the first time since 2015. On Saturday, Chinese state media said that the U.S. and China had ?constructive discussions? regarding a phase one trade deal in a high-level phone call. Chinese shares closed higher after the People’s Bank of China unexpectedly lowered the rate on seven-day reverse repurchase agreements by five basis points to 2.50 percent. The move stoked hopes of more stimulus measures to revive

Image
20-October-2017

Adeosun Not Too Competent as Finance Minister—CACOL

**Urges Buhari to Sack Her By Modupe Gbadeyanka The Centre for Anti-Corruption and Open Leadership (CACOL) has appealed to President Muhammadu Buhari to urgently remove Mrs Kemi Adeosun as Minister of Finance. The organisation, at a press briefing in Lagos yesterday, said the Minister has shown not to be capable of leading the Nigerian economy to greatness. Executive Director of CACOL, Mr Debo Adeniran, said at the media conference that Mrs Adeosun has been everything but impressive and constantly appears to be confused on policies and in-depth understanding of economic management. Mr Adeniran said, “The economic terrain under her watch

Image
04-August-2018

Okomu Oil, Int’l Breweries Lead Stock Market to 0.59% Fall

By Modupe Gbadeyanka Heavy losses recorded on Friday by Okomu Oil, International Breweries and 26 other equities on the trading floor of the Nigerian Stock Exchange (NSE) left the market down by 0.59 percent. Business Post reports that profit-taking activities by investors at the equity market contributed to the decline, which sank the Year-to-Date (YtD) returns deeper to -4.56 percent. Okomu Oil, which led the losers’ table on Friday, went down by N5 at the close of business to finish at N76 per share. International Breweries, which followed, lost N2.90k to settle at N30.50k per share, while Forte Oil depreciated

Image
11-August-2022

Market Rebounds by 1.47% on Buying Interest in Dangote Cement, Others

By Dipo Olowookere Buying interest in Dangote Cement and 19 others suppressed the losses reported by Lafarge Africa and nine others on Wednesday, leaving the Nigerian Exchange (NGX) Limited closing higher by 1.47 per cent at the close of business. The demand for equities rose yesterday, leading to an increase in the volume of trades by 98.58 per cent to 279.2 million shares from 140.6 million shares as the value of transactions increased by 30.14 per cent to N2.1 billion from N1.6 billion, while the number of deals carried out depreciated by 8.19 per cent to 3,576 deals from the

Ad
Ad
Recent Stories
Image
05-March-2024

Ghana’s Central Bank Suspends FX Trading Licence of First Bank

By Aduragbemi Omiyale The foreign exchange (FX) trading licence of FBN Bank Ghana Limited, a subsidiary of FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, has been suspended by the Bank of Ghana. A statement issued on Monday by Ghana’s central bank disclosed that its action was because of the bank’s fraudulent documentation in its forex operations. The country’s banking sector regulator also suspended the FX trading licence of GTBank Ghana Limited, a subsidiary of Nigeria’s GTCO Plc, the parent company of GTBank Limited for the same offence. The notice from the central bank disclosed that

Image
05-March-2024

Binance Exits Nigeria, to Convert Naira Balances to UDST

By Adedapo Adesanya Binance will discontinue all services for Nigeria’s fiat currency, the Naira, following the ongoing regulatory onslaught on the firm by the Nigerian authorities. The crypto exchange will automatically convert Naira balances to US Dollar Tether (USDT) from March 8 but will cease support for deposits after today. Withdrawals will become unsupported after March 8 by 12 noon Nigerian time, a statement sighted by Business Post confirmed. The conversion rate for automatic conversions will be pegged at N1,515.13 to 1 USDT, according to an announcement from the website. Other features, including Binance Convert, Binance P2P, the exchange’s Auto

Image
05-March-2024

Petrol, Electricity Subsidies Will Gulp 3% of Nigeria’s GDP—IMF

By Adedapo Adesanya The International Monetary Fund (IMF) has warned the Nigerian government the payment of subsidies on petrol and electricity could take up to 3 per cent of the country’s gross domestic product (GDP) in 2024. The IMF stated this in a statement released on Monday on the completion of its 2024 Article IV Mission to Nigeria. The lender said that the recent improvements in revenue collection and oil production are encouraging, as “low revenue mobilization constrains the government’s ability to respond to shocks and to promote long-term development.” But it emphasised that, “The capping of fuel pump prices

Image
05-March-2024

Deel Buys 100% Stake in African HR Solution Company PaySpace

By Adedapo Adesanya Global human resources company, Deel, has announced the acquisition of African-based payroll and HR solution company, PaySpace, for an undisclosed amount, in one of its largest acquisitions to date. By acquiring PaySpace, Deel will become the first global payroll and Employer of Record (EOR) with its full-stack payroll engine localized in 50 countries and integrated into its offering. PaySpace’s proprietary technology is a cloud-native framework built as a single engine. Its platform allows for easy configuration to add additional countries through localization. These localization projects normally take years to complete, but with PaySpace’s innovative technology, it can

Image
05-March-2024

Emotions Pour as Dignitaries Eulogise Late Herbert Wigwe

By Adedapo Adesanya  It was an emotional rollercoaster at the tribute event held on Monday night to celebrate the late group chief executive of Access Holdings Plc, Mr Herbert Wigwe. Dignitaries from government, corporate organisations, and royalty paid tribute to the late titan who died alongside his wife, son, and a former group chairman of the Nigerian Exchange (NGX) Group Plc, Mr Abimbola Ogunbajo, on February 9 in the United States. The event which was monitored by Business Post was divided into six segments – Young Hebert, the banker, the entrepreneur, the CEO, the builder and the ambassador. These personalities

Image
05-March-2024

Nigeria’s Economic Outlook is Challenging—IMF Declares

By Aduragbemi Omiyale The International Monetary Fund (IMF) has alerted that tough times await Nigerians, though it retained its gross domestic product (GDP) growth forecast for 2024 at 3.2 per cent. In a statement on the conclusion of the IMF Staff 2024 Article IV Mission to Nigeria, the global lender said the administration of President Bola Tinubu “inherited a difficult economic situation marked by low growth, low revenue collection, accelerating inflation, and external imbalances built up over years.” However, it praised the government’s approval of an effective and well-targeted social protection system, including the release of grains, seeds, and fertilizers,

Image
05-March-2024

Banks Involved in 70% of Economic Crimes in Nigeria—EFCC

By Aduragbemi Omiyale Nearly 70 per cent of financial crimes in Nigeria have the involvement of banks, the Economic and Financial Crimes Commission (EFCC) has claimed. “Broadly speaking, banking fraud in Nigeria is both inside and outside related. “The inside related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery and several other kinds of unhealthy and criminal practices,” the chairman of EFCC, Mr Ola Olukoyede, said while speaking at the Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria held in Abuja. The EFCC boss, represented by the agency’s Director

Image
05-March-2024

Nigerian Air Force Airstrikes Hit Two Illegal Refineries in Rivers

By Adedapo Adesanya The Nigerian Air Force component of Operation Delta Safe, through airstrikes destroyed two illegal oil refining sites in Krakama and Temakiri, Degema Local Government Area of Rivers State, in continuation of efforts to stamp out the activities of crude oil thieves and oil pipeline vandals in the country. This was disclosed by the Director of Public Relations and Information, Nigerian Air Force, Mr Edward Gabkwet, an Air Vice Marshal, saying the illegal oil refining sites were observed actively operating with Cotonou boats sighted nearby with the probable intent to illegally siphon crude oil from the sites. Mr

Image
05-March-2024

NGX Remains Catalyst for Economic Growth—Chiemeka

By Aduragbemi Omiyale The acting chief executive of the Nigerian Exchange (NGX) Limited, Mr Jude Chiemeka, has described the bourse as a catalyst for economic growth and development. He said this at the listing of 7.5 billion ordinary shares of Transcorp Power Plc at N240 per unit at the exchange on Monday. The energy firm raised the market capitalisation of the trading platform by N1.8 trillion yesterday. According to him, the inclusion of Transcorp Power into the NGX, the first listing of the year, underscored the pivotal role the bourse plays in shaping Nigeria’s economic landscape. He added that NGX

Image
05-March-2024

Dangote Renames Lagos Refinery Road After Herbert Wigwe

By Modupe Gbadeyanka The road to the Dangote Refinery in the Lekki area of Lagos State has been renamed after the late group chief executive of Access Holdings Plc, Mr Herbert Wigwe. This development was announced on Monday night by the owner of the oil facility, Mr Aliko Dangote, during the Celebrating Herbert Wigwe’s Professional Legacy, who said this gesture was to immortalise his friend. The Nigerian billionaire businessman and the richest black man on earth, in an emotional tribute to the late banker, who died in a helicopter crash in the United States on February 9, 2024, along with