Oil Prices Fall Amid Inadequate US Crude Inventories Drop

Image

By Adedapo Adesanya

Oil prices fell on Wednesday as data indicated that crude inventories in the United States fell lesser than what was expected amid worries about the demand that led to a steep selloff earlier in the week.

Brent crude futures dropped 23 cents or 0.55 per cent to $41.53 per barrel while the US West Texas Intermediate (WTI) crude futures shed 28 cents or 0.65 per cent at $39.58 per barrel.

The Energy Information Administration (EIA) data showed that crude inventories in the largest producing nation fell by 1.6 million barrels, less than the forecast of around 4 million barrels.

On Tuesday, the American Petroleum Institute (API), another industry group, reported a build in crude oil inventories of 691,000 barrels for the week ending September 18. Analysts were looking for an inventory draw of 2.256-million barrels.

However, with the drop seen in the official government data from the EIA, it didn’t meet expected figures especially with the renewed worries about an oil glut.

The market continues to come under pressure of COVID-19 infections as countries including India, France and Spain and new restrictions in Britain have renewed worries about demand, just as more supply may come from Libya.

In the North African country, the National Oil Company (NOC) expects oil output to rise to more than a quarter of a million barrels per day by next week.

The NOC said it was restarting exports from the Zueitinia oil terminal after checking the security situation at the port and fields that pipe crude there.

An escalation in the country’s conflict led to a blockade of facilities, which is now easing, although analysts say they don’t expect Libya to reach the 1.2 million barrels per day of production it was pumping previously. It will, however, produce close to 300,000 barrels per day.

This new development poses a problem to the cuts regime of the Organisation of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+).

They face a new challenge as Libya, an OPEC member is exempt from the supply cut, and now aims to boost supply after an easing of the country’s conflict. An oil tanker is expected to load crude at Libya’s Marsa el-Hariga terminal this week, the first since January.

This is proving to be a tough month for crude prices as Brent has declined by nearly 8 per cent while the WTI oil prices have lost 7 per cent.

Share
Related Stories
Image
20-February-2024

Naira Crashes to N1,820/$1 at Black Market as EFCC Goes After FX Traders

By Dipo Olowookere The decision of the government to go after foreign exchange (FX) traders on the streets seems to have backfired as it has badly affected the value of the Naira to the Dollar in the currency market, particularly at the parallel market end of it. Data gathered by Business Post showed that the Nigerian Naira is being exchanged with the US Dollar in the black market at N1,820/$1 at the time of filing this report on Tuesday compared with N1,720/$1 it was traded on Monday, indicating a decline of N100. Yesterday, some operatives of the Economic and Financial

Image
21-February-2024

Oil Prices Slide on Global Demand Worries

By Adedapo Adesanya Oil prices settled lower on Tuesday, with worries about global demand offsetting price support from the Israel-Hamas conflict, causing the Brent futures to lose $1.22 or 1.5 per cent to sell at $82.34 a barrel, as the US West Texas Intermediate (WTI) crude shed $1.30 or 1.4 per cent to trade at $77.04 a barrel. The crude oil market was lower following the quiet trading over the Presidents’ Day holiday in the US and as demand concerns offset ongoing Middle Eastern geopolitical tensions. Shipping has been impacted by escalating attacks on shipping lanes in the Red Sea

Image
21-February-2024

Verod Capital Buys 65% Stake in i-Fitness from CardinalStone

By Aduragbemi Omiyale The popular fitness and gym chain, i-Fitness, now has a new investor and it is Verod Capital Management, a private equity company. Verod Capital has become a major shareholder in i-Fitness, which has branches across the country, including in Lagos and Abuja, courtesy of CardinalStone Capital, another private equity firm. Cardinal Stone divested its 65 per cent stake and this was acquired by Verod Capital in a deal said to be worth about $12 million, according to TechCabal. i-Fitness, valued at $18.5 million, was established in 2015 by Mr Folusho Ogunwale and the organisation has grown to

More Stories
Image
14-August-2020

UK Partners Nigeria to Expand Digital Access to Underserved Communities

By Adedapo Adesanya The United Kingdom has extended a helping hand to the federal government to collaborate on promoting and providing digital access to underprivileged communities in Nigeria. This was made known in the Digital Access Programme, where representatives and stakeholders were hosted including the Federal Ministry of Communications and Digital Economy and the Nigerian Communications Commission (NCC) on Thursday. Serving as the first Nigeria Technical Conference on the Right of Way (RoW), the event was held to further aggregate views from key stakeholders, towards the advancement of policy and regulatory reforms on ROW and issuance of planning permits for

Image
14-December-2023

PENGASSAN Calls for Privatisation of Nigeria’s National Grid

By Adedapo Adesanya The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has charged the federal government to unbundle the country’s electricity national grid, to encourage private sector investments in the sector and improve power supply in the country. This call was made by the National President of PENGASSAN, Mr Festus Osifo, who maintained that power supply remains a critical issue plaguing the country, as reliable and consistent electricity is the lifeline of any growing economy. Mr Osifo, speaking at the National Executive Council meeting of the association in Port Harcourt recently, listed the key challenges in the

Image
10-January-2023

Global Commodity Prices Could Dampen Growth in Nigeria in 2023—World Bank

By Dipo Olowookere The World Bank Group has projected that Nigeria would record economic growth of 2.9 per cent in 2023 amid the headwinds, especially relating to crude oil production hampered by theft, warning that global commodity prices could dampen growth in Nigeria and others in the sub-Saharan African region in the year. In 2022, Nigeria’s economy slowed as a result of aggravated inflation, floods, and crude oil theft. The global lender believes that the effects of these challenges will extend to this year. In a report released on Tuesday, World Bank noted that this year, sub-Saharan Africa would collectively

Image
18-November-2016

America Blasts Nigeria, Police Over Deaths In Kano Clash

By Dipo Olowookere The United States has expressed its deep concerns over the deaths of dozens of Nigerians during clashes between individuals participating in a Shia procession and the Nigerian Police Force in Kano State on November 14, 2016. A statement issued on Friday by the US Department of State said while the matter is still under investigation, it is troubled by the apparent inconsistent response by the police. This is the latest in a series of violent incidents between security forces and members of the Shia Islamic Movement of Nigeria (IMN), some of which have resulted in deaths, destruction

Image
22-January-2024

Seedstars, EU Invest $3.7m in Shamba to Boost Agri Input Distribution

By Adedapo Adesanya Seedstars Africa Ventures and EDFI AgriFI, which is the European Union’s financing initiative responsible for investments in medium, small, and micro agri-enterprises (MSME) in developing countries, have announced a $3.7 million pre-series A investment in Shamba Pride, a pioneering Agri-based company in Kenya, to boost quality agricultural input distribution.  The investment arrangement will see EDFI AgriFI provide a long-term loan of $2 million, to foster sustainable development and economic growth in developing countries.  Seedstars Africa Ventures on its part, committed an additional $1.7 million in equity, reaffirming its support to the company and catalysing investments into the

Image
31-December-2022

Nigeria’s All-Share Index Jumps 1.89% to 51,251.06 Points

By Dipo Olowookere The Nigerian Exchange (NGX) Limited appreciated by 1.89 per cent in the last trading session of 2022 as investors mopped up shares with good fundamentals. This left the market breadth positive at the close of transactions as there were 27 price gainers and 17 price losers, indicating a strong investor sentiment. Caverton and Presco finished the day as the best-performing equities as they rose by 10.00 per cent to settle at 99 Kobo and N137.50, respectively. Airtel Africa grew by 9.88 per cent to N1,635.00, CWG increased its value by 9.78 per cent to N1.01, and Morison

Image
10-December-2021

NGX Sheds 1.77% as Investors Selloff UPDC, Dangote Cement

By Dipo Olowookere The Nigerian Exchange (NGX) Limited depreciated on Thursday by 1.77 per cent on the back of profit-taking in the shares of UPDC, Dangote Cement and 13 others. The duo lost 10.00 per cent each yesterday to close at N9.00 and N252.00 respectively, while Neimeth went down by 6.86 per cent to N1.63, May & Baker dropped 6.46 per cent to N4.20 and Pharma Deko fell by 5.21 per cent to finish at N2.00. It was observed that the market breadth closed positive during the session with 22 price gainers led by Skyway Aviation, which grew by 9.66

Image
20-June-2023

Sanwo-Olu Lauds Positive Impact of Airtel Touching Lives Initiative

By Adedapo Adesanya Governor Babajide Sanwo-Olu of Lagos State has commended Airtel Nigeria for its Airtel Touching Lives initiative, saying the platform has impacted many lives in the state and the country at large. The Governor praised the telco giant at an event held on Sunday evening at Eko Hotels and Suites, Lagos, to premier the seventh season of the programme. Airtel Touching Lives is part of the company’s Corporate Social Responsibility (CSR) projects, aimed at empowering and uplifting communities across the country. The event held at the weekend was attended by a select group of guests, including government officials,

Ad
Ad
Recent Stories
Image
22-February-2024

NASD Unlisted Security Index Depreciates by 0.77%

By Adedapo Adesanya A 0.77 per cent loss was suffered by the NASD Over-the-Counter (OTC) Securities Exchange on Wednesday, February 21 following profit-taking in three stocks. Aradel Holdings Plc went down by N49.50 during the session to close at N2,476.50 per share versus the previous day’s N2,526.00 per share, Central Securities Clearing System (CSCS) Plc depreciated by 37 Kobo to end the day at N19.63 per unit compared with Tueday’s closing price of N20.00 per unit, and FrieslandCampina Wamco Nigeria Plc deflated by 7 Kobo to settle at N74.43 per share, in contrast to the N74.50 per share it traded

Image
22-February-2024

Naira Appreciates at Official Market, Falls at Black Market

By Adedapo Adesanya The Naira appreciated against the United States Dollar in the official market and the and the peer-to-peer (P2P) windows of the foreign exchange (FX) market but depreciated in the parallel market on Wednesday, February 21 as several scare tactics to ease the weakening local currency continues. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the domestic currency gained 0.6 per cent or N8.66 on the greenback to close at N1,542.58/$1 compared with the previous day’s N1,551.24/$1. However, the Naira maintained stability against the Pound Sterling and the Euro in the spot market in the midweek session at

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
22-February-2024

Investors Recover N165bn as FBN Holdings, BUA Cement, Others Gain

By Dipo Olowookere The bulls recaptured the Nigerian Exchange (NGX) Limited on Wednesday after the bears dominated for two straight days as a result of panic selling due to the macroeconomic environment, especially with the poor performance of the Naira in the foreign exchange (FX) market. During the midweek session, the local bourse finished higher by 0.30 per cent on renewed bargain-hunting activities by investors. This raised the market capitalisation of the domestic exchange by N165 billion to N55.464 trillion from N55.299 trillion, as the All-Share Index (ASI) grew by 301.71 points to 101,362.38 points from 101,060.67 points. Business Post

Image
21-February-2024

Tinubu Appoints Kemi Nanna Nandap as Comptroller-General of Immigration

By Modupe Gbadeyanka The Deputy Comptroller-General (DCG) of the Nigeria Immigration Service (NIS), Ms Kemi Nanna Nandap, has been elevated to the post of the Comptroller-General of the agency. This followed her appointment by President Bola Tinubu, according to a statement issued by his spokesman, Mr Ajuri Ngelale, on Wednesday. The presidential aide disclosed in the statement today that the appointment of Ms Nandap will take effect from Friday, March 1, 2024. She is taking over from Mrs Caroline Wura-Ola Adepoju, whose term in office expires on February 29, 2024, the disclosure said. “President Bola Tinubu has approved the appointment

Image
21-February-2024

AFC to Pump $40m Into African Medical Centre of Excellence Abuja

By Adedapo Adesanya  African instrumental infrastructure solutions provider, Africa Finance Corporation (AFC), has signed an equity investment term sheet, pledging up to $40 million towards the construction of an Abuja-based hospital, the African Medical Centre of Excellence (AMCE). The quaternary-level multi-specialty medical institution developed by the African Export-Import Bank (Afreximbank) in collaboration with King’s College Hospital, London, aims to revolutionise healthcare in Africa. Hospitals across West Africa struggle with funding, lack of essential resources, and limited access in rural areas. This flagship facility in Abuja is a key part of Afreximbank’s network of healthcare facilities, actively countering brain drain, reducing

Image
21-February-2024

Oyo Reopens Shri-Balaji After Closure Over Pollution

By Aduragbemi Omiyale The industrial company sealed earlier this month nonconformity and adherence to environmental laws of Oyo State, Shri-Balaji Industries Limited, has been reopened. The facility was unsealed on Wednesday on the directive of the Commissioner for Environment and Natural Resource, Mr Abdulmojeed Mogbonjubola. The company, which engages in the recycling of waste tyres to produce Pyrolysis oil and carbon black and steel wire as by-products, was closed by the state government to protect the lives of residents of the area. A statement made available to Business Post disclosed that for it to be reopened, Shri-Balaji paid a fine

Image
21-February-2024

FG to Restructure, Recapitalise Bank of Agriculture for Better Value

By Adedapo Adesanya The federal government has revealed plans to recapitalise and restructure the Bank of Agriculture (BOA) to bolster Nigeria’s agricultural sector and achieve national food security. This was one of the core revelations made by the Vice President, Mr Kashim Shettima, during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. He said there is a central role that BOA could play in achieving national food security, citing its extensive branch network across all senatorial districts in the country. Mr Shettima, however, expressed concern about the

Image
21-February-2024

Foundation Urges Nigerians to Adopt Waste Management Hierarchy

By Aduragbemi Omiyale A recycling organisation, Turn Plastic Recycling Foundation, has encouraged Nigerians to embrace the waste management hierarchy to make the country a zero-waste society. The Project Manager for the firm, Mr Leo Nwofa, while giving a summary of the project journey in the past two years of the foundation, said to save the planet, people must adopt the system of proper waste disposal for recycling after use. The waste management hierarchy gives top priority to waste prevention, followed by reuse, recycling, recovery and finally disposal. Speaking at an event to mark the second anniversary of Turn Plastic Recycling

Image
21-February-2024

Peter Obi Fumes as CBN Hikes Cargo Clearing Rate to N1,605/$1

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has once again increased the exchange rate for customs cargo clearance by 9 per cent or N133.06 from N1,472.76/$1 to N1,605.82/$1. The new rate, which has already been reflected on the Nigeria Customs Service (NCS) portal, will further dampen the hope of importers, and trigger an increase in the price of imported products like food, fuel, spare parts, and phones, among others. The CBN had recently reduced the exchange rate from N1,515.48/$1 to N1,472.756/$1 after the market eased following some recent policy steps. This review will be the 12th since the