Economy

Oil Prices Recover 2% Amid Improvement in US Economy

Published

6 years ago

26/06/2020

By Adedapo Adesanya

Oil prices recovered some of their previous day’s losses as traders banked on signs of a marginal improvement in the US economy, though rising cases of COVID-19 in some states weighed on gains.

The Brent crude rose by $1.17 or 2.9 percent to trade $41.48 per barrel, while the US West Texas Intermediate (WTI) crude was sold at $38.72 per barrel after appreciating by 71 cents equivalent to 1.87 percent.

At the previous session, major crude prices lost five percent as the US recorded a high inventory of 1.4 million barrels, exceeding analysts’ expectations, the Energy Information Administration (EIA) said, citing rising production.

On Thursday, prices found support on the back of data which showed fewer Americans filed for unemployment benefits last week and orders for key capital goods rebounded in May.

This is especially good as it shows good purchasing power for essentials which include fuel, which interprets but an extension to better demand for crude.

However, the decline in jobless claims was less than analysts expected and other data support economists’ expectations that the US GDP could shrink at as much as a 40 percent annualized rate in the second quarter of the year.

However, analysts believe that prices could be restricted in the coming days by increasing virus cases around the world.

New infections have surged in US states while Australia posted its biggest daily rise in cases in two months. As the virus spikes again in the US and other areas around the world, some governments imposed new restrictions only weeks after lifting shutdowns, even as other areas relaxed them.

Although attention has started shifting away from the Organization of the Petroleum Exporting Countries and its allies known as OPEC+ agreement to extend a global cut of 9.7 million barrels a day to the end of July, investors are waiting to see if the producers can further extend their record cut beyond July.

It is still not clear if OPEC and its allies are willing to extend production cuts into August, but the group at a meeting held last Thursday said it would review its output reductions monthly, with the next technical committee meeting set for July 15.

Analysts also noted that a record rise in global coronavirus cases poses a huge worry for the recovery in fuel demand, which is still making improvement and adjustment.

The economic damage associated with a new round of COVID-19 countermeasures will likely not bear any positive news and will be bad for oil prices.

The record crude supply cut by the cartel and its allies has kept the oil market much stronger than in April when Brent hit a 21-year low below $16 per barrel and US WTI crude turned negative.

Economy

FrieslandCampina Wamco, MRS Oil Buoy NASD Exchange by 0.91%

Published

2 hours ago

04/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange extended its gains by 0.91 per cent on Wednesday, June 3, spurred by three price gainers led by FrieslandCampina Wamco Nigeria Plc, which rose by N13.90 to sell N210.41 per share versus the previous day’s N196.51 per share. MRS Oil appreciated by N10 to N190.00 per unit from N180.00 per unit, and Food Concepts Plc added 5 Kobo to sell at N3.00 per share versus N2.95 per share.

As a result, the market capitalisation increased by N23.91 billion to N2.660 trillion from N2.636 trillion, and the NASD Unlisted Security Index (NSI) gained 39.97 points to finish at 4,446.27 points, in contrast to Tuesday’s 4,406.30 points.

The NASD exchange witnessed three price losers at midweek, led by Nipco Plc, which shrank by N21.30 to close at N325.97 per unit compared with the previous session’s N347.27 per unit, Nitrox Industrial Gases Plc went down by N1.20 to quote at N24.30 per share versus the preceding session’s N25.50 per share, and Central Securities Clearing System (CSCS) Plc weakened to by 69 Kobo to N75.41 per unit from N76.10 per unit.

The volume of trades yesterday significantly improved by 71.5 per cent to 527,221 units from Tuesday’s 307,363 units, as the value of transactions soared by 49.9 per cent to N64.2 million from the preceding session’s N49.9 million, and the number of deals surged by 9.5 per cent to 46 deals from 42 deals.

When trading activities ended for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 64.6 million units exchanged for N4.4 billion.

GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.

Economy

Naira Continues Positive Run, Official Market Rate Now N1,357/$1

Published

3 hours ago

04/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The positive run of the Naira against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) continued on Wednesday, June 3, with the former chalking up N3.79 or 0.28 per cent against the latter, closing at N1,357.26, in contrast to the preceding session’s N1,361.05/$1.

Similarly, the Nigerian currency gained N10.52 against the Pound Sterling in the official market during the session to close at N1,822.67/£1 compared with the previous rate of N1,833.19/£1, and appreciated against the Euro by N9.56 to N1,574.83/€1 from N1,584.39/€1.

Further, at the black market, the Naira improved its value against the greenback at midweek by N5 to trade at N1,375/$1 compared with the N1,380/$1 it was traded a day earlier, and at the GTBank FX counter, it gained N6 to sell for N1,372/$1 versus N1,378/$1.

The boost came as the country’s external reserves continued to gain momentum. A look at the updated data from the Central Bank of Nigeria (CBN) showed that foreign reserves continue to increase with two consecutive inflows in June 2026, settling at $49.876 billion as of Tuesday.

Foreign portfolio investors, exporters and non-bank corporates continue to keep the supply side strong, with the less aggressive FX interventions by the CBN at the official window in recent times helping to ease worries about capital flight.

The apex bank reported that interbank FX turnover declined to $133.731 million across 136 deals, from $169.822 million the previous day.

Meanwhile, the cryptocurrency market remained bearish due to sell-offs triggered by geopolitical uncertainties and the US stock market rally.

Cardano (ADA) dipped by 5.5 per cent to $0.2046, Binance Coin (BNB) slumped by 4.8 per cent to $627.56, Solana (SOL) shrank by 3.9 per cent to $72.99, Ethereum (ETH) depreciated by 2.9 per cent to $1,844.53, and Bitcoin (BTC) slipped by 2.7 per cent to $65,675.87.

Further, Dogecoin (DOGE) depleted by 1.4 per cent to $0.0928, Ripple (XRP) declined by 0.7 per cent to $1.21, and TRON (TRX) lost 0.4 per cent to sell at $0.3336, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) gained 0.01 each to settle at $0.9986 and $0.9997, respectively.

Economy

Customs Street Bleeds 1.44% as Lafarge Africa Leads Losers’ Chart

Published

4 hours ago

04/06/2026

Dipo Olowookere

By Dipo Olowookere

Nigeria’s stock market further depleted by 1.44 per cent on Wednesday following panic sell-offs by investors, who are cutting down their exposure to local equities.

Business Post observed that profit-taking dominated Customs Street at midweek, with all the key sectors of the Nigerian Exchange (NGX) Limited closing in red.

The insurance space shed 2.76 per cent, the industrial goods index lost 1.55 per cent, the banking counter declined by 1.53 per cent, the consumer goods segment shrank by 0.28 per cent, and the energy sector weakened by 0.05 per cent.

As a result, the All-Share Index (ASI) contracted by 3,554.05 points to 243,132.61 points from 246,686.66 points, and the market capitalisation moderated by N2.279 trillion to N155.940 trillion from N158.219 trillion.

Lafarge Africa led the losers’ chart yesterday after it gave up 9.97 per cent to trade at N307.90, Zichis lost 9.82 per cent to close at N29.20, Learn Africa depreciated by 9.80 per cent to N11.50, John Holt crashed by 9.80 per cent to N13.80, and Consolidated Hallmark dipped by 8.84 per cent to N6.19.

On the flip side, Abbey Mortgage Bank topped the gainers’ log after it grew by 9.93 per cent to N7.75, International Energy Insurance appreciated by 9.89 per cent to N6.00, Tripple G gained 9.80 per cent to sell for N4.37, Universal Insurance expanded by 8.91 per cent to N1.10, and Royal Exchange improved by 7.14 per cent to N1.50.

A total of 17 stocks gained weight yesterday, while 43 stocks lost weight, indicating a negative market breadth index and weak investor sentiment. This has been the mood of the market since the beginning of this week.

Market participants transacted 923.0 million shares worth N42.3 billion in 69,332 deals on Wednesday, in contrast to the 718.8 million shares valued at N29.3 billion traded in 71,683 deals on Tuesday, representing a drop in the number of deals by 3.28 per cent, and a rise in the trading volume and value by 28.41 per cent and 44.37 per cent, respectively.

Sterling Holdings led the activity chart with 264.6 million units valued at N2.1 billion, Access Holdings traded 76.7 million units worth N1.8 billion, Linkage Assurance exchanged 55.1 million units for N99.2 million, VFD Group sold 35.5 million units worth N378.8 million, and Ellah Lakes transacted 33.1 million units valued at N334.3 million.