Oil Prices Soar Amid Expansion in US Stockpiles

Image

By Adedapo Adesanya 

Oil prices rose by more than $1 a barrel on Wednesday as investors focused their attention on an upcoming OPEC+ output policy meeting and looked past a jump in crude stockpiles in the United States.

Brent crude futures were up by $1.01 or 1.2 per cent to $82.69 per barrel, and the US West Texas Intermediate (WTI) crude futures gained $1.16 or 1.5 per cent to close at $77.57 a barrel.

Prices were lifted by a media report that the Organisation of the Petroleum Exporting Countries and allies such as Russia, known collectively as OPEC+, was considering new oil production cuts of as much as 1 million barrels a day.

The Wall Street Journal (WSJ) reported that the 23-nation alliance was considering new oil production cuts, which could be announced on Thursday at a virtual meeting of the cartel.

The OPEC+ policy meeting and news surrounding its outcome is likely to be the main driver for oil price fluctuations in the near term, analysts noted.

ING analysts, meanwhile, cautioned that OPEC may delay its meeting yet again if it fails to reach an agreement on policy in advance after the first postponement happened due to internal disagreement. If the meeting is delayed again, prices will likely fall.

The market remained positive as a storm continued to disrupt crude loadings in the Black Sea. It has disrupted up to 2 million barrels per day of oil exports from Kazakhstan and Russia.

The disruption is expected to lower Kazakhstan’s oil production by 631,700 metric tons this week, its government said, adding that it was unclear when the situation would return to normalcy.

On its part, Russian oil companies are expected to re-route most of their volumes to Baltic ports for December while it won’t be the same for Kazakhstan which doesn’t have many alternative export routes for its oil.

The Energy Information Administration (EIA) reported an estimated inventory increase of 1.6 million barrels for the week to November 24.

This compared with a sizeable build for the previous week, at 8.7 million barrels, which pushed prices lower last week, contributing to other bearish factors.

A day earlier, the American Petroleum Institute (API) estimated a crude oil inventory dip of a little over 800,000 barrels for the week to November 24.

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
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
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

Image
21-February-2024

FG Completes $70m Yearly Concessionaire of Zungeru Plant to Penstock

By Adedapo Adesanya The federal government has completed the transfer of the operations of the Zungeru Hydroelectric Power Plant (ZHPP) to a concessionaire, Penstock Limited, in a move that will see the country earn $70 million yearly from the deal. The Vice President, Mr Kashim Shettima, confirmed this during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. A concession is a kind of partnership between the public sector and often private companies that have shown its added value in a specific area, for example developing infrastructure. The

More Stories
Image
06-September-2022

Medicaid, AstraZeneca Partner to Tackle Prostate Cancer in Nigeria

By Adedapo Adesanya To mark Prostate Cancer Awareness Month this September, Medicaid Cancer Foundation (MCF) and global pharmaceutical company, AstraZeneca, have launched the Project Icon initiative, in collaboration with the Ministry of Health. The initiative will raise awareness of early warning signs, and support screening efforts. For Nigerian men, prostate cancer is both the most common and most deadly cancer and these facts highlight the importance and urgency of ensuring that those at risk or those who are experiencing symptoms have timely access to healthcare services. To address the gaps in care that prevent men of all backgrounds from being

Image
18-February-2021

NUT Member Joins Oyo SUBEB Board

By Dipo Olowookere A member of the Nigeria Union of Teachers (NUT), Mr Oladimeji Raji, has been appointed to the board of the Oyo State Universal Basic Education Board. Mr Raji, the current Treasurer of the NUT, is an experienced educationist as he has served in the Oyo State teaching service for 30 years. He has also served at Progressive Day School II, Aladorin, Ibadan, the state capital. His appointment to the board, according to a statement from Oyo SUBEB, was approved by the Oyo State Government. The Executive Chairman of the agency, Dr Nureni Adeniran, speaking when he hosted

Image
18-February-2017

Oil & Gas: NCDMB Vows to Exceed 28% Nigerian Content

By Modupe Gbadeyanka The Nigerian Content Development and Monitoring Board (NCDMB) says it is working to surpass the current 28 percent Nigerian Content in the oil and gas sector of the economy. Mr Simbi Wabote, the Executive Secretary of the board, told News Agency of Nigeria (NAN) on Tuesday that they were working to increase the participation of Nigerians in the manufacture of more inputs for the oil industry. “What we have achieved so far is 28 per cent value retention within the country; that shows the extent of provision of goods and services by Nigerians using components manufactured in

Image
30-October-2016

AMCON To Unveil New Owner Of Keystone Bank Soon

By Modupe Gbadeyanka The new owner of Keystone Bank would be announced very soon, Managing Director of Assets Management Corporation of Nigeria (AMCON), Mr Ahmed Kuru, has disclosed. Mr Kuru, in an exclusive interview with Daily Trust, said the propose would “certainly” be concluded before the end of 2016. “Certainly, before the end of the year the process will be concluded,” he assured, explaining that about 98 percent of the transactions had already been completed. Explaining further, the AMCON boss said selling a bank was not like selling a factory because there are many stakeholders involved. “So, it follows rigorous

Image
20-October-2021

New Global Tax Rules to Address Imbalances in Africa’s Tax Revenue

By Denny Da Silva One hundred and thirty-six of the 140 members of the OECD G20 Inclusive Framework, including South Africa, have agreed on a new set of global tax rules that will reform the world’s tax system. Notably, two African countries that are members of the Inclusive Framework have not yet joined the agreement – Kenya and Nigeria. The two-pillar system will be presented to the G20 Leaders’ Summit at the end of October 2021. It will result in a reallocation of taxing rights from resident to source countries of certain multinational enterprises (MNEs), if thresholds are met, in

Image
28-August-2019

Russia Expresses Satisfaction Cooperating with Angola

By Kester Kenn Klomegah Russian Foreign Minister Sergey Lavrov and his Angolan counterpart Manuel Domingos Augusto have held talks in Moscow to review and discuss economic cooperation between the two countries and ways to resolve conflicts in Africa. Lavrov and Manuel Augusto paid a special attention to trade, economic, investment and mining cooperation between Russia and Angola, as well as to business ties between the two countries’ regions. In addition, they discussed preparations for the Russia – Africa Summit scheduled to take place in Sochi in October. Russia’s Black Sea resort of Sochi will host the first Russia-Africa Summit on

Image
08-September-2023

Lightway Homes to Redefine Arepo Skyline With Roman Heights

By Aduragbemi Omiyale The skyline of Arepo, a border community adjacent to Lagos and often referred to as Magodo Phase III, is about to wear a new look with the introduction of Roman Heights by a real estate company, Lightway Homes and Investment Limited. The firm is planning to provide high-quality, affordable, and sustainable high-rise housing solutions for Nigerians, especially the inhabitants of the area. “Nigerians can anticipate an elevated lifestyle featuring a rooftop lounge, an inviting swimming pool, a convenient elevator, modern co-working office spaces, a fully equipped gym, uninterrupted power supply, ample parking facilities, and extraordinary communal areas,”

Image
04-December-2016

NLPGA Unveils Omotola Brand Ambassador

By Dipo Olowookere Nigerian actress, Omotola Ekeinde, has been named announced the brand ambassador for the Nigeria Liquefied Petroleum Gas Association (NLPGA). The entertainer was unveiled on Thursday, December 1, 2016. The actress highlighted the importance and benefits of educating millions of Nigerian women and families on the health hazards surrounding the use of firewood and even kerosene in preparing meals. “We must now reach out to more women and indeed families on the need to embrace the use of liquefied gas, which is cleaner, healthier, safer and even more cost effective,” she said. At an event to unveil her,

Ad
Ad
Recent Stories
Image
22-February-2024

Purple Real Estate Welcomes Umar, Oladimeji to Board

By Adedapo Adesanya Nigerian real estate platform, Purple Real Estate Income Plc, has made significant changes to its board, marking a pivotal moment in the company’s growth strategy amid current macro headwinds. The reshuffle brings on Mr Aminu Umar and Mr Olasunkanmi Oladimeji to join the board as Non-Executive Director and Executive Director. The duo of Mr Umar and Mr Oladimeji will take over from Mrs Osareme Archibong and Mrs Fiona Ahimie, both outgoing Independent Non-Executive Directors, according to notice on NASD OTC Securities Exchange, where the company trades its securities. Commenting on the changes, the Chairman of the board,

Image
22-February-2024

AFCON 2023: Nigerian Content Creators See 200% Rise in Revenue, Views

By Adedapo Adesanya Content creators in Nigeria saw a 200 per cent increase in views and revenue between December 2023 and February 2024, a new study shared with Business Post showed. According to new data released by StarNews Mobile, an African video streaming platform, content creators across Africa experienced a 300 per cent surge in revenues during the 2023 Africa Cup of Nations (AFCON) held between January 13 and February 11, 2024, reaffirming the massive surge in consumption of hyper-localized content from the continent. Based on metrics from StarNews Mobile’s platform, creators in Nigeria were only outshone by their peers

Image
22-February-2024

Two Die, 15 Rescued in Ikoyi-Lekki Link Bridge Boat Mishap

By Modupe Gbadeyanka Two persons have been confirmed dead in a boat accident that occurred on Wednesday night at the Ikoyi-Lekki Link bridge in Lagos. The Lagos State Emergency Management Agency (LASEMA), which confirmed the incident, stated that 15 persons were rescued in the mishap. The agency stated that the boat, which was conveying 17 passengers, was heading to the Ikorodu area of the metropolis from its take-off point, Sandfil, when it capsized at the Powerline area of the popular bridge. It said the body of a female passenger, who drowned, was recovered, while the corpse of the male passenger

Image
22-February-2024

NPPAN Targets $10bn Contribution to Nigeria’s GDP via Palm Biomass

By Adedapo Adesanya The federal government will sign a Memorandum of Understanding (MoU) with the Malaysian government to develop palm biomass in the country as part of efforts to utilise one of the undertapped farm produces in the country. Mr Alphosus Inyang, President of the National Palm Produce Association of Nigeria (NPPAN), made this disclosure, saying palm biomass is a multi-billion dollar economy. “Biomass simply means agricultural waste and we are talking about turning waste into wealth,’’ he said in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja. The president said NPPAN was working with

Image
22-February-2024

Salesforce Introduces Clean Energy Programme Management

By Modupe Gbadeyanka A new solution to help electric, gas, and water utilities increase customer participation in clean energy programmes has been introduced by Salesforce. The initiative known as Clean Energy Programme Management for Energy & Utilities Cloud streamlines the launch, management, and oversight of energy efficiency, conservation, electrification, and EV charging programs. It helps utilities manage clean energy initiatives with connected data — like energy usage and billing information — and personalised engagement to promote relevant programmes. This platform also digitises and simplifies the application process for customers, participating contractors, and utility program staff to help increase clean energy

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
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