Economy

Oil Remains at $58 Per Barrel on Coronavirus Fears

Published

6 years ago

28/01/2020

By Adedapo Adesanya

Into the second day of the new week, prices of oil have continued to fall, losing over $6 since an outbreak of coronavirus in the Wuhan city of China, with major oil futures pointing south as a result of precautions put in place.

With a total of over 80 deaths recorded so far, the Chinese government in an attempt to slow the spread of the virus, has announced travel curbs and quarantines, while companies in China have advised staff to work from home, and this is having a huge toll on the economy.

On Tuesday morning, the Brent crude futures extended losses by 0.51 percent or 30 cents to trade $58.27 per barrel, while the US West Texas Intermediate (WTI) shed a further 0.32 percent or 17 cents to trade at $52.97 per barrel, bringing prices to their lowest in three months.

The coronavirus was first identified on December 31 in the Chinese city of Wuhan and latest numbers show a total of 82 deaths, according to Chinese officials. It was also reported that there are at least 2,900 confirmed cases worldwide. The virus has now spread to 10 additional countries, including South Korea, Japan, the United States, and now in the African country of Ivory Coast, as a 34-year-old student was confirmed on Monday to be tested positive.

With the potential threat that this continued problem poses, the Organization of the Petroleum Exporting Countries (OPEC) and its allies have stated that it could respond to any impact on the oil market.

OPEC and other producers including Russia, known as OPEC+, have been cutting supply to support oil prices since 2017 and recently agreed to extend to a further 500,000 barrels per day (bpd) to 1.7 million bpd through March, and there has now been talks that there was a potential in the works.

Speaking on the issue, the cartel through its de-facto leader, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said that OPEC+ would step in to bolster prices if needed, adding that he was confident the Chinese and international authorities could contain the virus.

However, analysts believe that OPEC will need to quickly work on getting demand up as several factors which help prices such as a military blockade that stopped oil production in Libya as well as a surprise decline in US crude inventories last week were not enough to prop up prices.

There is also the threat of oversupply of the commodity with over 1 million barrels produced supplied in excess per day, which could be vary dangerous to prices even if the coronavirus is tackled.

Economy

OTC Securities Exchange Gains 1.41%

Published

10 minutes ago

26/03/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange rallied by 1.41 per cent on Wednesday, March 25, with the market capitalisation adding N35.04 billion to close at N2.512 trillion versus the previous session’s N2.477 trillion, and the Unlisted Security Index (NSI) expanding by 58.55 points to 4,198.85 points from 4,140.30 points.

The growth came amid a weak investor sentiment, as the OTC securities exchange recorded two price gainers and three price losers.

The advancers were led by Okitipupa Plc, which chalked up N25 to sell at N275.00 per share compared with the previous day’s N250.00 per share, and Central Securities Clearing System (CSCS) Plc grew by N7.43 to N86.37 per unit from N78.94 per unit.

On the flip side, FrieslandCampina Wamco Nigeria Plc lost N7.04 to sell at N101.13 per share versus Tuesday’s closing price of N108.73 per share, Geo-Fluids Plc went down by 9 Kobo to N2.89 per unit from N2.98 per unit, and Industrial and General Insurance (IGI) Plc dipped 3 Kobo to 50 Kobo per share from 53 Kobo per share.

Yesterday, the volume of securities rose by 135.6 per cent to 2.2 million units from 933,125 units, the value of securities increased by 2.4 per cent to N46.7 million from N45.6 million, and the number of deals grew by 27.6 per cent to 37 deals from 29 deals.

The most active stock by value on a year-to-date basis was CSCS Plc with 39.1 million units exchanged for N2.4 billion, followed by Infrastructure Guarantee Credit Plc with 400 million units valued at N1.2 billion, and Okitipupa Plc with 6.5 million units traded for N1.2 billion.

The most traded stock by volume on a year-to-date basis was Resourcery Plc with 1.1 billion units worth N415.7 million, followed by Infrastructure Credit Plc with 400 million units sold for N1.2 billion, and Geo-Fluids Plc with 132.9 million units transacted for N510.7 million.

Economy

Naira Retreats to N1,386/$ at Official FX Market

Published

35 minutes ago

26/03/2026

Adedapo Adesanya

By Adedap0 Adesanya

The value of the Naira fell against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, March 25, by N4.07 or 0.29 to N1,386.70/$1 compared with Tuesday’s closing price of N1,382.63/$1.

This was due to forex demand pressure without substantial supply from the Central Bank of Nigeria (CBN) and other sources. Lately, the central bank has not conducted any FX sales to eligible financial institutions, where Bureaux de Change (BDC) operators are allowed to access $150,000 weekly.

Also, in the official market, the Nigerian Naira depreciated against the Pound Sterling at midweek by N7.52 to close at N1,856.38/£1 versus the previous day’s N1,848.86/£1, and retreated against the Euro by N5.82 to trade at N1,605.80/€1 versus N1,599.98/€1.

The domestic currency further lost N3 against the greenback at the GTBank FX desk yesterday to sell for N1,391/$1, in contrast to the preceding session’s N1,388/$1, and at the black market, it depreciated by N5 to quote at N1,405/$1 compared with the N1,400/$1 it was exchanged a day earlier.

The prolonged conflict in the Middle East continues to heighten risk aversion, reducing appetite for emerging-market assets despite Nigeria’s attractive yield environment, which could help sustain offshore inflows and support the local currency in the near term, though structural challenges remain.

The country is making efforts that could help shield it further, including reviewing timelines for approval of resuscitation of moribund oil wells and boosting production, which accounts for over 60 per cent of FX earnings.

As for the cryptocurrency market, it was under pressure on Wednesday, as implied volatility and weakening suggest geopolitical risk concerns remain as macro headlines remain in focus.

Dogecoin (DOGE) depleted by 3.8 per cent to $0.0937, Solana (SOL) depreciated by 3.5 per cent to $89.10, Cardano (ADA) dipped 2.4 per cent to $0.2621, Ethereum (ETH) went down by 2.2 per cent to $2,117.47, Ripple (XRP) slumped 1.9 per cent to $1.38, Bitcoin shrank by 1.5 per cent to $70,012.58, and Binance Coin (BNB) dropped 1.4 per cent to sell for $634.82.

However, TRON (TRX) appreciated by 2.3 per cent to $0.3144, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

Economy

Oil Market Falls 2% as Iran Reviews US Peace Proposal

Published

2 hours ago

26/03/2026

Adedapo Adesanya

By Adedapo Adesanya

The oil market slid about 2 per cent on Wednesday after paring deeper losses earlier in the trading session, as Iran reviewed a proposal by the United States to end the war that has disrupted global energy flows.

Brent futures fell $2.27 or 2.2 per cent to settle at $102.22 a barrel, while the US West Texas ‌Intermediate (WTI) crude futures lost $2.03 or 2.2 per cent to trade at $90.32 per barrel.

It was reported that Iran was still reviewing a US proposal to end the war in the Gulf, despite an initial response that was negative, indicating that it had so far stopped short of rejecting it outright.

Pakistan delivered the 15-point proposal on behalf of the US government, and the consideration appeared to ⁠signal that at least some figures in Iran may be considering it.

Meanwhile, the White House Press Secretary, Mrs Karoline Leavitt, said President Donald Trump would hit Iran harder if it fails to accept that the Middle East country has been “defeated militarily”.

Currently, the market is facing the biggest-ever oil supply disruption as the US-Israel war has halted shipments of oil and liquefied natural gas through the Strait of Hormuz, which typically carries about 20 per cent of the world’s LNG and crude supply.

Market analysts noted that this has resulted in around 20 million barrels of crude losses daily, or some 500 million barrels, or five full days of global supply, since the war began on February 28. Countries have started rationing fuel use.

India, one of the world’s largest oil consumers, has bought its first cargo of Iranian liquefied ‌petroleum gas ⁠in years after the US temporarily removed sanctions.

Meanwhile, Japan has called on the International Energy Agency (IEA) for an additional coordinated release of oil stockpiles, as it seeks to shield consumers from higher energy prices.

In Venezuela, oil production, including condensate and gas liquids, reached 1.1 million ⁠barrels per day in March.

Amid these developments, Russia’s major export terminals suspended crude oil and oil products loadings after massive Ukrainian drone attacks sparked blazes. At least 40 per cent of Russia’s oil export capacity has been halted following Ukrainian drone attacks on its energy infrastructure.

The US Energy Information Administration (EIA) said energy firms added 6.9 million barrels of crude into stockpiles during the week ended March 20.
That was higher than the build of 2.4 million barrels reported by the American Petroleum Institute (API) on Tuesday.