Oil Sheds Over 3% as OPEC, JTC Wade in to Stop Further Drop

Image

By Adedapo Adesanya 

Oil futures recorded more than three percent drop on Monday, February 3 as fears surrounding the coronavirus and its impact on oil demand continue to pull prices further.

Brent crude fell $2.28 or 4.10 percent to $54.32 per barrel on Monday night, while the US West Texas Intermediate (WTI) crude fell $1.46 or 2.83 percent to settle at $50.10. Earlier at the session, the WTI posted below $50 to trade at $49.

Markets continue to face drop as a result of the coronavirus, which analysts consider the largest demand shock faced by the oil market since the global financial crisis of 2008 to 2009, and the most sudden since the September 11 attacks.

This continuous dip has forced the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to consider an emergency meeting on February 14-15, one of the OPEC sources said, earlier than a current schedule for a meeting in March that could see further cut on production to stop the decline in prices.

Meanwhile, an OPEC and non-OPEC panel called the Joint Technical Committee (JTC) has scheduled a meeting for February 4 and 5 in Vienna to assess the impact of the virus on demand.

Oil, last month, fell more than $10 a barrel to $56, lower than the level many OPEC countries need to balance their budgets, such as Nigeria with a $57 stipulated price already affected and de-facto leader, Saudi Arabia which has a benchmark of $80 per barrel.

The outbreak could cut China’s oil demand by nothing less than 250,000 barrels per day (bpd) in the first quarter of the year, according to analysts. The country consumes about 14 million barrels a day and with any change in demand, it affects the global energy market.

An OPEC member, Iran, said on Monday that the spread of the virus had hit oil demand and called for the need to stabilise prices. This backs up call made by the Russian Energy Minister, Mr Alexander Novak, last week when he said Russia was ready to bring forward a meeting to February from March to address a possible change to global oil demand from the virus.

OPEC officials had been scheduled to meet in early March with Russia and their other non-OPEC partners to review their production deal, and possibly increase their cut from 1.7 million barrels agreed upon last year to a higher cut.

There are considerations by members that the meeting could lead the alliance to cut their oil output by a further 500,000 barrels per day (bpd) to reach 2.2 million bpd to stifle declines.

There are also reports that discussions were ongoing to consider extending the duration of the cuts set to expire by March to June.

Share
Related Stories
Image
30-November-2023

NAICOM Asks Insurance Companies to Tackle Unpaid Claims

By Adedapo Adesanya The boards of insurance companies operating in the country have been charged by the National Insurance Commission (NAICOM) to embrace the measures put in place to tackle the challenges of unpaid claims. The Commissioner for Insurance, Mr Sunday Thomas, expressed worry over the number of outstanding claims in the sector despite efforts by the regulator to address the issue. Mr Thomas, who is also the chief executive of NAICOM, said the organisation, in collaboration with members of the Insurers’ Committee, has taken decisions and incepted measures designed to tame the menace of unpaid claims. Speaking at the

Image
30-November-2023

House of Reps to Halt IOCs from Selling Oil Assets

By Adedapo Adesanya The House of Representatives has pledged to stop international oil companies (IOCs) operating in the Niger Delta from divestment of their offshore assets without being accountable to the environment. The Chairman of the House of Reps Committee on Host Communities, Mr Dumnamene Dekor, said this during a technical session on the implementation of the Host Communities Development Trusts (HCDT), organised by Spaces for Change (S4C) with support from Ford Foundation. Mr Dekor raised the alarm that since the passage of the Petroleum Industry Act in 2021, host communities have not experienced any positive change, rather have remained

Image
02-December-2023

Oil Falls on Worries About Voluntary Supply Cuts

By Adedapo Adesanya Oil slumped by more than 2 per cent on Friday as traders showed scepticism about the depth of supply cuts by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) as well as concerns about sluggish global manufacturing activity. Brent crude went down by $1.98 or 2.45 per cent to close at $78.88 a barrel as the US West Texas Intermediate (WTI) crude dropped $1.89 or 2.49 per cent to sell for $74.07 a barrel. For the week, Brent posted a decline of about 2.1 per cent, while WTI lost more than 1.9 per cent.

Image
02-December-2023

Nigerian Exchange Begins December With 0.08% Growth

By Dipo Olowookere The Nigerian Exchange (NGX) Limited commenced the first trading session in December 2023 on a bullish note, with a marginal growth of 0.08 per cent. Sustained buying pressure kept Nigerian stocks in the positive territory, extending the dominance of the bulls on Customs Street, though the turnover waned. Business Post observed that investors cherry-picked equities in the banking and the energy sectors during the session, leaving them rising by 1.14 per cent and 0.05 per cent, respectively. However, the insurance counter lost 1.10 per cent, the consumer goods index depreciated by 0.08 per cent, and the industrial

More Stories
Image
09-April-2017

I Want Details of Recovered Loots—Buhari Orders CBN, EFCC, Others

By Dipo Olowookere The Attorney-General of the Federation (AGF), Mr Abubakar Malami; Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele; and the Acting Chairman of the Economic and Financial Crimes Commission (EFCC), Mr Ibrahim Magu have been ordered to provide a detailed submission on amount of monies recovered so far by them since the inception of this administration on May 29, 2015. President Muhammadu Buhari, who gave this order, further said Chairman of the Independent Corrupt Practices Commission (ICPC), Mr Ekpo Nta; the National Security Adviser (NSA), Mr Babagana Monguno; and the Director-General of the Department of

Image
29-March-2017

Ghana Slashes Interest Rate to 23.5%

By Modupe Gbadeyanka The Bank of Ghana has reduced the country’s benchmark rate to 23.5 percent from 25.5 percent as inflation eases and the West African nation’s currency, the Cedi, recovers. This is the second time in four months that Ghana’s central bank would be slashing the interest rate as the economy finds its bearing again. On Monday, the Governor of Bank of Ghana, Mr Abdul Nashiru Issahaku, explained to newsmen in Accra, the country’s capital city that the benchmark rate was cut because the underlying inflation pressures have eased considerably. He pointed out that inflation is projected to trend

Image
23-October-2017

Kaspersky Unveils Global Transparency Initiative

By Modupe Gbadeyanka As part of its ongoing commitment to protecting customers from cyberthreats, regardless of their origin or purpose, Kaspersky Lab has announced the launch of its Global Transparency Initiative. With this Initiative, Kaspersky Lab will engage the broader information security community and other stakeholders in validating and verifying the trustworthiness of its products, internal processes, and business operations, as well as introducing additional accountability mechanisms by which the company can further demonstrate that it addresses any security issues promptly and thoroughly. Also as part of the Initiative, the company intends to provide the source code of its software

Image
06-November-2018

Interbank Lending Rate Drops to 3.58%

By Modupe Gbadeyanka The nation’s overnight lending rate moderated to 3.58 percent on Monday from 4.83 percent recorded at the close of transactions last Friday. This was as system liquidity remained significantly robust following inflows from the Central Bank of Nigeria (CBN) in the previous session. Also at the close of business yesterday, the Open Buy Back (OBB) rate went down to 3.08 percent from 4.08 percent in the last trading day. According to analysts at Zedcrest Research, barring a significant liquidity mop up by the CBN, system liquidity which opened the week at N950 billion is expected to remain

Image
26-January-2021

NECO Shifts Exam Date for 2020 External SSCE

By Ahmed Rahma The National Examinations Council (NECO) has postponed the commencement of the 2020 Senior Schools Certificate Examinations (SSCE) for external candidates. The nation’s examination body, which had earlier fixed the date for the start of the exercise for Monday, February 1, 2021, said the exam will no longer take place on that date but at another day. In a statement issued on Tuesday by its Head of Information and Public Relations Division, Mr Azeez Sani, it was disclosed that the new date for the exercise is Monday, February 8, 2021. NECO explained that the rationale behind the shift

Image
20-February-2017

UN Declares Famine in Parts of South Sudan

By Modupe Gbadeyanka War and a collapsing economy have left some 100,000 people facing starvation in parts of South Sudan where famine was declared today, three UN agencies warned. A further 1 million people are classified as being on the brink of famine. The Food and Agriculture Organization of the United Nations (FAO), the United Nations Children’s Fund (UNICEF) and the World Food Programme (WFP) also warned that urgent action is needed to prevent more people from dying of hunger. If sustained and adequate assistance is delivered urgently, the hunger situation can be improved in the coming months and further

Image
08-March-2022

Unity Bank, AltSchool Africa Empower Female Software Engineers

By Aduragbemi Omiyale Nigeria’s retail lender, Unity Bank Plc, has collaborated with AltSchool Africa to sponsor female students towards the acquisition of specialist software skills. This partnership is in commemoration of International Women’s Day (IWD) 2022 and an empowerment initiative to boost the capacity of the female gender. AltSchool Africa is a school for individuals looking to gain technical skills and kick start a career in Software Engineering. The school currently prides itself on the large enrolment of female students. Unity Bank Plc is providing funds to encourage enrolment of young female students into AltSchool who will pursue a career

Image
30-October-2018

US Stocks Open Higher on Easing Trade Concerns

By Investors Hub The major U.S. index futures are pointing to a modestly higher opening on Tuesday, with stocks likely to attempt another rebound after turning lower over the course of the previous session. The upward momentum on Wall Street comes after the downturn seen on Monday dragged the Nasdaq and the S&P 500 down to six-month closing lows and the Dow fell to its lowest closing level in well over three months. Traders may once again look to pick up stocks at reduced levels after bargain hunting efforts in the previous session were thwarted by renewed concerns about the

Ad
Ad
Recent Stories
Image
02-December-2023

Strong Inflationary Pressures Keep Nigeria’s Private Sector PMI Down

By Modupe Gbadeyanka Strong inflationary pressures in November further negatively impacted companies in Nigeria, with new orders and output both falling as customers were either reluctant or unable to pay higher charges. Purchase prices rose at the fastest pace in almost two years amid exchange rate weakness and higher costs for fuel and materials. According to the latest Purchasing Managers’ Index (PMI) from Stanbic IBTC, business conditions remained under pressure, scoring 48.0 points last month compared with the 49.1 points it garnered in October 2023. Readings above 50.0 signal an improvement in business conditions, while readings below 50.0 show deterioration.

Image
02-December-2023

Coker-Odusote: 100 Days at the Helm of NIMC

By Walter Duru, Ph.D It was Albert Einstein who once said that “setting an example is not the main means of influencing another, it is the only means.” That sentiment expressed by Einstein is the primary essence behind the theory of transformational leadership, which requires passion, charisma, and the ability to motivate others. Transformational leaders are usually very authentic, emotionally intelligent, great listeners, results-focused, visionary, and self-aware. In just 100 days at the helm of the National Identity Management Commission (NIMC), Engr. Abisoye Coker-Odusote has ushered in a new era of transformational leadership, leaving an indelible mark on the organization. Her eventual confirmation

Image
02-December-2023

Partnerships for Progress: Collaboration Between Banks and Fintechs is the Future of Banking in Africa

By Ike.S Anison Historically, the formal banking sector’s penetration in Africa has been relatively low. And, while there has been significant improvement in this area in recent years, there is still a significant portion of the population on the continent who are unbanked or lack access to financial services. According to the World Bank, approximately 350 million adults in sub-Saharan Africa are still unbanked, accounting for 17% of the 2 billion global unbanked population. This has largely been due to a struggle to tap into the continent’s low-income segment, the widest proportion of the population. Consumers within this market feel

Image
02-December-2023

Naira Plunges 11.4% to N927/$1 at Official Market as FX Demand Rises

By Adedapo Adesanya The Naira started the first trading session in the last month of 2023 on a negative note after it depreciated against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM), which is the official FX window, by 11.4 per cent or N94.87 on Friday, December 1, closing at N927.19/$1, in contrast to Thursday’s exchange rate of N832.32/$1. The December rush for forex contributed to the weakening of the domestic currency in the spot market yesterday, as the supply of foreign currency could not meet what customers needed. Data showed that the value of FX transactions recorded

Image
02-December-2023

Newrest, FrieslandCampina, Acorn Drive 0.14% Gain at Unlisted Stock Market

By Adedapo Adesanya The trio of Newrest Asl Plc, FrieslandCampina Wamco Nigeria Plc, and Acorn Petroleum Plc made the NASD Over-the-Counter (OTC) Securities Exchange appreciate by 0.14 per cent on Friday, December 1. The three gainers pressed down the 8 Kobo loss reported by UBN Property Plc, which closed the trading session at N1.52 per unit compared with the preceding day’s value of N1.60 per unit. During the trading day, Newrest Plc gained N1.46 to close at N16.10 per share compared with Thursday’s closing price of N14.64 per share, FrieslandCampina Wamco Plc moved up by 60 Kobo to end the

Image
02-December-2023

Oil Falls on Worries About Voluntary Supply Cuts

By Adedapo Adesanya Oil slumped by more than 2 per cent on Friday as traders showed scepticism about the depth of supply cuts by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) as well as concerns about sluggish global manufacturing activity. Brent crude went down by $1.98 or 2.45 per cent to close at $78.88 a barrel as the US West Texas Intermediate (WTI) crude dropped $1.89 or 2.49 per cent to sell for $74.07 a barrel. For the week, Brent posted a decline of about 2.1 per cent, while WTI lost more than 1.9 per cent.

Image
02-December-2023

Sanwo-Olu Assures Businesses More Incentives, Commissions New Godrej Factory

By Modupe Gbadeyanka Business owners in Lagos have been assured of more incentives by the state governor, Mr Babajide Sanwo-Olu, who added that this is part of his administration’s commitment to reforms aimed at improving the ease of doing business and enhancing investment opportunities. Speaking at the commissioning of the newly-built wet hair production factory of Godrej Nigeria Limited, the Governor said his government would continue to pursue actions that would eliminate red tapes and regulatory impediments hindering the growth of businesses in the state, thereby demonstrating his willingness for continued collaboration with the private sector to improve the livelihood

Image
02-December-2023

Nigerian Exchange Begins December With 0.08% Growth

By Dipo Olowookere The Nigerian Exchange (NGX) Limited commenced the first trading session in December 2023 on a bullish note, with a marginal growth of 0.08 per cent. Sustained buying pressure kept Nigerian stocks in the positive territory, extending the dominance of the bulls on Customs Street, though the turnover waned. Business Post observed that investors cherry-picked equities in the banking and the energy sectors during the session, leaving them rising by 1.14 per cent and 0.05 per cent, respectively. However, the insurance counter lost 1.10 per cent, the consumer goods index depreciated by 0.08 per cent, and the industrial

Image
01-December-2023

CBN Orders Banks to Place PND on Accounts Without BVN, NIN

By Adedapo Adesanya All bank accounts without Bank Verification Number (BVN) and National Identification Number (NIN) will from April 2024 have “Post No Debit (PND)” placed on them. This is the latest directive of the Central Bank of Nigeria (CBN) to financial institutions operating in the country. In a circular issued by the apex bank and sent to all deposit money banks (DMBs) on Friday evening, the CBN said all the BVN or NIN attached to and/or associated with AL accounts/wallets must be electronically revalidated by January 31, 2024. In the circular seen by Business Post, the central bank said

Image
01-December-2023

LCCI Demands Transparency in CBN Recapitalisation Plan

By Adedapo Adesanya The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to strengthen its banking supervision to prevent some crucial Nigerian banks from failing due to its planned recapitalisation. Last Friday, the Governor of CBN, Mr Olayemi Cardoso, said the CBN would be directing banks to increase their capital base to serve a $1 trillion economy to be achieved by 2030. In a statement signed by Mrs Chinyere Almona, the director general of LCCI, the chamber said, “On recapitalisation of banks, we commend the plan of the apex bank to review the