Connect with us

Economy

Oil Tumbles by $5 on OPEC+ Decision, Delta Variant Spread

Published

on

oil weak dollar

By Adedapo Adesanya

Oil prices lost more than $5 a barrel on Monday, closing out its worst day since March, with the Brent declining by $5.24 or 6.8 per cent to close at $68.91 per barrel, while the West Texas Intermediate was down by $5.39 or 7.5 per cent to sell at $66.63 per barrel.

This came after the Organization of the Petroleum Exporting Countries and allies (OPEC+) reached a compromise on Sunday to increase output.

The alliance noted that it would start returning 400,000 barrels per day to the market every month beginning from August until it unwinds all the 5.8 million barrels per day cuts started last year.

ALSO READ  Oando Gives Update on SEC Investigation, Says Petitions Lack Merit

The prospect of monthly increments in oil supply from the OPEC+ alliance comes just as COVID infections are rising in many countries because of the faster-spreading Delta variant.

Globally, cases are already flaring up around the world because of the variant and there was no exception in the largest producing country, the United States, where cases have rebounded this month, with the contagion spreading among the unvaccinated.

The US is averaging nearly 26,000 new cases a day in the last seven days through Sunday, up from a seven-day average of around 11,000 cases a day a month ago.

ALSO READ  NNPC Warns Consumers against Panic Buying of Petrol

This seems to be the latest worry for the crude market as it has been detected in about 100 countries around the world, including Nigeria.

However, poor rollouts and acceptance of vaccination programmes in many countries are undermining the battle against the virus, raising the prospect of more lockdowns that would hit demand for oil products.

The market is expected to hold steady after this slump as consumption in the US has steadily strengthened in recent weeks.

Meanwhile, India, the third-biggest importer, has cut back imports due to oversupply and fears of reduced demand.

ALSO READ  CBN's Monetary Policies Boosted Economy, Stock Market—Elumelu

Amid the current climate, some major banks have argued the market will continue to rally.

Goldman Sachs reiterated on Monday that it sees more upside, adding that the OPEC+ agreement was in line with its view that producers should focus on maintaining a tight physical market.

The Royal Bank of Canada said high-frequency indicators showed that restaurant bookings – a sign of economic health – over the weekend in the United States, the world’s biggest oil consumer, were at pre-COVID levels, while domestic flights were at the highest level since the pandemic started.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Click to comment

Leave a Reply

Economy

CBN Gives Nearly 4 million Farmers N756.5bn

Published

on

Ghana peasant farmers

By Ashemiriogwa Emmanuel

The Central Bank of Nigeria (CBN) on Tuesday said it has disbursed N756.5 billion to nearly 4 million (approximately 3,734,938) smallholder farmers cultivating 4.6 million hectares of land to improve food security in the country.

The development was revealed by CBN Governor, Mr Godwin Emiefele, while presenting the communiqué of the Monetary Policy Committee (MPC) meeting in Abuja.

ALSO READ  Oil Falls as OPEC+ Mulls Raising Supply

According to the CBN boss, a total number of 627,051 farmers were granted N120.2 billion for the 2021 wet season under the Anchor Borrowers’ Programme (ABP) to cultivate 847,484 hectares of land.

“Under the bank’s development finance initiatives, the bank granted N756.5 billion to 3,734,938 smallholder farmers cultivating 4.6 million hectares of land, of which N120.2 billion was extended for the 2021 wet season to 627,051 farmers for 847,484 hectares of land, under the ABP,” Mr Emefiele said.

ALSO READ  NNPC Warns Consumers against Panic Buying of Petrol

Furthermore, the apex bank said a total of N121.6 billion has been shared among 32,617 beneficiaries under the Agribusiness/Small and Medium Enterprise Investment Scheme (AGSMEIS).

Mr Emiefele also disclosed that the bank has released N318.2 billion to 679,422 beneficiaries for the targeted credit facility.

These beneficiaries, as said by the CBN chief, includes 572,189 individuals and 107,233 small and medium scale enterprises (SMEs).

ALSO READ  Deap Capital, Two Others Get N5m Fine From NSE

Meanwhile, the committee reviewed the domestic economic developments and noted that the non-oil sector, agriculture and industry sub-sectors were the major drivers of improvement as it recorded growth rates of 2.28 and 0.94 per cent, accordingly.

Continue Reading

Economy

Lafarge Africa Grows Net Sales to N145bn in Six Months

Published

on

Lafarge Africa

By Dipo Olowookere

One of the major cement manufacturers in Nigeria, Lafarge Africa Plc, has continued to show resilience in the face of various challenges caused by COVID-19.

On Thursday, the firm released its half-year earnings for 2021 and the results showed that the net sales grew by 20.3 per cent to N145.0 billion from N120.5 billion in the same period of 2020.

Business Post reports that the sale of cement accounting for N141.4 billion of the total revenue for the period versus N118.6 billion in H1 2020, while the sale of aggregates and concrete contributing N3.6 billion compared with N2.0 billion in the same period of last year.

ALSO READ  Oil Posts First Weekly Loss Since April

The financial statements revealed that the cost of sales gulped N97.0 billion as against N78.8 billion in the first six months of 2020, leaving the organisation with a gross profit of N48.0 billion compared with N41.7 billion in 2020, while the operating profit improved to N38.2 billion from N32.8 billion.

In the results, Lafarge Africa said it had selling and marketing costs of N1.5 billion, lower than N1.6 billion in the same time of last year and this was mainly due to a reduction in advertising expenses to N113.0 million from N182.5 million.

ALSO READ  Oil Plunges 5% as Lockdown in Europe Weakens Market

However, the administrative costs rose to N9.2 billion from N7.8 billion as a result of the rise in salaries and other staff-related costs, office and general expenses, as well as technical service fees.

In the period, the cement firm recorded a decline in finance income, which stood at N362.9 million compared with N377.1 million, while the finance costs went down to N2.7 billion from N4.4 billion.

On the bottom line of the results, Lafarge Africa said it had a profit before tax of N36.8 billion in H1 2021 versus N28.8 billion in H1 2020, while the profit after tax jumped to N28.3 billion from N23.3 billion.

ALSO READ  Oando Gives Update on SEC Investigation, Says Petitions Lack Merit

The CEO of Lafarge Africa, Mr Khaled El Dokani, while commenting on the results, stated that, “Our performance remained resilient in Q2 2021, with net sales of 29.4 per cent, recurring EBIT of 11.1 per cent and net income of 25.7 per cent compared to the previous year.

“We are equally pleased with the progress we are making on sustainability; our use of affordable clean energy and our agroecology footprint is in accordance with the acceleration of our net-zero pledge”.

Continue Reading

Economy

NGX Index Slumps 0.03% Amid Weak Trading Activity

Published

on

Trading Activity

By Dipo Olowookere

Trading activity on the floor of the Nigerian Exchange (NGX) Limited was weak on Wednesday as investors continued to play safe.

Some of the traders have retreated from the market, awaiting the release of the half-year results of market shakers like Dangote Cement, the tier-one banks and others.

As a result, the NGX depreciated by 0.03 per cent, causing the All-Share Index (ASI) to drop 11.12 points to 38,791.03 points from 38,802.15 points.

Equally, the market capitalisation went down at the midweek trading session by N6 billion to close at N20.211 trillion compared with the previous day’s N20.217 trillion.

Business Post reports that sell-offs in banking and insurance equities contributed to the decline as their respective indices depreciated by 0.96 per cent and 0.88 per cent.

ALSO READ  Oil Improves on Better Chinese Data, Vaccination Efforts

But during the session, the energy sector appreciated by 1.68 per cent, while the consumer goods counter grew by 0.11 per cent, with the industrial goods index closing flat.

Consolidated Hallmark Insurance and Tripple Gee were the worst-performing stocks yesterday as they lost 10.00 per cent each to close at 54 kobo and 90 kobo respectively.

Pharma Deko depreciated by 9.92 per cent to trade at N1.09, Regency Alliance lost 6.82 per cent to sell for 41 kobo, while Eterna went down by 6.58 per cent to N7.10.

ALSO READ  Oil Plunges 5% as Lockdown in Europe Weakens Market

At the other side, Capital Hotels outperformed others after its value rose by 9.85 per cent to trade at N2.90 and was trailed by Oando, which gained 9.81 per cent to close at N5.26.

BOC Gases appreciated by 8.88 per cent to N9.20, FTN Cocoa grew by 8.16 per cent to 53 kobo, while Livestock Feeds improved by 4.80 per cent to N2.40.

At the close of business, investors traded 237.5 million shares worth N1.9 billion in 4,305 deals in contrast to the 243.1 million shares worth N1.9 billion transacted in 4,326 deals on Tuesday.

This indicated that while the trading volume and the number of deals depreciated by 2.29 per cent and 0.49 per cent respectively, the trading value closed flat.

ALSO READ  Notore Chemical Industries Shuts Down Plant

It was observed that the demand for Oando stocks persisted after a settlement of its dispute with the apex capital market regulator, the Securities and Exchange Commission (SEC).

On Wednesday, the company was the most traded stock with the sale of 44.3 million units valued at N233.0 million, while UBA, which followed, traded 19.4 million units worth N150.8 million.

Wema Bank transacted 14.2 million units valued at N11.9 million, Access Bank traded 13.3 million units worth N123.7 million, while Jaiz Bank transacted 12.3 million units valued at N7.6 million.

Continue Reading

Like Our Facebook Page

Latest News on Business Post

Trending

%d bloggers like this: