Connect with us

Economy

OPEC Basket Falls to $43.31 Per Barrel

Published

on

OPEC Meeting US Stocks

By Adedapo Adesanya

The Organization of the Petroleum Exporting Countries (OPEC) daily basket price stood at $43.31 per barrel on Thursday, compared with $43.44 per barrel recorded on Wednesday.

According to OPEC Secretariat calculations released Friday, the latest price indicated that the basket price dropped 0.3 percent on Thursday.

The loss can be attributed to the worries over demand which continues to face a headwind with rising coronavirus cases in the United States and other major economies.

Also known as the OPEC reference basket of crude oil, the OPEC basket, a weighted average of oil prices from different OPEC members around the world, is used as an important benchmark for crude oil prices.

ALSO READ  Continental Reinsurance Posts N3.1b Profit in 2016

The OPEC Reference Basket of Crudes is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

In other OPEC related news, the cartel’s production hit its lowest point on record in June, when additional voluntary cuts made by Saudi Arabia, the United Arab Emirates (UAE), and Kuwait improved the production restrictions.

ALSO READ  OPEC Basket Drops 0.96% to $43.15 Per Barrel

Overall group output fell by 1.8 million barrels per day from May to 22.3 million barrels per day in June.

Saudi Arabia, the UAE and Kuwait pledged combined extra cuts that took their respective maximum under the deal down to 7.5 million; 2.4 million and 2.1 million barrels daily respectively for the month.

ALSO READ  BDC Operators Exchange Pound Sterling at N614 in Abuja

This commitment prompted Saudi Arabia and Kuwait to interrupt production at the recently restarted offshore 300,000 barrels per day Khafji field in the shared Neutral Zone throughout June.

The three Mideast Gulf producers will not replicate their voluntary cuts in July. Instead, the OPEC+ group has extended its June cuts into this month, with no talks yet of a further extension.

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

NGX Upgrades BOC Gases Shares to Medium-Priced Stock Group

Published

on

BOC Gases

By Dipo Olowookere

Shares of BOC Gases have been upgraded and placed on the medium-priced stock level from the previous low-priced stock category.

The reclassification became necessary after its equity value has traded at the current group for a period of four of its most recent six months.

The Nigerian Exchange (NGX) Limited puts stocks on its trading platform into three groups; high-priced, medium-priced, and low-priced levels and this is purely based on their market price.

ALSO READ  Asian Stocks Finish Higher as Oil Prices Inch up

In this regard, securities must have traded for at least four out of the most recent six-month period within a stock price level’s specified price band to be classified into the category.

In a notice on Wednesday, the exchange said a review of BOC Gases’ stock price and trade activities over the most recent six-month period provides the basis for reclassifying the security from the low-priced stock group to the medium-priced stock group.

ALSO READ  Financial System Liquidity Remains Positive

“This reclassification also necessitates the attendant change in the tick size change from one kobo to 5 kobo, in line with Rule 15.29: Pricing Methodology, Rulebook of the Exchange, 2015,” the notice sighted by Business Post explained.

It was further explained that BOC Gases stock price appreciated above the N5 price level on November 16, 2020, and traded above N5 up till the close of business on March 17, 2021.

ALSO READ  How 5G Will Impact Nigeria’s Business Sector in 2021?

“This indicates that BOC Gases Plc stock price has traded above N5 in at least 4 months out of the last 6 months.

“Resultantly, BOC Gases Plc has been reclassified from the low-priced stock group to the medium-priced stock group with effect from today, [Wednesday], June 16, 2021,” the disclosure added.

Shares of BOC Gases closed flat today at the stock exchange at N10.55 per unit.

Continue Reading

Economy

SEC Okays NG Clearing as Central Counterparty

Published

on

NG Clearing Central Counterparty

By Aduragbemi Omiyale

NG Clearing Limited, a company incorporated on May 24, 2016, to facilitate derivatives trading in the Nigerian capital market, has been given the licence to operate as a central counterparty (CCP).

The authorisation was given by the Securities and Exchange Commission (SEC), the apex regulatory agency in the Nigerian capital market and this licence became effective Monday, June 7, 2021.

With the registration to perform the function of a CCP, NG Clearing becomes the first organisation to carry out this duty in the country. It means the firm has the authority to clear and settle exchange-traded derivative products.

The Chairman of NG Clearing, Mr Oscar Onyema, expressed delight over this development, noting that it will improve the soundness and safety of the Nigerian financial market.

ALSO READ  Continental Reinsurance Posts N3.1b Profit in 2016

He said the company will deliver best-in-class post-trade services that manage counterparty credit risk and reduce systemic risk by interposing itself as a guarantor to both parties in a transaction, thus ensuring the successful execution of derivatives and other trades from various trade points in Nigeria.

“NG Clearing will deliver an unparalleled CCP experience for the Nigerian financial and capital markets and will optimise the deployment of its resources to achieve long-term value creation for its stakeholders using a state-of-the-art risk management framework, which complies with global best practices for mitigating settlement risk,” he said.

On his part, the Managing Director of NG Clearing, Mr Tapas Das said the company has sufficient financial resources, including a settlement guarantee fund to cover participants’ risk exposures.

ALSO READ  FMDQ Holds Nigerian Debt Capital Markets Sensitisation Session

He noted that members will have access to a wide range of financial reports that equip them with extensive knowledge and enable them to make informed decisions, as well as access to NG Clearing’s bespoke clearing and settlement software application which will support the clearing and settlement of derivative instruments across various asset classes i.e., futures and options contracts on indices, equity shares, commodities, currency, rates etc.

“NG Clearing shall be playing a key role in the financial market ecosystem in the region, upholding stability and safety of the marketplace, through an efficient and timely settlement of derivative trades.

ALSO READ  Acting SEC DG Vows to Prioritise Workers’ Welfare

“The aim is to strengthen the country’s investment environment through solutions that systematically reduce risks, enhance operating efficiency, and minimize costs for all market participants, thereby serving as a catalyst to national development,” he stated.

NG Clearing is promoted by the Nigerian Exchange Group Plc and Central Securities Clearing System (CSCS) Plc along with key stakeholders, including Nigeria Sovereign Investment Authority (NSIA), Access Bank Plc, Consonance Kuramo Special Opportunities Fund I, Coronation Merchant Bank Limited, Greenwich Merchant Bank Limited, Union Bank of Nigeria Plc, United Bank for Africa Plc (UBA) and Association of Securities Dealing Houses of Nigeria (ASHON).

Continue Reading

Economy

CSCS, NGX Lift OTC Exchange by 0.77% After Holiday

Published

on

Regconnect CSCS

By Adedapo Adesanya

Appreciation in the stock prices of Central Securities Clearing Systems (CSCS) Plc and the Nigerian Exchange (NGX) Group Plc ensured that the bulls remained on the floor of the NASD Over-the-Counter (OTC) Securities Exchange on Tuesday.

It was the first trading session at the OTC Exchange after the public holiday observed on Monday to celebrate Democracy Day in Nigeria. The unlisted securities market appreciated by 0.77 per cent yesterday.

During the session, shares of CSCS increased by 68 kobo or 3.6 per cent to sell at N18.68 per unit compared to N18 per unit of the previous session, while the NGX Group gained 15 kobo or 0.8 per cent to sell for N20.04 per share versus the previous N19.89 per share.

ALSO READ  How 5G Will Impact Nigeria’s Business Sector in 2021?

The gains recorded by the two securities expanded the market capitalisation of the bourse by N4.09 billion to close at N534.49 billion in contrast to N530.40 billion it ended last Friday.

Also, the NASD Unlisted Security Index (NSI) increased by 5.76 points during the session to finish at 751.95 points as against 746.19 points of the previous session.

ALSO READ  Linkage Assurance Plc to File 2016 Financial Results Before June 29

During the session, investors increased the volume of securities traded by 75.8 per cent to 6.5 million units from 3.7 million units, while the value of the trades rose by 74.1 per cent to N129.2 million from N74.2 million, with the number of deals rising by 17.2 per cent to 34 deals from 29 deals.

NGX Group was the most active stock by (year-to-date) with the sale of 266.3 million units worth N6.0 billion, followed by Swap Technologies & Telecomms Plc with 46.6 million units worth N41.0 million and CSCS Plc with 30.9 million units worth N483.3 million.

ALSO READ  Continental Reinsurance Posts N3.1b Profit in 2016

Also, NGX Group was the most active stock by value on a year-to-date basis with the sale of 266.3 million units worth N6.0 billion, followed by Niger Delta Exploration and Production (NDEP) Plc with 2.9 million units valued at N900.5 million and FrieslandCampina WAMCO Nigeria with 5.9 million units valued at N750.4 million.

Continue Reading

Like Our Facebook Page

Latest News on Business Post

Trending

%d bloggers like this: