Economy

OPEC Forecasts Steeper Decline in Oil Demand

Published

4 years ago

13/08/2020

By Adedapo Adesanya

The Organization of the Petroleum Exporting Countries (OPEC) said that the world oil demand will fall by 9.1 million barrels per day this year, more than the 8.95 million barrels per day decline expected a month ago.

This was included in a monthly report released yesterday which showed an extension in the fall of demand by 100,000 a day from its July forecast due mainly to lower economic activity levels in developing economies.

The cartel, however, noted that demand in 2021 is expected to rise by 7 million barrels a day, unchanged from its July forecast.

On the supply side, OPEC revised up its forecast for 2020 non-OPEC liquids production growth by 235,000 barrels a day due to a better-than-expected recovery in the second half, leaving output on track for a 3.03 million barrel a day decline year over year.

As a result of the bearish forecast, the price of OPEC basket of 13 crudes dropped to $45.08 a barrel on Wednesday, compared with $45.21 recorded at the previous day, according to OPEC Secretariat calculations released on Thursday.

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

The indication from the latest data showed that world oil demand will fall more steeply in 2020 than previously forecasted due to the coronavirus and there are doubts about next year’s recovery.

This overtook news of a drop in crude inventories in the US which would normally have lifted prices.

According to the Energy Information Administration (EIA), crude inventories fell by 4.5 million barrels in the last one week, compared with analysts’ expectations for a 2.9-million-barrel drop.

In addition, US fuel demand rose to 19.37 million barrels per day last week, the highest since March while crude output dropped to 10.7 million barrels per day from 11 million barrels per day.

Support would also have come from the forecast that US crude production is projected to drop by 990,000 barrels a day this year to 11.26 million barrels daily steeper than the 600,000 barrels per day decline it forecast last month.

However, increasing uncertainty over a stalemate in Washington on a stimulus package to support recovery from the coronavirus pandemic weighed on prices, analysts said.

Economy

FG Offers N450bn Bonds For Sale

Published

3 hours ago

27/01/2025

Adedapo Adesanya

By Adedapo Adesanya

Nigeria, through the Debt Management Office (DMO), has offered three bonds for subscription to interested investors to the tune of N450 billion.

The DMO, in its offer circular on Monday, said that the first offer was an April 2029 FGN bond, valued at N100 billion at an interest rate of 19.30 per cent per annum. (5-year re-opening).

It listed the second offer as a February 2031 FGN bond valued at N150 billion at an interest rate of 18.50 per cent per annum. (7-year re-opening) and the third offer (January 2035 FGN bond) valued at N200 billion.

The auction date is January 27, and the settlement date is January 29, the notice stated.

According to the DMO, the FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million, and in multiples of N1,000 thereafter.

“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.

“Interest is payable semi-annually, while bullet repayment (principal sum) is on the maturity date, ” the DMO said.

It said that the bonds were backed by the full faith and credit of the Federal Government, and were charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among others.

“They are listed on the Nigeria Exchange Limited, ” it said.

It said that they qualified as liquid assets for liquidity ratio calculations for banks,” the debt office added.

Economy

Investments in Risevest, Stecs Risky—SEC Warns Nigerians

Published

4 hours ago

27/01/2025

Aduragbemi Omiyale

SEC strategic economic development goals

By Aduragbemi Omiyale

Nigerians have been warned against putting their hard-earned money in Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly known as Stecs, as they could lose their funds.

The capital market regulator in a circular in Abuja said investments in these entities, which it described as unregistered and unregulated, could expose investors to the risk of fraud and potential loss of investment.

SEC said Risevest and Stecs had not been authorised to carry out capital market operations in the country, and as such, investing in them was risky.

“The attention of the Securities and Exchange Commission has been drawn to the activities of Risevest (Victoria Island) Cooperative Multipurpose Society Limited, which is engaging in capital market activities by inviting the public to invest in its various investment schemes.

“The commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by them have not been authorized by the commission.

“Accordingly, the SEC advised the public to refrain from engaging with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market,” the notice read.

In the same vein, the agency said, “Our attention has been drawn to Stecs (Alausa) Multipurpose Cooperative Society (popularly known as Stecs), which is engaging in capital market activities by inviting the public to invest in its Stecs Commodity Mudarabah Investment Series I.

“The commission hereby notifies the public that Stecs (Alausa) Multipurpose Cooperative Society is not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by the cooperative society have not been authorized by the commission.”

“Accordingly, the public is advised to refrain from engaging with Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market.”

“The commission uses this medium to reiterate that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment.”

“The SEC remains committed to the protection of investors in the Nigerian capital market and is working diligently to combat the activities of illegal/unregistered entities.”

Economy

Value of Unlisted Securities Market Grows 65.1% in Week 4 of 2025

Published

4 hours ago

27/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange saw a 65.1 per cent boost in its market capitalisation in the fourth trading week of 2025, closing at N1.770 trillion compared with the N1.075 trillion it quoted in the preceding week (Week 3), as the NASD Unlisted Security Index (NSI) rose by 0.68 per cent or 21.29 points to 3,133.20 points from 3,111.91 points.

The sterling performance occurred amid a surge in the volume of transactions by 4,402.4 per cent to 425.3 million units from the 9.45 million units recorded in the previous week.

Equally, the total value of trades during the week jumped by 740.5 per cent to N410.5 million from the previous week’s N48.4 million, with these transactions carried out in 102 deals involving 16 stocks.

In the week, there were eight appreciating securities and four depreciating securities led by Impresit Bakolori Plc, which shed 9.5 per cent to end at 95 Kobo per share compared with N1.05 per share, Geo-Fluids Plc lost 6.8 per cent to close at N4.38 per unit versus N4.70 per share, FrieslandCampina Wamco Plc depreciated by 2.7 per cent to N38.58 per unit from N39.65 per unit, and UBN Property Plc, which slid by 1.4 per cent to N1.84 per unit from N2.20 per unit.

On the flip side, Okitipupa Plc gained 33.1 per cent to trade at N52.69 per share against the former value of N39.55 per share, Industrial and General Insurance (IGI) Plc expanded by 11.1 per cent to 40 Kobo per unit versus 36 Kobo per unit, Nipco Plc grew by 10 per cent to N165.11 per share from N150.10 per share, and Mixta Real Estate Plc rose by 9.7 per cent to N2.83 per unit from N2.58 per unit.

Further, Food Concepts Plc increased by 8.8 per cent to N1.74 per share from N1.60 per share, Access Bank jumped by 8.8 per cent to N19.30 per unit from N9.68 per unit, First Trust Microfinance Bank improved by 8.8 per cent to 39 Kobo per share from 37 Kobo per share, and Central Securities Clearing System (CSCS) Plc soared by 3.5 per cent to N24.00 per unit from N23.20 per unit.

The most traded stock for the week by value was Impresit Bakolori Plc with N386.5 million, FrieslandCampina Wamco Plc recorded N8.5 million, IGI Plc traded N7.04 million, 11 Plc recorded N2.7 million, and Okitipupa Plc posted N1.7 million.

Also, Impresit Bakolori Plc was the most traded stock by volume with 406.5 million units, IGI Plc transacted 17.5 million units, UBN Property Plc recorded 0.67 million, Mixta Real Estate Plc traded 0.27 million units, and FrieslandCampina Wamco Plc transacted 0.22 million units.