Economy
OPEC+ Quota Increase Keeps Oil Market in Deficit—Analysts
By Adedapo Adesanya
The move by the Organisation of the Petroleum Exporting Countries and allies (OPEC+) to raise production limits by 400,000 barrels per day monthly from this month will leave the oil market in deficit at the end of 2021, research analysts at Merrill Lynch have said.
The analysts, Karen Kostanian and Ekaterina Smyk, noted that the move by the 23-member alliance was positive for oil in both the short and medium-term as a change in baseline production levels does not mean an immediate 1.6 million barrels per day hike from April 2022 and will mostly redistribute quotas within OPEC+.
“Production quotas may be adjusted on the way, while baseline production changes signal a general commitment from the key member.
“Production quotas may be adjusted on the way, while baseline production changes signal a general commitment from the key members,” they said.
Business Post had reported that last month, after a brief stalemate between Saudi Arabia and the United Arab Emirates (UAE), the members agreed to raise the output limit imposed on five countries, by phasing out 5.8 million barrels per day of oil production cuts by September 2022.
The analysts allayed concerns that oil prices would run into some turbulence post the latest OPEC+ agreement as the market feared upcoming supply hikes and importantly the select members potentially flooding the market in 2022 with cumulative 1.6 million barrels per day additions to baseline production levels.
Last week, oil settled lower with the Brent crude recording more than 7 per cent drop and the United States West Texas Intermediate (WTI) falling more than 5 per cent amid fears that the faster-spreading Delta variant would slow fuel demand in China and the rest of Asia.
Most oil market experts also believe that the OPEC deal last month, marking the end of a gridlock, will help cool prices which have climbed to 2-1/2year highs as the global economy recovers from the coronavirus pandemic.
As part of the latest agreement, Russia should be able to add 100,000 barrels per day each month starting from August (its 25 per cent share of OPEC+ quota) and its baseline production level will be increased from April 2022 by 500,000 barrels per day to 11.5 million barrels per day for crude only.
“First, the reversal of 500,000 barrels per day by the end of 2021 means oil production (crude + condensate) could reach almost 11 million barrels per day, just 3.0 per cent below pre-Covid levels.
“Should OPEC+ continue to add 400,000 barrels per day per month in Q1, Russia essentially would be allowed to fully restore production by the end of Q1 2022.
“Second, the baseline crude production of 11.5 million per day practically means that Russia would have to produce roughly 1 million barrels per day above its historical maximum,” Merrill Lynch analysts said.
“We hence believe that Russia is highly unlikely to reach its baseline levels on a 1 – 2 year horizon considering flat CAPEX levels over the past couple of years. The next big growth project is not expected to come online before the mid-2020s,” they said.
Bloomberg survey for OPEC production shows that the group increased crude production by 400,000 barrels per day month on month in July as part of the OPEC agreement to reverse 1.15 million barrels per day of the cuts through May-July.
Saudi Arabia led an increase adding close to 500 barrels per day which were offset by small declines in production across other producers while Iranian production was almost flat in July as it added 30,000 barrels per day.
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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