By Adedapo Adesanya

Oil gained on Thursday as investors weighed concerns about global oversupply with looming sanctions against Russia’s Lukoil.

The price of the Brent crude grade chalked up 30 cents or 0.5 per cent to $63.01 a barrel, and the US West Texas Intermediate (WTI) crude increased by 20 cents or 0.3 per cent to $58.69 a barrel.

The US has imposed sanctions on Lukoil as part of its efforts to bring the Russian government to peace talks with Ukraine. The sanctions prohibit transactions with the Russian company after November 21.

According to JPMorgan, nearly a third of Russia’s current seaborne oil export potential is now stuck in tankers as the US sanctions upend crude flows and Russia’s top buyers, China and India, are still struggling to assess the implications of the sanctions.

“Russia’s oil exports are entering a new phase of disruption as sanctions targeting Rosneft and Lukoil are set to take effect, prompting its two largest customers — India and China — to sharply reduce their December purchases,” the Wall Street bank said in a note.

JPMorgan estimates that as many as 1.4 million barrels per day of Russian crude oil or nearly a third of its exporting potential are on tankers at present, amid re-routing and slowed unloading as buyers are hesitant following the US sanctions on Russia’s top oil producers and exporters, Rosneft and Lukoil.

Also, the US Energy Information Administration (EIA) showed a larger-than-expected rise in US crude stocks, while gasoline and distillate inventories fell less than expected last week. Crude inventories rose by 6.4 million barrels to 427.6 million barrels in the week ended November 7, the EIA said.

The Organisation of the Petroleum Exporting Countries (OPEC) said global oil supplies would slightly exceed demand in 2026, a further shift from the group’s earlier projections of a deficit.

It also said it expected the supply surplus next year because of wider production increases by OPEC+, a group of producers that includes OPEC members and allies like Russia.

The International Energy Agency (EIA) raised its global oil supply growth forecasts for this year and next in its monthly oil market report on Thursday, signaling a bigger surplus in 2026.

The US EIA also said in its Short-Term Energy Outlook on Wednesday that U.S. oil production is expected to set a larger record this year than previously forecast.

Global oil inventories will grow through 2026 as production increases faster than demand for petroleum fuels, adding to pressure on oil prices, the EIA added.

By Dipo Olowookere

The bulls tightened their grip on the local bourse by 1.08 per cent on Thursday as investors mopped up shares selling at attractive prices.

On Wednesday, the Nigerian Exchange (NGX) rebounded after enduring a series of losses due to a special interest of the United States in the incessant attacks on Christians in the country by some alleged Islamic terrorists.

However, clarity in the implementation of the controversial capital gains tax (CGT) by the Minister of Finance, Mr Wale Edun, on Tuesday, triggered a fresh round of buying pressure.

Yesterday, apart from the industrial goods space, which lost 0.09 per cent and the commodity index, which closed flat, every other sector ended in green.

The insurance counter appreciated by 4.58 per cent, the banking industry improved by 3.80 per cent, the consumer goods space rose by 1.73 per cent, and the energy sector grew by 0.65 per cent.

Consequently, the All-Share Index (ASI) went up by 1,577.34 points to 146,981.17 points from 145,403.83 points and the market capitalisation soared by N1.003 trillion to N93.481 trillion from N92.478 trillion.

Linkage Assurance advanced by 10.00 per cent to N1.76, Custodian Investment also surged by 10.00 per cent to N38.50, Oando increased by 9.97 per cent to N43.55, Legend Internet expanded by 9.96 per cent to N5.74, and NAHCO jumped by 9.96 per cent to N106.55.

Conversely, Austin Laz lost 9.96 per cent to sell for N2.35, Union Dicon declined by 9.68 per cent to N7.00, Sterling Holdings shed 5.81 per cent to N7.30, NGX Group crashed by 5.31 per cent to N52.60, and Guinness Nigeria depleted by 5.14 per cent to N166.00.

Business Post reports that 55 equities ended on the advancers’ chart and 10 equities finished on the decliners’ table, indicating a positive market breadth index and strong investor sentiment.

However, the level of activity was lower than the preceding session as the trading volume, value, and number of deals went down by 25.63 per cent, 53.32 per cent and 3.40 per cent, respectively.

This was because traders transacted 599.7 million shares worth N22.7 billion in 23,675 deals during the trading day versus the 806.4 million shares valued at N50.8 billion traded in 24,509 deals at midweek.

Wema Bank was the busiest yesterday with 98.4 million units sold for N2.0 billion, UBA transacted 53.0 million units worth N2.2 billion, Access Holdings exchanged 50.9 million units valued at N1.2 billion, Fidelity Bank traded 41.2 million units for N784.0 million, and Zenith Bank transacted 40.8 million units valued at N2.6 billion.

By Aduragbemi Omiyale

The decision of the federal government to suspend the implementation of the 15 per cent import duty on Premium Motor Spirit (PMS) and diesel imports has not gone down well with the Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA).

The group faulted the federal government’s decision to set aside the policy, warning it could slow down the nation’s progress toward energy independence and weaken investor confidence in the refining sector.

“The suspension of the 15 percent fuel import tariff is disappointing. The policy was a step in the right direction to promote local refining, reduce dependence on imports, conserve foreign exchange, and create a fair competitive environment for domestic producers.

“Its reversal sends a wrong signal to investors who have shown confidence in Nigeria’s energy sector,” the president of OGUNCCIMA, Mr Niyi Oshiyemi, stated.

On Thursday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the suspension of the controversial policy.

For OGUNCCIMA, this is a setback to Nigeria’s economic reform drive and a missed opportunity to protect local refiners, particularly the Dangote Refinery and other modular refining initiatives.

According to Mr Oshiyemi, the tariff would have helped to stabilize the Naira by curbing excessive demand for foreign exchange used in fuel importation, adding that local refineries need firm policy backing to thrive, warning that continuous reliance on imported fuel would make the economy vulnerable to external shocks.

“The Dangote Refinery alone has the capacity to meet Nigeria’s domestic fuel needs and even export to other African countries. Supporting such investments with protective policies like the import tariff is not just economic common sense; it is a matter of national interest,” he stated.

The OGUNCCIMA leader urged the central government to reconsider its decision and reintroduce the policy after consultations with key stakeholders in the oil and gas industry, emphasising that sustainable industrial growth requires consistency in policy direction, noting that frequent policy reversals discourage private sector participation and hinder long-term development.

While acknowledging the government’s concern about potential short-term price increases, Mr Oshiyemi maintained that the long-term gains including job creation, forex savings, and increased energy security far outweigh any temporary inconvenience, reaffirming the organisation’s commitment to advocating policies that protect local industries and promote economic diversification.

“We believe in reforms that empower Nigerian investors and strengthen our productive base. The 15 percent tariff was one of such reforms, and we urge the government to revisit it in the national interest,” he said.