Economy

Resurgence of Coronavirus Cases to Affect Oil This Week

Published

6 years ago

15/06/2020

By Adedapo Adesanya

For the first time in six weeks, major oil benchmark closed last week facing south as a result of worries about rising crude inventories and a second wave of coronavirus cases.

Losing almost 11 percent in total last week, Brent crude oil, which hit $43 per barrel, finished at $38.73, down $3.57 or 9.22 percent, while the United States West Texas Intermediate (WTI) crude oil settled at $36.51 after going down by $3.29 or 8.27 percent.

Although the markets started out strong at the beginning of week on the back of the agreement of the Organisation of the Petroleum Exporting Countries (OPEC) to extend its output cuts. However, throughout the week, traders started to question demand, dampening the potentially bullish impact of the supply cut extension.

Also, among the major concerns were a gloomy outlook for the economy by the US Federal Reserve, worries over a surge in new COVID-19 cases and rising US supply which rose more than expected as data from the Energy Information Administration (EIA) revealed.

The US crude inventories rose unexpectedly by 5.7 million barrels in the week to June 5 to 538.1 million barrels – a record – as imports were boosted by the arrival of supplies bought by refiners when Saudi Arabia flooded the market with cheap oil in March and April, the EIA data showed.

The Federal Reserves economic outlook also remains bleak in the face of current global events. The agency said the US economy will shrink by 6.5 percent this year.

The US economy shrank by 5 percent in the first quarter of 2020, more than an advance estimate of a 4.8 percent contraction and ending the longest period of expansion in the country’s history.

It is the biggest drop in GDP since the last quarter of 2008 as the Covid-19 pandemic forced several states to impose lockdown measures in mid-March, throwing millions of people out of work, and affected basic needs.

Also last week, concerns over a surge in coronavirus cases raised the prospect of a second wave of the COVID-19 outbreak, hitting demand in the world’s top consumers of crude and fuel.

These factors overcame the extension of record oil production cut until the end of July that were meant to help stabilise prices. This points to the fact that traders are now more interested in the demand side of things than the supply end.

Looking forward this week, the rise in coronavirus cases and a possible second wave of infections is going to be the main price driver over the near-term.

The industry has a major supply-demand imbalance problem and as coronavirus cases rise, demand destruction worries will likely be the biggest influence on prices.

So far into the opening of the market, Brent crude is down 1.53 percent to $38.14 per barrel, while WTI crude is down 2.62 percent to $35.62 per barrel.

Economy

Customs Street Surges 0.28% Despite Persistent Weak Sentiment

Published

5 minutes ago

09/04/2026

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited rallied by 0.28 per cent on Wednesday despite weak investor sentiment, as the bourse ended with 18 price gainers and 38 price losers, implying a negative market breadth index.

The growth recorded yesterday by Customs Street was influenced by the 2.11 per cent rise posted by the energy index, and the 1.79 per cent jump achieved by the banking sector.

The other sectors experienced profit-taking, with the consumer goods losing 1.07 per cent, the insurance counter down by 0.36 per cent, and the industrial goods space down by 0.19 per cent.

Universal Insurance chalked up 10.00 per cent to sell for N1.21, Omatek improved by 9.78 per cent to N2.47, VFD Group expanded by 9.71 per cent to N11.30, CWG appreciated by 9.64 per cent to N21.05, and Livestock Feeds gained 9.56 per cent to close at N7.45.

On the flip side, UPDC REIT lost 10.00 per cent to settle at N6.75, Fortis Global Insurance shed 9.92 per cent to quote at N1.18, Deap Capital depreciated by 9.85 per cent to N5.40, Chams went down by 9.47 per cent to N3.06, and Japaul declined by 8.82 per cent to N3.10.

Yesterday, the All-Share Index (ASI) went up by 562.43 points to 202,585.53 points from 202,023.10 points, and the market capitalisation advanced by N389 billion to N130.404 trillion from N130.015 trillion.

During the session, 1.0 billion stocks worth N40.6 billion exchanged hands in 52,723 deals compared with the 1.1 billion stocks valued at N40.3 billion executed in 78,006 deals a day earlier, indicating an uptick in the trading value by 0.74 per cent, and a shortfall in the trading volume and number of deals by 9.09 per cent and 32.41 per cent apiece.

The activity chart was led by Access Holdings, which sold 233.0 million units valued at N6.1 billion, Fidelity Bank exchanged 113.1 million units worth N2.2 billion, Wema Bank recorded a turnover of 103.3 million units valued at N2.7 billion, Zenith Bank transacted 60.6 million units for N6.5 billion, and Chams traded 47.5 million units worth N154.6 million.

Economy

Crude Oil Slumps Amid Hopes of Strait of Hormuz Reopening

Published

36 minutes ago

09/04/2026

Adedapo Adesanya

By Adedapo Adesanya

Crude oil plummeted on Wednesday on hopes of the reopening of the Strait of Hormuz after US President Donald Trump agreed to a two-week ceasefire with Iran.

Brent crude futures moderated to $94.75 a barrel, while the US West Texas Intermediate (WTI) crude eased to $94.41 a barrel.

President Trump said on Wednesday that the US will work closely with Iran and will be talking about tariff and sanctions relief with Iran.

However, analysts cautioned that the ceasefire is a temporary two-week reprieve rather than a permanent resolution, and the global energy system remains fragile due to structural damage to regional infrastructure.

Reuters reported that Iran could open the strait in a limited and controlled way on Thursday or Friday ahead of a meeting between U.S. and Iranian officials in Pakistan.

Agence France-Presse (AFP) reported that two ships appeared to have transited the Strait of Hormuz since the US-Iran ceasefire deal. A Greek-owned bulk carrier and a Liberia-flagged vessel both transited the waterway early on Wednesday.

Meanwhile, Israel carried out its heaviest strikes on Lebanon since the conflict with Hezbollah broke out last month, even as the Iran-aligned group paused attacks on northern Israel and Israeli troops in Lebanon under the ceasefire.

Also, Saudi Arabia’s East-West Pipeline, a critical artery bypassing the Strait of Hormuz, was reportedly hit in an Iranian drone attack. Prior to the attack, the pipeline was pumping at its emergency capacity of 7 million barrels per day to bypass the shuttered strait.

The strikes occurred just hours after a US-Iran ceasefire announcement, which has so far failed to halt regional hostilities. Other facilities in the kingdom were also targeted in the wave of strikes, which the Islamic Revolutionary Guard Corps (IRGC) claimed included oil facilities owned by American companies in Yanbu.

US crude stocks rose by 3.1 million barrels to 464.7 million barrels during the week ended April 3, the Energy Information Administration (EIA) said.

Economy

Insurance Firms Must Submit 2025 Assessment Returns by May 31—NAICOM

Published

17 hours ago

08/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The National Insurance Commission has issued new guidelines for the collection, management, and administration of the Insurance Policyholders’ Protection Fund.

In a circular issued to all insurance institutions on Tuesday, the regulator also set May 31, 2026, as the deadline for insurers to submit their assessment returns for the 2025 financial year.

Recall that on August  5, 2025,  President Bola Tinubu signed  into  law  the  Nigerian  Insurance  Industry Reform  Act ( NIIRA 2025).

 This  landmark legislation  repeals  the  Insurance  Act  2003,  and  consolidates  related  provisions,  ushering  in  a  modern regulatory framework. It lays a strong foundation for sustainable growth and increased investment in the country’s insurance sector.

The commission said the guidelines were issued in exercise of its powers under the 2025 Act and other existing insurance laws and regulations to provide regulatory clarity, improve guidance, and ensure ease of compliance across the industry.

According to NAICOM, the guidelines establish a comprehensive structure for the operation of the IPPF, which serves as a statutory safety net to protect insurance policyholders in the event of distress or insolvency of a licensed insurer or reinsurer. The framework also provides direction on the reimbursement of loans by insurers and reinsurers.

NAICOM stated, “The guidelines ensure regulatory clarity, guidance and ease of compliance, as it provides a comprehensive regulatory framework for the collection, management, and administration of the Fund, which serves as a statutory safety net designed to protect insurance policyholders against distress and insolvency of a licensed insurer or reinsurer, including guidance for the reimbursement of loans by an insurer or reinsurer.

“Please be informed that the IPPF Assessment Returns in respect of the year 2025 shall be submitted to the Commission not later than 31st May 2026, while subsequent submissions shall be in line with Section 4.3 of the Guideline on Insurance Policyholders Protection Fund.”