Economy
Supply Restrictions from Iraq, Libya Buoys Oil Prices
By Adedapo Adesanya
Oil prices returned to the positive territory on Monday as a result of by supply restrictions reports from Iraq and Libya.
It was reported that Iraq, a top oil giant, was planning to cut production, while reports also emanated from Libya that a pay dispute has caused disruptions in the production of the commodity.
These reports offered more support to the price of crude oil at the global market yesterday as the Brent crude futures rose by 48 cents or 0.87 per cent to trade at $55.87 per barrel, while the West Texas Intermediate (WTI) crude futures improved by 54 cents or 1.01 per cent to sell at $52.80 per barrel.
Iraq, a key laggard under the agreement by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), plans to produce 3.6 million barrels a day of oil in January and February, news reports said, which would fall below the 3.86 million barrels a day allowed.
OPEC+ agreed in April last year to slash output and bolster oil prices, which had been hammered by the spread of the coronavirus. Iraq and other members, including Nigeria, have constantly faced criticism for pumping above their caps and called on them to make compensatory cuts.
With this move, Iraq has shown that it is still committed to the OPEC+ deal, which runs until next year.
Its decision to pump less oil follows a similar action by Saudi Arabia earlier this month. With the virus still raging, the kingdom said it would reduce production in February and March by one million barrels daily, a surprise move that caused oil prices to rise.
The oil market can only benefit from more production curtailments as bearish signals are coming from the demand front, with COVID-19 infections continue to expand globally.
Also providing support on Monday were reports that Libya’s Petroleum Facilities Guard halted all oil exports from the ports of Ras Lanuf, Es Sider and Hariga due to a pay dispute.
Libya had previously seen a recovery in oil output, producing more than 1.2 million barrels a day in December after producing less than 100,000 barrels a day in August, a move that threatened oil prices.
Libya resumed oil exports in September after a blockade of ports and oilfields by Haftar’s forces ended. According to the country’s National Oil Corporation, Libya produces 1.25 million barrels of crude oil per day, this means that the halt would reduce the amount of oil pumped into the market.
Investors also showed confidence as US President Joe Biden continue to push for quick approval of his proposed $1.9 trillion pandemic relief package.
In the latest round of discussion, officials in Mr Biden’s administration on a Sunday call with Republican and Democratic lawmakers tried to head off Republican concerns that his pandemic relief proposal was too expensive.
Meanwhile, the expanding lockdowns in China, the world’s second-largest oil consumer and largest importer continue to worry investors.
The country’s National Health Commission reported 124 new cases of confirmed infections, up from 80 a day earlier with a tally of 15 serious cases reported on Sunday. This increase added to oil demand fears as the country tightened lockdowns and imposed restrictions to battle the spread of the virus.
Meanwhile, some European countries like the UK, France and Spain are also preparing to take additional measures by prolonging and tightening lockdowns to combat the resurgence in cases. Spain reported 42,885 more coronavirus infections, the second-highest daily surge since the pandemic began.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn