Economy

Trade Deal, Possible OPEC+ Pull Out to Lift Oil Prices This Week

Published

6 years ago

30/12/2019

By Adedapo Adesanya

Prices of crude oil look strong this week at the global market following fresh optimism last week on the trade deal between the United States and China.

During trading last week, this pushed prices higher as futures post a fourth consecutive week of gains, indicating an aggregate of three months of gains.

As for the Brent Crude, it rallied to its highest level since September to $68 per barrel, though it later fell to $66, while the West Texas Intermediate posted more than 2 percent gains in all four weeks reaching as high as $62 per barrel.

This new week looks better for oil especially with the new year coming. This is expected to be buoyed by the possible signing of an agreement between the US and China in the coming weeks.

President Donald Trump made new comments saying that both countries would “very shortly” sign the phase one trade pact. He told reporters, “We will ultimately, yes, when we get together. And we’ll be having a quicker signing because we want to get it done. The deal is done, it’s just being translated right now.” This was then backed up from China’s action as it agreed to cut tariffs from December 26 on food items and some other imports.

Consideration is also on United State’s crude oil inventories, which fell more than expected last week. According to data sourced from the American Petroleum Institute (API), stocks fell by 7.9 million barrels to 441.1 million barrels, below expectations of 1.83 million barrels.

On its end, the Energy Information Administration (EIA) reported that US crude inventories fell by 5.5 million, a contrast to the API data, as they foresaw up to 3 million barrels decrease.

As the new week begins, investors will also be looking at any remark made concerning the OPEC+ output cut deal of up to 1.7 million barrels as there are strong indications that countries like Russia may soon choose to opt out of the deal to help stop an oversupply that could lead to lower prices in 2020.

Business Post had reported recently that the Russian Energy Minister, Alexander Novak remarked on the possibility of this, saying, “This is not an indefinite process. A decision on the exit should be gradually taken in order to keep up market share and so that our companies would be able to provide and implement their future projects.”

The OPEC alliance had on December 6 decided to extend production cuts, and alongside the optimism surrounding the US-China trade agreement, these decisions will likely spur the direction of oil prices this week with chances of the WTI and Brent futures reaching $62 and $68 respectively.

For the Nigerian crude futures, the Bonny Light, banking on this, may trade close to $69 per barrel, while Brass River and Qua Iboe, which both traded at the $69 mark, may push to $70 per barrel.

Economy

NGX Key Performance Indicators Rebound 0.04%

Published

37 minutes ago

17/01/2026

Dipo Olowookere

By Dipo Olowookere

About 0.04 per cent was recovered on Friday from the loss recorded by the Nigerian Exchange (NGX) the previous due to profit-taking.

Yesterday, investors were in the market with renewed vigour, mopping up stocks trading at relatively cheaper prices.

According to data, the insurance counter gained 0.41 per cent, the banking sector appreciated by 0.38 per cent, and the consumer goods index grew by 0.14 per cent.

The gains achieved by these three sectors were enough to lift Customs Street at the close of business despite the 0.26 per cent decline printed by the industrial goods segment and the 0.14 per cent loss suffered by the energy industry. The commodity counter was flat during the session.

A total of 43 equities gained weight on the last trading day of this week, while 26 equities shed weight, indicating a positive market breadth index and strong investor sentiment.

Red Star Express increased its share price by 10.00 per cent to N13.20, NCR Nigeria grew by 9.97 per cent to N128.55, SCOA Nigeria inflated by 9.96 per cent to N14.90, Omatek appreciated by 9.94 per cent to N1.77, and Deap Capital expanded by 9.85 per cent to N4.46.

On the flip side, McNichols decreased by 8.81 per cent to N6.00, Legend Internet crumbled by 7.56 per cent to N5.50, Cornerstone Insurance crashed by 6.48 per cent to N6.35, C&I Leasing contracted by 6.29 per cent to N8.20, and Austin Laz slipped by 5.78 per cent to N3.75.

Yesterday, 539.9 million shares valued at N16.7 billion were transacted in 48,023 deals versus the 1.0 billion shares worth N31.6 billion executed in 51,227 deals in the preceding day, implying a shrink in the trading volume, value, and number of deals by 46.01 per cent, 47.15 per cent, and 6.26 per cent apiece.

Zenith Bank was the most active for the day with 54.6 million stocks sold for N3.8 billion, Jaiz Bank traded 41.5 million units worth N359.4 million, Secure Electronic Technology transacted 37.7 million units valued at N39.2 million, Access Holdings exchanged 30.5 million units for N699.2 million, and Lasaco Assurance transacted 27.2 million units worth N68.3 million.

When the market closed for the day, the All-Share Index (ASI) went up by 72.21 points to 166,129.50 points from 166,057.29 points and the market capitalisation gained N31 billion to N106.354 trillion from N106.323 trillion.

Economy

Naira Trades N1,417/$1 at Official Market, N1,485/$1 at Black Market

Published

1 hour ago

17/01/2026

Adedapo Adesanya

By Adedapo Adesanya

It was a positive ending for the Naira this week after it further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, January 16 by N1.33 or 0.09 per cent to sell for N1,417.95/$1 compared with the previous day’s N1,419.28/$1.

The domestic currency also gained N2.41 against the Euro in the official market to close at N1,647.51/€1 versus the preceding session’s closing price of N1,649.92/€1, however, it suffered a N7.97 loss against the Pound Sterling in the same market window to trade at N1,901.32/£1, in contrast to Thursday’s closing price of N1,893.35/£1.

In the same vein, the Nigerian Naira depleted against the Dollar at the GTBank FX counter by N2 to quote at N1,427/$1 compared with the previous day’s N1,425/$1, but strengthened against the greenback at the black market yesterday by N5 to settle at N1,485/$1 versus the N1,490/$1 it was exchanged a day earlier.

Improved supply conditions helped keep the market within range as exporters’ and importers’ inflows in addition to non-bank corporate supply enhanced liquidity as the Central Bank of Nigeria (CBN) made no visible intervention.

Stronger external inflows from foreign portfolio investors (FPIs) and improving current account dynamics, continue to align with structural support in the wider economy.

Nigeria has seen projections of a stronger economic or gross domestic product (GDP) growth and lower inflation in 2026, with these forecasts citing improved macroeconomic fundamentals and reform impacts.

As for the cryptocurrency market, it was mixed following selloff in precious metals and lower US stocks appeared to be denting crypto sentiment.

Gold and silver, both of which also enjoyed big rallies earlier this week, tumbled 1.2 per cent and 5 per cent, respectively while key US stock indexes — the Nasdaq, S&P 500 and Dow Jones Industrial Average — all reversed from early gains to modest losses in Friday trade.

Dogecoin (DOGE) shrank by 2.2 per cent to $0.1370, Ripple (XRP) slipped by 0.8 per cent to $2.05, Ethereum (ETH) went down by 0.7 per cent to $3,228.56, and Bitcoin (BTC) slumped by 0.6 per cent to $95,086.80.

Conversely, Litecoin (LTC) appreciated by 3.2 per cent to $74.48, Solana (SOL) rose by 0.4 per cent to $143.70, Cardano (ADA) jumped by 0.2 per cent to $0.3942, and Binance Coin (BNB) increased by 0.1 per cent to $935.88, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.

Economy

Oil Prices Rise Amid Lingering Iran Worries

Published

2 hours ago

17/01/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil prices settled higher amid lingering worries about a possible US military strike against Iran, a decision that may still occur over the weekend.

Brent crude settled at $64.13 a barrel after going up by 37 cents or 0.58 per cent and the US West Texas Intermediate (WTI) crude finished at $59.44 a barrel after it gained 25 cents or 0.42 per cent.

The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.

Market analysts noted that it doesn’t seem likely anything will happen soon. However, the weekends have become the perfect time for actions so as not offset the markets.

The market had risen after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 per cent on Thursday as the American president said Iran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.

Iran produces approximately 3.2 million barrels per day, accounting for roughly 4 per cent of global crude production, so it was not a coincidence that markets rallied sharply through Tuesday and Wednesday as President Trump canceled meetings with Iranian officials and posted that “help is on its way” to Iranian protesters, raising fears of potential US military strikes that sent prices surging toward multi-month highs.

Weighing against those fears are potential supply increases from Venezuela.

The Trump administration is exploring plans to swap heavy Venezuelan crude for US medium sour barrels that can actually go straight into Strategic Petroleum Reserve (SPR) caverns, since not all all oil belongs in the reserve.

According to Reuters, the Department of Energy is considering moving Venezuelan heavy crude into commercial storage at the Louisiana Offshore Oil Port, while US producers deliver medium sour crude into the SPR in exchange.

Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.

Some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US.