US, China Sluggish Energy Outlook Depress Oil Prices

Image

By Adedapo Adesanya

Oil prices fell further on Thursday touching a six-month low, as investors worried about sluggish energy demand in the United States and China.

Brent crude futures dropped 48 cents to $73.82 a barrel and the US West Texas Intermediate (WTI) crude futures fell by 33 cents to $69.05 per barrel, with both benchmarks posting their lowest prices since late June.

Analysts noted that the largest global importer of oil, China, is shuttering its interests in crude and this has created pressure on prices.

Chinese customs data showed that crude oil imports in November fell 9 per cent from a year earlier as high inventory levels, weak economic indicators, and slowing orders from independent refiners weakened demand.

While China’s total imports dropped month-on-month, its exports rose in the month for the first time in six months, suggesting an uptick in global trade flows may be helping the manufacturing sector.

However, ratings agency, Moody’s, put many of China’s state-owned companies and banks on downgrade warnings on Wednesday, a day after it put a downgrade warning on China’s sovereign credit rating.

This is happening as the largest producer, the United States, continues with headline output as output remained near record highs of over 13 million barrels per day, according to the US Energy Information Administration (EIA) data showed on Wednesday.

US gasoline stocks rose by 5.4 million barrels last week to 223.6 million barrels, the EIA said, more than 500 per cent higher than the 1 million barrel build that had been expected.

Prices have failed to be propped up by moves made by the Organisation of the Petroleum Exporting Countries (OPEC) and allies, OPEC+, which last week announced a combined 2.2 million barrels per day in voluntary output cuts for the first quarter of next year.

In fact, oil prices have fallen by about 10 per cent since the announcement indicating that the market seems to be suggesting that they don’t believe OPEC+ can follow through on their cuts.

Saudi Arabia and Russia, the two biggest oil exporters, on Thursday called for all OPEC+ members to join an agreement on output cuts for the good of the global economy.

Russian President, Mr Vladimir Putin, and Saudi Crown Prince, Mr Mohammed bin Salman, met on Wednesday to discuss further oil price cooperation, while OPEC+ member Algeria said it would not rule out extending or deepening oil supply cuts.

Share
Related Stories
Image
22-February-2024

Investors Recover N165bn as FBN Holdings, BUA Cement, Others Gain

By Dipo Olowookere The bulls recaptured the Nigerian Exchange (NGX) Limited on Wednesday after the bears dominated for two straight days as a result of panic selling due to the macroeconomic environment, especially with the poor performance of the Naira in the foreign exchange (FX) market. During the midweek session, the local bourse finished higher by 0.30 per cent on renewed bargain-hunting activities by investors. This raised the market capitalisation of the domestic exchange by N165 billion to N55.464 trillion from N55.299 trillion, as the All-Share Index (ASI) grew by 301.71 points to 101,362.38 points from 101,060.67 points. Business Post

Image
21-February-2024

Oil Prices Slide on Global Demand Worries

By Adedapo Adesanya Oil prices settled lower on Tuesday, with worries about global demand offsetting price support from the Israel-Hamas conflict, causing the Brent futures to lose $1.22 or 1.5 per cent to sell at $82.34 a barrel, as the US West Texas Intermediate (WTI) crude shed $1.30 or 1.4 per cent to trade at $77.04 a barrel. The crude oil market was lower following the quiet trading over the Presidents’ Day holiday in the US and as demand concerns offset ongoing Middle Eastern geopolitical tensions. Shipping has been impacted by escalating attacks on shipping lanes in the Red Sea

More Stories
Image
19-August-2021

FG Seeks Private Sector’s Involvement in Vaccine Production

By Sodeinde Temidayo David The federal government has once again called on the private sector to provide support in vaccine production, even as it also lauded the efforts of the sector to support its response to COVID-19. The Vice President, Mr Yemi Osinbajo, represented by the Director-General of Nigeria Centre for Disease Control (NCDC), Dr Chikwe Ihekweazu, said this at the Guild of Medical Laboratory Directors’ 23rd National Conference and Annual General Meeting in Abuja, on Wednesday. He said, “We keep learning from our successes and challenges and strategising on ways for better preparedness for other emerging diseases. “The pandemic

Image
26-May-2021

Nipco Recommends N3 Dividend to Shareholders

By Adedapo Adesanya Nipco Plc has proposed the payment of N3 as a final dividend to its shareholders for the 2020 financial year. This was disclosed by the company in a notice on Tuesday to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities. The payment will be subject to approval at the 17th Annual General Meeting (AGM) of the company scheduled for Wednesday, June 2. According to the oil and gas investment company, its AGM will hold at the Lagos Hall of Transcorp Hilton, located on 1, Aguiyi Ironsi Street, Maitama, Abuja at 11:00 a.m. If the

Image
05-January-2022

Ecobank Elevates Group Chief Risk Officer Eric Odhiambo

By Aduragbemi Omiyale The Group Chief Risk Officer of Ecobank Group, Mr Eric Odhiambo, has been elevated to the position of the Group Executive in charge of Corporate and Investment Banking. The promotion of the Kenyan-born banker was a result of the retirement of Nigerian-born Mr Akin Dada, who clocked 60 and is in line with the group’s succession plan. “Eric is a vastly knowledgeable banker with strong expertise in business development, credit structuring and understanding as well as risk management. “He has immense capacity to ensure the realisation of the strategic goals of our Corporate & Investment Banking business

Image
12-April-2019

Market Capitalisation Returns to N11trn After N58bn Gain

By Dipo Olowookere The market capitalisation of companies listed on the Nigerian Stock Exchange (NSE) closed above N11 trillion on Thursday after appreciating by N58 billion. The total value of the listed equities had slipped to the N10 trillion region this Monday, but the 0.53 percent further gained by the local bourse pushed it up above N11 trillion yesterday. At the close of business, the market cap closed at N11.023 trillion in contrast to N10.965 trillion of the previous session. In the same vein, the All-Share Index (ASI) increased on Thursday by 154.20 points to settle at 29,347.62 points from

Image
15-May-2019

Contract Dispute: British Firm Offers FG Olive Branch as Judgment Debt Hits $9bn

Nigeria stands to lose up to $9 billion worth of its foreign assets following an enforcement application to US and UK courts by Process and Industrial Development (P&ID), a British firm tied up in a legal dispute with the Federal Government. The court case arose out of the failure of a contract awarded the company in 2010 to process wet gas to power Nigeria’s generating plants. In January 2017, a London tribunal, organized under the rules of the Nigeria Arbitration and Conciliation Act, ordered Nigeria to pay P&ID $6 billion in damages, plus $2.3 million in uncollected interest. That figure

Image
28-April-2021

Senate Empowers AMCON to Seize Debtors’ Assets

By Aduragbemi Omiyale The powers of the Asset Management Corporation of Nigeria (AMCON) have been expanded following the passage of the Asset Management Corporation of Nigeria Amendment bill on Wednesday by the Senate. The passage of the piece of legislature will empower the agency to seize assets belonging to debtors even if it was not used as collateral for securing a loan. AMCON was established by the federal government to buy over bad debts and it was because of the rising non-performing loans (NPLs) in the banking sector in Nigeria some years ago. The government, worried that bad debts could

Image
10-March-2023

NASD Unlisted Securities Index Appreciates by 0.08%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange continued in the green zone on Thursday, March 9 as it appreciated by 0.08 per cent at the close of transactions. This pushed the NASD Unlisted Securities Index (NSI) higher during the trading day by 0.6 points to wrap the session at 719.83 points compared with 719.23 points in the previous session. Also, the marginal growth raised the value of the unlisted securities market by N800 million to settle at N945.87 billion compared with Wednesday’s closing value of N945.07 billion. Business Post reports that the improvement witnessed at the alternation bourse

Image
19-December-2022

Olam Agri Invests in Innovative Food Production Processes

By Modupe Ggbadeyanka To enable Nigerians to enjoy quality, nutritious and affordable foods, a leading agribusiness in food, feed and fibre, Olam Agri, said it is investing in innovative food production processes and food fortification facilities such as Vitamin Premix. The Country Head of Olam Agri Nigeria, Mr Ashish Pande, said this was why the company established the Seeds for the Future initiative, a multi-million naira, multi-year value chain intervention project targeted at driving Nigeria closer to attaining wheat production self-sufficiency. The initiative was initially launched in 2021 but has since been scaled into a full-fledged foundation focusing on supporting

Ad
Ad
Recent Stories
Image
22-February-2024

Nigeria Posts 2.74% GDP Growth in 2023

By Adedapo Adesanya Nigeria’s economy grew by 2.74 per cent in 2023, lower than the 3.1 per cent posted in 2022. This was disclosed by the National Bureau of Statistics (NBS) in its latest Nigeria Gross Domestic Product Q4 2023 Report released on Thursday. While the country’s economic growth was lower than the preceding year, it grew by 3.46 per cent (year-on-year) in real terms in the fourth quarter of 2023. This growth rate is lower than the 3.52 per cent recorded in the fourth quarter of 2022 and higher than the third quarter of 2023 growth of 2.54 per

Image
22-February-2024

Nashaira Belisa Takes Project OMI to Lagos Orphanage, School

By Adedapo Adesanya  Miss World Curacao 2024, and Curaçao’s delegate to Miss World 2024 in India, Miss Nashaira Belisa, an influential humanitarian and businesswoman, has launched PROJECT OMI. OMI, meaning water in the Yoruba Language, is a transformative initiative focused on addressing the critical need for clean water in orphanages and communities across Nigeria and Ghana. She is using this initiative to change the world, one drop of water at a time. The project, aptly named OMI, is a testament to Belisa’s commitment to making a lasting impact beyond the realm of beauty pageantry. Belisa’s dedication to clean water accessibility

Image
22-February-2024

Senate Confirms Cardoso, Yuguda, 10 Others as CBN MPC Members

By Adedapo Adesanya The Senate has confirmed the appointment of 12 persons as members of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) ahead of next week’s eagerly awaited interest rate-setting meeting. This confirmation comes after a report of the Committee on Banking, Insurance and other Financial Institutions was considered during plenary on Thursday. The confirmation of the new MPC members comes days before the first policy meeting of the apex bank under the new CBN governor, Mr Olayemi Cardoso, who by his position will be the chairman of the committee. The meeting has been slated

Image
22-February-2024

Purple Real Estate Welcomes Umar, Oladimeji to Board

By Adedapo Adesanya Nigerian real estate platform, Purple Real Estate Income Plc, has made significant changes to its board, marking a pivotal moment in the company’s growth strategy amid current macro headwinds. The reshuffle brings on Mr Aminu Umar and Mr Olasunkanmi Oladimeji to join the board as Non-Executive Director and Executive Director. The duo of Mr Umar and Mr Oladimeji will take over from Mrs Osareme Archibong and Mrs Fiona Ahimie, both outgoing Independent Non-Executive Directors, according to notice on NASD OTC Securities Exchange, where the company trades its securities. Commenting on the changes, the Chairman of the board,

Image
22-February-2024

AFCON 2023: Nigerian Content Creators See 200% Rise in Revenue, Views

By Adedapo Adesanya Content creators in Nigeria saw a 200 per cent increase in views and revenue between December 2023 and February 2024, a new study shared with Business Post showed. According to new data released by StarNews Mobile, an African video streaming platform, content creators across Africa experienced a 300 per cent surge in revenues during the 2023 Africa Cup of Nations (AFCON) held between January 13 and February 11, 2024, reaffirming the massive surge in consumption of hyper-localized content from the continent. Based on metrics from StarNews Mobile’s platform, creators in Nigeria were only outshone by their peers

Image
22-February-2024

Two Die, 15 Rescued in Ikoyi-Lekki Link Bridge Boat Mishap

By Modupe Gbadeyanka Two persons have been confirmed dead in a boat accident that occurred on Wednesday night at the Ikoyi-Lekki Link bridge in Lagos. The Lagos State Emergency Management Agency (LASEMA), which confirmed the incident, stated that 15 persons were rescued in the mishap. The agency stated that the boat, which was conveying 17 passengers, was heading to the Ikorodu area of the metropolis from its take-off point, Sandfil, when it capsized at the Powerline area of the popular bridge. It said the body of a female passenger, who drowned, was recovered, while the corpse of the male passenger

Image
22-February-2024

NPPAN Targets $10bn Contribution to Nigeria’s GDP via Palm Biomass

By Adedapo Adesanya The federal government will sign a Memorandum of Understanding (MoU) with the Malaysian government to develop palm biomass in the country as part of efforts to utilise one of the undertapped farm produces in the country. Mr Alphosus Inyang, President of the National Palm Produce Association of Nigeria (NPPAN), made this disclosure, saying palm biomass is a multi-billion dollar economy. “Biomass simply means agricultural waste and we are talking about turning waste into wealth,’’ he said in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja. The president said NPPAN was working with

Image
22-February-2024

Salesforce Introduces Clean Energy Programme Management

By Modupe Gbadeyanka A new solution to help electric, gas, and water utilities increase customer participation in clean energy programmes has been introduced by Salesforce. The initiative known as Clean Energy Programme Management for Energy & Utilities Cloud streamlines the launch, management, and oversight of energy efficiency, conservation, electrification, and EV charging programs. It helps utilities manage clean energy initiatives with connected data — like energy usage and billing information — and personalised engagement to promote relevant programmes. This platform also digitises and simplifies the application process for customers, participating contractors, and utility program staff to help increase clean energy

Image
22-February-2024

Dangote Sugar to Borrow N50bn from Commercial Paper Sales

By Aduragbemi Omiyale The management of Dangote Sugar Refinery Plc is requesting about N50 billion from capital market investors for its short-term working capital and funding requirements. The sugar miller will get the funds from investors through the sale of commercial papers and has promised to repay in about nine months’ time. The CP sales will be conducted under its N150 billion commercial paper issuance programme approved by the regulatory authorities. It is the first series the company is selling this time and it specifically has a tenor of 266 days with a discount rate of 15.92 per cent and

Image
22-February-2024

NASD Unlisted Security Index Depreciates by 0.77%

By Adedapo Adesanya A 0.77 per cent loss was suffered by the NASD Over-the-Counter (OTC) Securities Exchange on Wednesday, February 21 following profit-taking in three stocks. Aradel Holdings Plc went down by N49.50 during the session to close at N2,476.50 per share versus the previous day’s N2,526.00 per share, Central Securities Clearing System (CSCS) Plc depreciated by 37 Kobo to end the day at N19.63 per unit compared with Tueday’s closing price of N20.00 per unit, and FrieslandCampina Wamco Nigeria Plc deflated by 7 Kobo to settle at N74.43 per share, in contrast to the N74.50 per share it traded