Oil and Gas
Oil Price falls in the wake of second coronavirus wave
Oil prices fell, on Wednesday, as potential OPEC+ plans to deepen supply cuts were overshadowed by demand concerns exacerbated by a possible second wave of coronavirus infections as countries ease lockdowns. adsbygoogle || []).push({}); js">
Brent crude LCOc1 dropped 56 cents, or 1.9 per cent, to $29.42 a barrel by 0855 GMT, having risen 1.2 per cent on Tuesday.
West Texas Intermediate crude futures fell 23 cents, or 0.9 per cent, to $25.55 after gaining 6.8 per cent in the previous session.
“Fears are running rife that easing lockdown measures will trigger a second wave of coronavirus infections,’’ said Stephen Brennoc at oil brokerage PVM.
The U.S. infectious disease expert, Anthony Fauci, on Tuesday told the Congress that easing coronavirus lockdowns could set off new outbreaks of the COVID-19 disease that has killed 80,000 Americans and badly damaged the world’s biggest economy and oil consumer.
New outbreaks have been reported in South Korea and China, where the health crisis started before spreading across the globe, prompting governments to lock down billions of people, devastating economies and demand for oil.
The U.S. Energy Information Administration (EIA) now expects world oil demand to fall by 8.1 million barrels per day (bpd) this year to 92.6 million bpd, compared with a previous forecast for a drop of 5.2 million bpd.
The agency also expects the U.S. output to fall by 540,000 bpd, against a previous forecast of 470,000 bpd.
It expects global output of 11.7 million bpd this year and 10.9 million bpd in 2021.
On the supply side, OPEC+ is looking to maintain existing cuts beyond June, when it meets next in Vienna, sources told Reuters.
The Organisation of the Petroleum Exporting Countries (OPEC) and other producers including Russia – a group known as OPEC+ – agreed to cut output by 9.7 million bpd in May and June and to scale back cuts to 7.7 million bpd for the rest of the year.
Saudi Arabia’s cabinet has urged OPEC+ countries to reduce output further to restore balance in global crude markets, the country’s state news agency reported early on Wednesday.
Riyadh said it would add to planned cuts by reducing production by a further one million bpd next month, bringing output down to 7.5 million bpd.
“Suffice to say, the tug-of-war between OPEC-led cuts and virus anxieties will limit upside price potential,’’ PVM’s Brennoc said.
In the U.S., crude oil inventories rose by 7.6 million barrels last week to 526.2 million barrels, against analyst expectations for an increase of 4.1 million barrels, the American Petroleum Institute (API) said on Tuesday.
Still, stocks of crude at the Cushing delivery hub in Oklahoma fell by 2.3 million barrels, API said.
If confirmed by official data, that would be the first drawdown since February, ING Economics said.
“Concerns over hitting storage capacity have eased, as we see demand gradually recovering, along with supply cuts hitting the market,’’ ING said in a note, pointing to the decline in Cushing stocks.
Official EIA storage data is due later on Wednesday. (Reuters/NAN)
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Business and Economy
Crude oil sales in naira: when it will begin…
Many have attributed the unstable prices of house commodities culminating in untold hardship to the fluctuating cost of fuel as a result of dollar fluctuation. This is as a result the sale by the Federal Government of Crude Oil to both foreign and local refineries.
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However, The Federal Government says it will begin crude oil sales in Naira to Dangote Refinery and others in October.
This is according to a statement by the Director Press and Public Relations, Federal Ministry of Finance and Economic Planning, Mr Mohammed Manga in Abuja on Monday, August 19th. 2024.
Manga said that the inaugural meeting with the implementation committee which was presided over by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun is to fast track the transaction.
“The Minister presided over a crucial meeting of the implementation committee on crude oil sales in Naira today.
“It is a significant step towards ensuring the speedy realisation of the presidential directive on crude oil sales in Naira with a view to enhancing Nigeria’s economic growth and development,” he said.
He said that the committee reviewed progress on key initiatives, including the upcoming commencement of Naira payments for crude oil sales to the Dangote Refinery starting from Oct. 1.
According to him, key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN).
He said that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).and the African Export-Import Bank (Afreximbank).were also. assigned roles to ensure smooth implementation.
“Updates on the Port Harcourt and Dangote Refineries were also provided, with significant production increases expected from November,” he said.
Meanwhile, Edun said that the transaction would mark a significant milestone in country’s economic transformation.
He emphasised the need for transparency and directed the Technical Sub-Committee to finalisr details as well as prepare a report for the president, confirming that his directives were on track for implementation from September.
“ With the implementation committee’s progress, Nigeria is poised to witness a seamless transition to Crude Oil Sales in Naira.
“The collaboration among stakeholders, including regulatory bodies and financial institutions, will ensure a transparent and efficient implementation process.
“As the country moves towards this significant economic milestone, the impact on Nigeria’s growth and development is expected to be profound, setting a new standard for economic prosperity,” he said.
Dr Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), and Chairman of the Technical Sub-Committee, reported that the first Premium Motor Spirit (PMS) delivery from Dangote is expected in September.
Source: NAN
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Oil and Gas
Senate To Commence Public Hearing As Nation Loses $9 billion yearly On Mineral Resources
The Senate Committee’s would commence a 3-day public hearing Monday 13th September, 2021 on mineral resources owing to smuggling and illegal mining in the country.
The motion that is sponsored by the former governor of Abia State and Senator representing Abia North Senatorial District, Orji Uzor Kalu would focus on smuggling and illegal mining across the mineral resources endowed States
The cost of smuggling and illegal mining of gold was put at about $9 billion yearly in Nigeria which the Nigerian Senate expressed concern through a motion.
Relevant government and regulatory agencies in the sector would be grilled in a public hearing that will be chaired by the Chairman, Senate Committee on Solid Minerals, Mines, Steel Development and Metallurgy, Tanko Al-Makura.
According to a notice signed by Al-Makura, the Committee extended invitations to state governors; Central Bank of Nigeria; ministers of Mines and Steel Development; Finance and Budget; DGs/CEOs of parastatals and agencies under the Ministry of Mines and Steel Development; Executive Secretary of NEITI; Nigeria Labour Congress, Nigeria Immigration, among others.
Senator Kalu who is also the Chief Whip of the Senate had disclosed in the motion that mineral deposits were capable of sustaining Nigeria’s gross earnings, if smuggling and illegal activities were contained in the sector noting that Nigeria loses an estimated $54 billion from 2012 to 2018.
The lawmaker lamented the activities of unlicensed miners and incessant smuggling of the solid minerals out of the country by middlemen given the huge revenue losses, adding that over 250,000 jobs could be generated with over $500 million royalties and taxes paid to the Federal Government.
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Oil and Gas
NCDMB, ITF train 255 youths in vocational skills
The Nigerian Content Development and Monitoring Board (NCDMB) has, in partnership with Industrial Training Fund (ITF), trained 255 youths in nine vocational skills.
The board disclosed this in a statement issued by its management, in Abuja, on Sunday 30th August, 2020. adsbygoogle || []).push({});
It said the six months training that was being funded by the NCDMB and would be conducted by the ITF would cover classroom and intensive practical exercises in Hospitality and Tourism, Mobile Phone Repairs and Troubleshooting.
Others areas of interest, it said, include Information and Communication Technology, Electrical/Electronic Technology and Industrial Automation and Mechatronics.
Also, Instrumentation and Process Control, Mechanical Services & Maintenance, Residential Air-Conditioning and Refrigeration Maintenance and Building Technology.
It added that the beneficiaries were selected from the Board’s NOGIC-JQS platform, with representation from the six geo-political zones of the country.
”A further selection exercise was organised for the trainees, involving computer-based tests and oral interviews in Abuja, Lagos and Port Harcourt,” it added.
It quoted the Executive Secretary of NCDMB, Mr Simbi Wabote at the kick off ceremony as saying that the initiative was consistent with the objectives of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and NCDMB’s 10-Year Strategic Roadmap.
This, he said, targeted at growing Nigerian Content from 27 per cent in 2017 to 70 per cent by 2027.
“The Roadmap also aspires to retain over14billion dollars out of 20 billion dollars estimated annual industry spend in the country and create over 300,000 direct and indirect employment.
”The intent of the NCDMB/ITF collaboration is to close gaps in vocational and entrepreneurship skills among Nigerian youths, drive self-employment and value creation in the oil and gas industry.
“Also, linkage sectors and address youths’ redundancy and loss of economic value of human capital needed to drive economic growth.
‘Part of the goal is also to strengthen the linkage between the oil and gas industry and other sectors of the Nigerian economy and complement the Federal Government`s efforts towards job creation and diversification of the Nigerian economy,” he added.
Wabote further highlighted the premium NCDMB places on human capital development.
According to him, from the inception of the Board in 2010, over 9,000 Nigerians have benefitted from our training in various skill areas for graduates and artisans resulting in over 10 million training manhours.
He assured that NCDMB would continue its training interventions and widening its coverage to vocational and entrepreneurship skills, which are critical to the creation of employment, sustainable growth and diversification of the Nigerian economy.
He expressed delight over the Board’s partnership with ITF, which had excelled in the strategic role of leading the development of knowledge and skills in the various sectors of the Nigerian economy.
Source: NAN
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