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US Crude Stocks Rise by 1.3 Million Barrels

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Crude Stockpiles

Oil prices held gains after the U.S. Energy Information Administration reported a surprise build in crude stockpiles.

U.S. commercial crude inventories rose by 1.3 million barrels in the previous week to a total of 541.3 million barrels, EIA reported.

Crude inventories in the week to May 13 fell by 1.1 million barrels to 541.9 million while analysts had expected a fall of 2.8 million barrels, American Petroleum Institute (APP) data showed on Tuesday.

International Brent crude futures were trading 19 cents above their last settlement at $49.47 a barrel at 10:36 a.m. ET (1436 GMT). The contract hit a 2016 high of $49.75 in intra-day trade the previous day.

U.S. West Texas Intermediate crude futures were 28 cents higher at $48.59 a barrel, off a 2016 high of $48.76 per barrel struck on Tuesday.

Brent crude prices had seesawed on Wednesday as the impact of unplanned supply disruptions from Nigeria and Canada were tempered by rising supplies from elsewhere.

“The impact of the supply disruptions is clearly bigger than most analysts had expected,” ABN Amro chief energy economist Hans van Cleef said.

Unscheduled supply outages in Nigeria and Canada amounting to around 2 million barrels per day (bpd) have supported oil prices in recent weeks.

Unknown attackers have blown up a gas pipeline belonging to Italy’s ENI in Nigeria’s restive Niger Delta, residents said on Wednesday. The attack occurred in Bayelsa state, they said.

The incident follows earlier attacks on a Chevron offshore platform and a Royal Dutch Shell pipeline claimed by a new group of militants called the Niger Delta Avengers. This week, Nigeria’s oil minister said sabotage had reduced the country’s output by 800,000 bpd to 1.4 million bpd.

“Both fundamentals and technicals are lined up for a move through the $50 hurdle,” oil brokerage PVM said in a note on Wednesday.

But analysts warned that rising supplies from other countries could weigh on prices once supply disruptions ease.

“There is … plenty of supply upside elsewhere, particularly in Iran,” Vienna-based JBC Energy said in a note on Wednesday.

Data from Iran shows oil exports from the country are recovering faster than analysts had expected.

Exports from the OPEC member country are set to surge in May to 2.1 million bpd, nearly 60 percent above their level a year ago, with European shipments recovering to about half of their pre-sanction levels, according to a source with knowledge of the country’s crude lifting plans.

Saudi Arabia’s crude oil exports in March, however, fell slightly to 7.541 million bpd from 7.553 million in February, official data showed on Wednesday.

JBC also warned that a rise in oil prices towards $50 per barrel could reverse some production declines among high-cost producers, including shale drillers in the United States.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Seyi Makinde Proposes N266.6 Billion Budget for Oyo State in 2021

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The Executive Governor of Oyo State, Seyi Makinde, has presented the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly on Monday.

The proposed budget titled “Budget of Continued Consolidation” was said to be prepared with input from stakeholders in all seven geopolitical zones of Oyo state.

Governor Makinde disclosed this via his official Twitter handle @seyiamakinde.

According to the governor, the proposed recurrent expenditure stood at N136,262,990,009.41 while the proposed capital expenditure was N130,381,283,295.63. Bringing the total proposed budget to N266,6444,273,305.04.

The administration aimed to implement at least 70 percent of the proposed budget if approved.

He said “The total budgeted sum is ₦266,644,273,305.04. The Recurrent Expenditure is ₦136,262,990,009.41 while the Capital Expenditure is ₦130,381,283,295.63. We are again, aiming for at least 70% implementation of the budget.”

He added that “It was my honour to present the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly, today. This Budget of Continued Consolidation was prepared with input from stakeholders in all seven geopolitical zones of our state.”

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World Bank Expects Nigeria’s Per Capita Income to Dip to 40 Years Low in 2020

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The World Bank has raised concern about Nigeria’s rising debt service cost, saying it could incapacitate the nation from necessary infrastructure development and growth.

The multilateral financial institution said the nation’s per capita income could plunge to 40 years low in 2020.

According to Mr. Shubham Chaudhuri, Country Director for World Bank in Nigeria, the decline in global oil prices had impacted government finances, remittances from the diaspora and the balance of payments.

Chaudhuri, who spoke during the 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Federal Government, said while the nation’s debt is between 20 to 30 percent, rising debt service remains the bane of its numerous financial issues and growth.

Nigeria’s problem is that the debt service takes a big part of the government revenue,” he said.

He said, “Crisis like this is often what it takes to bring a nation together to have that consensus within the political, business, government, military, civil society to say, ‘We have to do something that departs from business as usual.’

“And for Nigeria, this is a critical juncture. With the contraction in GDP that could happen this year, Nigeria’s per capita income could be around what it was in 1980 – four decades ago.”

Nigeria’s per capita income stood at $847.40 in 1980, according to data from the World Bank. It rose to $3,222.69 in 2014 before falling to $2,229.9 in 2019.

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Economy

Nigeria Will Have no Business With Fish Importation in the Next Two Years- FG

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fish

At the 35th annual conference of the Fisheries Society of Nigeria (FISON) held in Abuja on Monday, the minister of Agriculture and Rural Development, Mr  Sabo Nanono, expressed plans of the federal government to initiate and implement programmes that are aimed towards diversification, especially in the agricultural sector.

The minister explained that the fishery sub-sector contributes about 4.5 percent to the National Gross Domestic Products, with an estimation of over 12 million Nigerians actively involved in fish farming and production.

He further said that despite this number, Nigeria produces 1.1 million tonnes of fishes annually, while there is a total demand of 3.6 million tonnes of fish and this puts Nigeria is at a deficit of 2.5 million tones. The shortage is supplemented through importation.

“Let me inform you that the vision of Mr President is to grow Nigeria’s agriculture sector to achieve a hunger-free nation, through agriculture that drives income growth, accelerate the achievement of food and nutritional security, generate employment and transform Nigeria into a leading player in the group of food and fish markets, and to create wealth for millions,” he said.

He also explains the ministry’s plans of diversification and development of various empowerment programmes that aid job creation.

“In line with the theme of this conference, the ministry has developed various programmes to increase domestic food/fish production and the main target is the empowerment of the youth and other groups especially the women,” he stated, adding: “All these programmes are tailored towards wealth and jobs creation, arrest and prevention of youth restiveness”.

He said the government has directed all fish importers to commence backward integration for local consumption and export to international markets, these are part of the measures of the ministry to generate employment and reduce importation of fish into the country.

In regards to this plans, Nanono said that the ministry is optimistic that Nigeria will have no business with fish importation in the next two years, considering that several companies have complied to the laid down policy.

Representing the Director of Federal Department of Fisheries, Mr Imeh Umoh, he stressed that the fishery is one of the value chains in the ministry and a force that drives wealth, job creation, contribute to food nutrition, poverty reduction and creation of diverse investment for Nigerians “especially during the economic recession which is occasioned by the COVID-19 pandemic”.

Nanono said that considering the current economic situation due to the global health pandemic and the ongoing economic recovery programme, the contribution of the fisheries and aquaculture sub-sector of Nigeria will make a significant impact in terms of job creation, income generation, poverty alleviation, foreign exchange earnings and provision of raw materials.

Mr Adegoke Agbabiaka, President of FISON said that in the last decade the government has made a paradigm shift under the Agricultural Transformation Agenda and is now considering agriculture, including fisheries and aquaculture, as a business and this will aid to achieve self-sufficiency in fish production.

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