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Weak Demand for Nigerian Oil Leaves Tankers Idle

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Weak demand for Nigerian crude oil has caused the number of ships without cargoes to rise to levels not seen in recent times.

As a result, the cost of sending crude oil cargoes from West Africa to Northwest Europe on Suezmaxes has dropped to the lowest level in over 14 years, according to Platts data.

The continued force majeure on three Nigerian crude oil grades – Forcados, Qua Iboe and Brass River – has substantially curbed demand for Suezmaxes in the region in recent months, and caused the WAF tonnage list to swell to levels rarely seen by veteran market participants.

Suezmaxes are medium to large-sized ships with a deadweight tonnage of between 120,000 and 200,000. They are the largest marine vessels that meet the restrictions of the Suez Canal, and are capable of transiting the canal in a laden condition.

According to one shipbroker’s position list, there were 32 ships available prior to the start of the current fixing window, versus a three-month average of 14.8 ships. There were also 29 ships that were free of cargo, which could make the WAF fixing window.

The number of ships means that each cargo that is shown to multiple owners attracts multiple offers and allows charterers to drive freight rates downwards.

The WAF-UK Continent route basis 130,000 mt was assessed five points lower at Worldscale 35 on Wednesday. This equates to $5.05/mt, which is the lowest since a $3.95/mt assessment on June 21, 2002.

This came after BP was heard to have placed the Ottoman Tenacity on subjects at w35 for an Angola-Rotterdam voyage on August 27.

Meanwhile, ExxonMobil is said to be working on a plan to export Qua Iboe crude oil, Nigeria’s largest export stream, via an alternate pipeline, while it repairs damage to the main export line sustained in July, sources told Reuters.

The crude oil grade has been under force majeure since mid-July, when the company said it detected a “system anomaly” on the subsea pipeline.

Sources were quoted to have said that the company later found substantial damage that would take at least one to two months to repair, spurring the decision to try to export via a second, smaller pipeline that also feeds the platform.

“We’re continuing to make progress, but we would not speculate on a timeline for repairs,” an Exxon spokesman said, without commenting on the plan to use an alternative pipeline.

The nation’s oil production has been affected by militant action since the beginning of the year, with the Nigerian National Petroleum Corporation saying pipeline attacks have taken out some 700,000 barrels per day from production that is typically just above two million bpd.

“Exxon is preparing the alternate export line,” one source said, adding that if it was successful, some exports could emerge within two weeks.

Two sources added that Exxon, and the Qua Iboe terminal itself, were not sharing details on the repair progress or export plans for fear of provoking militant attacks on oil infrastructure.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Mobility Company Uber Increases Fares in Lagos Due to Unfriendly Economic Conditions

Mobility company Uber via an email recently disclosed to its drivers that it was increasing its fares in Lagos.

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Mobility company Uber via an email recently disclosed to its drivers that it was increasing its fares in Lagos.

The company disclosed that this increase in price was necessitated by unfriendly economic conditions, coupled with the increase in the price of fuel which will take effect on October 3, 2022.

According to the email sent, the base fare will increase from ₦340 ($0.78) to ₦450 ($1.04), while the minimum and per minute fare will go from ₦600 ($1.38) to ₦650 ($1.50) and ₦14 ($0.03) to ₦16 ($0.03), respectively.

This is not the first time the mobility company is increasing its fare, it should be recalled that on May 10, 2021 Investors King reported that Uber was increasing its fares by 13 percent in Lagos. According to the company, the increase was to ensure a reliable earning opportunity for driver-partners.

However, the company’s recent decision to once again increase its fares in Lagos may come as a surprise to users but it is in line with its activities in other countries where it has operations.

Lagos is not the only city that has witnessed an increase in fares. In August 2022, Bloomberg reported Uber was increasing its fares in London by 5%, with plans to do the same in other cities across the United Kingdom. 

Uber has not been the only ride-hailing player to increase its prices. A report by Rakuten Intelligence revealed that the cost of a ride on ride-hailing apps had increased 98% between 2018 and 2021, driven partly by a shortage of drivers.

But in recent times, the company has begun pushing for profitability. In an email to employees in May 2022, CEO Dara Khosrowshahi said, “we have to make sure our unit economics work before we go big.” The result of that has been an increase in fares.

However, in 2017 Uber reduced its fare shortly after Taxify, a growing competitor did the same. The company sent a message to its drivers via a mail which reads, “As of today, Uber has reduced fares by 40% in Lagos. This means you can travel for business or explore your city for less than ever before”.

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Tesla Records High Car Deliveries This Year But Failed to Meet Wallstreet Forecast

Tesla reportedly delivered 343,830 electric vehicles in the third quarter (Q3), a new record for the company this year

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Tesla Model 3 - Investors King

Automotive company Tesla reportedly delivered 343,830 electric vehicles in the third quarter (Q3), a new record for the company this year. However, the company still underperformed as it failed to meet Wallstreet projections.

Following the shutdown of its company in China, due to the country’s extended COVID-19 lockdown and challenges around opening factories, Tesla’s delivery fell to nearly 18% in the Second (Q2) of 2022 which took a toll on the company.

Despite the rebound and record number in Q3, there was also a larger-than-usual gap between production and delivery numbers. The company produced 365,923 vehicles in the third quarter.

The company disclosed that part of why it failed to hit certain delivery figures was due to logistical challenges which overshadowed its record deliveries.

Tesla said “it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost,” but some analysts were also concerned about demand for high-ticket items due to the weakening global economy.

In other words, the car manufacturing company is going to try and evolve beyond its legendary end-of-the-quarter pushes. CEO Elon Musk tweeted that it is trying for a steadier approach, “Customer experience suffers when there is an end-of-quarter rush. Steady as she goes is the right move,” he tweeted.

According to a statement from the company, it said “As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks.

“In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter. These cars have been ordered and will be delivered to customers upon arrival at their destination.”

The economy around the edges is still having a negative impact on Tesla that’s mostly logistical. It should be recalled that on April 21, 2022,  Investors King reported that Tesla realised $18.7 billion in revenue in the first quarter (Q1) of 2022 despite supply disruptions and delays experienced due to Chinese Covid-19 lockdown.

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Brands

Dangote Industries Wins ECOWAS’ Brand of The Decade Award

Dangote Industries Limited has won ECOWAS Outstanding Indigenous Conglomerate of the Decade

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Africa’s largest business conglomerate, Dangote Industries Limited has won ECOWAS Outstanding Indigenous Conglomerate of the Decade.

It was a show of accolades as the Dangote brand was named the number one brand by all standards with its Sugar and Cement production which has contributed tremendously to the infrastructure development not only in Nigeria but Africa in the last 10 years.

Speaking at the event which was held in Lagos, John Ajayi, Publisher/CEO of Marketing Edge Publications noted that the award to Dangote brands are in recognition of its leadership and domination in the various market segments and categories which span several countries in Africa. 

Mr Anthony Chiejina, Group chief, branding & communications officer, Dangote Industries noted that Dangote Industries remains at the forefront of African enterprise and that the brand, since its inception, has touched the lives of many by providing their basic needs.

Some of the awards won during the Marketing Edge Magazine’s 2022 summit included Outstanding Indigenous Conglomerate won by Dangote Industries Limited, Cement Brand of the Decade as well as Sugar Brand of the Decade

Investors King had earlier reported that Dangote Industries Ltd. (DIL) won the most admired brand in Africa for the fifth consecutive year in a row. 

During the award presentation, Group Chief Commercial Officer of Dangote Industrial Limited, Mr Rabiu Umar said “The company had risen a notch higher as a global brand with the export of Dangote Fertiliser to many countries of the world. People now identify with the brand and in all the countries where we operate, Dangote Cement has become a reference point.

 “We are touching lives by providing their basic needs and empowering Africans more than ever before, creating jobs, reducing capital flight, and helping the government to conserve foreign exchange drain by supporting different industrial and infrastructural projects of African governments.

We fervently believe that only Africans can develop Africa, and this gives us a stronger sense of relevance in all the countries where we have our operations”. He concluded.

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