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Arik Airline Resumes Operations after Temporary Suspension

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Arik, the airline with the largest fleet in the country, will resume full operation wednesday after tuesday’s suspension of operations due to its inability to renew its aircraft insurance.

“We have resolved the issues relating to the insurance. Our flights have resumed but our full operations will start tomorrow. Two flights are already leaving to Port Harcourt and Abuja this evening. We sincerely apologise to our clients,” Adebanji Ola, its spokesman said in a statement.

In another statement, the Group CEO, Dr. Michael Arumemi-Ikhide, apologised to its passengers and said the airline was fully committed to normal operations and minimise any unfortunate inconvenience to them.

“Where flights have been cancelled, the airline will notify passengers through SMS and in such cases, passengers will be accommodated on first available alternative flight as soon as normal flight operations resume,” he said.

The airline had tuesday afternoon announced suspension of operations owing to difficulties in getting approval for its aircraft insurance. “Arik Air, West and Central Africa’s largest airline, has alerted all air travellers of a temporary disruption to its operations, pending approval of aircraft documentation related to insurance renewal,” the airline said in statement by Ola,” adding: “we working around the clock to resolve the necessary documentation, which has been a challenge due to the long weekend holidays due to Ed-el-Kabir.”

The development left many passengers stranded at airports across the country, many of whom were returning to work after the Moslem festival.

According to international regulations, aircraft could not be allowed to fly without insurance, which is done for the total number of aircraft in the airline’s fleet.

The airline, however, said in another statement that flight operations were resuming after 16 hours of disruptions, apologising to its passengers across the country for the inconvenience the suspension of operations might have caused them, adding that it would get in touch with them to provide an update on rescheduling of their flights.

“All customers are kindly advised to contact Arik Air’s Call Centre (01-2799999), Airport or City ticket offices or visit the airline’s Website (www.arikair.com) for further updates. Passengers are also advised to check with the airline regarding the status of their flights before proceeding to the airport,” the airline said.

Arik is the third domestic operator to suspend operations since the effect of the nation’s economic downturn began to hit the aviation industry.

Aero Contractors and First Nation had suspended operations two weeks ago, citing difficulties in procuring forex for the maintenance of their fleet as their challenge.

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.

Gold

Gold Gained Ahead of Joe Biden Inauguration 2021

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Gold

Gold Gained Ahead of Joe Biden Inauguration 2021

Gold price rose from one and a half month low on Tuesday ahead of President-elect Joe Biden’s inauguration on Wednesday.

The precious metal, largely regarded as a haven asset by investors, edged up by 0.2 percent to $1,844.52 per ounce on Tuesday, up from $1,802.61 on Monday.

According to Michael McCarthy, the Chief Market Strategies, CMC Markets, the surged in gold price is a result of the projected drop in dollar value or uncertainty.

He said, “The key factor appears to be the (U.S.) currency.”

As expected, a change in administration comes with the change in economic policies, especially taking into consideration the peculiarities of the present situation. In fact, even though Biden, Janet Yellen and the rest of the new cabinet are expected to go all out on additional stimulus with the support of Democrats controlled Houses, economic uncertainties with rising COVID-19 cases and slow vaccine distribution remained a huge concern.

Also, the effectiveness of the vaccines can not be ascertained until wider rollout.

Still, which policy would be halted or sustained by the incoming administration remained a concern that has forced many investors to once again flee other assets for Gold ahead of tomorrow’s inauguration.

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Crude Oil

Crude Oil Holds Steady Above $55 Per Barrel on Tuesday

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Crude Oil Holds Steady Above $55 Per Barrel on Tuesday

Brent Crude oil, against which Nigerian crude oil is priced, rose from $54.46 per barrel on Monday to $55.27 per barrel as of 9:03 am Nigerian time on Tuesday.

Last week, Brent crude oil rose to 11 months high of $57.38 per barrel before pulling back on rising COVID-19 cases and lockdowns in key global economies like the United Kingdom, Euro-Area, China, etc.

While OPEC has left 2021 oil demand unchanged and President-elect Joe Biden has announced a $1.9 trillion stimulus package, experts are saying the rising number of new cases of COVID-19 amid poor vaccine distribution could drag on growth and demand for oil in 2021.

On Friday, Dan Yergin, vice-chairman at IHS Markit, said in addition to the stimulus package “There are two other things that are going with it … one is of course, vaccinations — in the sense that eventually this crisis is going to end, and maybe by the spring, lockdowns will be over.”

“The other thing is what Saudi Arabia did. This is the third time Saudi Arabia has made a sudden change in policy in less than a year, and this one was to announce (the) 1 million barrel a day cut — partly because they are worried about the impact of the surge in virus that’s occurring,” he said.

Also, the stimulus being injected into the United States economy could spur huge Shale production and disrupt OPEC and allies’ efforts at balancing the global oil market in 2021.

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Crude Oil

Crude Oil Pulled Back Despite Joe Biden Stimulus

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Crude Oil Pulled Back Despite Joe Biden Stimulus

Crude oil pulled back on Friday despite the $1.9 trillion stimulus package announced by U.S President-elect, Joe Biden.

Brent crude oil, against which Nigeria’s oil is priced, pulled back from $57.38 per barrel on Wednesday to $55.52 per barrel on Friday in spite of the huge stimulus package announced on Thursday.

On Thursday, OPEC, in its latest outlook for the year, said uncertainties remain high in 2021 with the number of COVID-19 new cases on the rise.

OPEC said, “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.”

Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.

The complex remains in pause mode, a development that should not be surprising given the magnitude of the oil price gains that have been developing for some 2-1/2 months,” Jim Ritterbusch, president of Ritterbusch and Associates, said.

Still, OPEC left its crude oil projections unchanged for the year. The oil cartel expected global oil demand to increase by 5.9 million barrels per day year on year to an average of 95.9 million per day in 2020.

But also OPEC expects a recent rally and stimulus to boost U.S. Shale crude oil production in the year, a projection Investors King experts expect to hurt OPEC strategy in 2021.

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