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Oil Prices Tumble on OPEC Skepticism

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Oil Pumping Jacks Operating At MND AS Depot As $30 Barrel Gets Closer

Oil futures fell sharply Friday, posting their biggest daily loss in two months on skepticism that the world’s largest exporters can cooperate and ease a supply glut that has dragged down prices for two years.

Crude dropped just before noon after Bloomberg News reported Saudi Arabia doesn’t expect the Organization of the Petroleum Exporting Countries to reach an agreement when it meets Wednesday in Algeria’s capital. The comments echo those made last weekend by the group’s secretary-general to Algeria’s state news agency APS that the meeting is informal and not for decision-making.

Traders “are reacting with disappointment and disgust,” said Donald Morton, senior vice president at Herbert J. Sims Co., who runs an energy-trading desk.

Light, sweet crude for November delivery settled down $1.84, or 4%, to $44.48 a barrel on the New York Mercantile Exchange. It was the largest daily loss since July 13 and erased most of the gains from a four-session winning streak. Nymex crude ended the week up 86 cents, or 2%.

Brent, the global benchmark, lost $1.76, or 3.7%, to $45.89 a barrel. It ended the week up 12 cents, or 0.3%.

Saudi Arabian and Iranian oil officials have clashed this week over production limits while meeting at the OPEC headquarters in Vienna, The Wall Street Journal reported Friday. Saudi Arabia and Iran couldn’t agree on what statistics should be used to determine oil output levels for a potential “freeze”—the term used to describe a joint effort by big producers to limit their petroleum output at the current pace or lower.

Short bursts of optimism have often been broken by news of internal disputes and by widespread skepticism from analysts and traders about OPEC’s ability to strike a deal. Heavyweights including Saudi Arabia, Iran and Iraq have longstanding political rivalries and have been in a fierce competition to undercut each other and sell more oil.

Analysts at Macquarie Group issued a note Friday advising traders to sell on almost any outcome from OPEC’s talks. A concrete deal with detailed parameters on output limits from all parties is the least likely outcome, and even if they do reach a deal, it is likely to be littered with exceptions and waivers, and at best lead to a short-lived rally, the bank’s analysts said.

“Even an agreement to freeze would not be bullish either, given how high current production levels are. The only bullish case would be a credible and significant supply cut, which as it stands right now is extremely unlikely,” said Tamas Varga, an analyst at PVM Oil Associates.

At 11 million barrels a day, Russian production levels are at their highest since the collapse of the Soviet Union, according to Commerzbank commodities researchers. “The supply of crude oil remains ample, in other words,” the bank’s analysts added in a note Thursday.

Prices have often been bolstered by rhetoric from major OPEC producers since late August when they broached the idea of informal talks and better cooperation. Saudi Arabia and Russia this month signed an oil-cooperation agreement. OPEC oil chief Mohammed Barkindo last weekend said that if agreed by all parties, an emergency meeting could be called later this year to solidify a policy. Venezuelan President Nicolás Maduro also has said OPEC and non-OPEC members were close to a deal.

“There’s a chance of success,” said Robert Minter, investment strategist at Aberdeen Asset Management, which had $402.8 billion in assets under management at the end of June. “It would at least show that they can once again act together and achieve a consensus.”

A senior OPEC official was quoted by the Journal as saying that OPEC has to keep the chatter going, “to make sure prices don’t fall to a certain level or rise to a certain level they don’t like, and recently we have seen a lot of that.”

Gasoline futures settled down 2.49 cents, or 1.8%, at $1.3769 a gallon. They lost 5.8% for the week, the worst performance since the week ended Sept. 2.

Diesel futures lost 4.69 cents, or 3.2%, to $1.4073 a gallon. That canceled out nearly all the gains from the week, which diesel finished up just 0.2%.

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.

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Farmforte, Others Signs MoU To Strengthen and Sustain Growth in Agricultural Sector

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Farmforte - Investors King

Farmforte Limited has signed a strategic Memorandum of Understanding with the Agricultural Fresh Produce Growers and Exporters Association of Nigeria; HYBR, a pan-African innovation firm; and ALTS, a consulting and strategy development firm.

The firm said in a statement on Sunday that the partnership would strengthen common interest cooperation and stimulate inclusive and sustainable growth within the agricultural sector, by capitalising on the synergy and comparative advantage offered by each organisation.

Speaking during the signing ceremony, Farmforte Co-Chief Executive Officer, Osazuwa Osayi, said, “Our mid to long-term strategic goals are further reaffirmed, as this partnership will facilitate the sharing of knowledge, ideas, and expertise across the agricultural sector.

“We will collectively address initiatives and approaches concerning agricultural investments, food security, and the overall robustness of the value chain.”

He said the collaboration would also unlock the full potential of the sector and place it on a renewed path for success, especially within a post-pandemic economy.

The President of AFGEAN, Tajuddeen Dantata, said, “By creating dialogue and fostering investment in the horticulture sector, this partnership will endeavor to support Farmforte in its exporting efforts by improving operational efficacy and cost-savings, while ultimately driving socio-economic growth in the country.”

The Chief Executive Officer, HYBR, Charles Ojei, said to drive inclusion, sustainability, job creation, and Nigeria’s overall economic growth, the optimisation of the agriculture value chain was critical.

“This collaboration is a fusion of the complementary capabilities of all partners to move a bigger agenda forward.”

The Managing Partner, ALTS, Akintunde Sawyerr, said, “The goal of this partnership is to support Farmforte’s vision of becoming the largest agribusiness by 2035 via scalable and world-class innovation across its enterprise.”

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OctaFX Launches Dual Life Campaign

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OctaFX- Investors King

International Forex broker, OctaFX has launched a socially conscious marketing campaign called Dual Life aimed at simplifying forex trading and helping Nigerians create wealth.

A statement by the organisation on Monday said that the marketing campaign would celebrate the superpowers of Nigerians who committed their time and efforts to two or more jobs and were successful at each one of them.

It stated that the #DualLifewithOctaFX campaign had influencers in the Nigerian lifestyle and entertainment space such as Toke Makinwa, Bovi, Denola Grey, Timini Egbuson, and others at the core of the engagements, establishing the other sides of the celebrities and influencers as entrepreneurs.

While speaking about the campaign, the Marketing Manager, EMEA, OctaFX, Ali Nwadike said, “We wanted to position forex trading as that activity young Nigerians and everyone else, can engage in, even while focusing on their careers.

“From findings, most young Nigerians today work two or more jobs to pay the bills and attain financial freedom. But, we don’t get to talk about this often or appreciate the efforts, hence the #DualLifewithOctaFX campaign.

“While some see their jobs as a burden, we want people to see it as an achievement; and promote the school of thought that says one, two, many jobs is not bad especially when you are trying to create wealth.”

Nwadike added that more Nigerians would be exposed to the beauty of keeping their regular jobs and careers while making more money from forex trading with the OctaFX Trading App.

The statement also affirmed that OctaFX had made necessary arrangements from assembling forex experts and compiling training guides in the simplest and relatable form.

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Appointments

AfDB Appoints Dr. Beth Dunford as Vice President

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African Development Bank - Investors King

The African Development Bank Group (AfDB) has announced the appointment of Dr. Beth Dunford as its Vice President, Agriculture, Human and Social Development. The appointment becomes effective from July 1, 2021.

A statement explained that Dunford, a national of the United States of America, brings extensive experience to this role. She has held senior-level leadership positions in the US government, where she managed large and complex programs, working with the private sector, civil society, and multilateral and bilateral institutions, as well as with African governments, to deliver agricultural, social and human development impact at scale.

Prior to her appointment, Dunford worked as the Assistant to the Administrator in the U.S. Agency for International Development’s (USAID’s) Bureau for Resilience and Food Security, as well as the Deputy Coordinator for Development for Feed the Future, the U.S. government’s global hunger and food security initiative.

“In this dual role, she coordinated Feed the Future across multiple U.S. government agencies, oversaw a $1 billion annual budget and leveraged millions of direct private sector investment annually. In this capacity, she also coordinated a $2.3 billion Feed the Future presidential initiative across 11 US government agencies and forged partnerships within the private sector and civil society targeted at reducing hunger and poverty.

“She also led USAID’s technical and regional expertise focused on improving agriculture-led growth, resilience, nutrition and water security, sanitation and hygiene,” the statement added.

President of the African Development Bank, Dr. Akinwumi Adesina said he was delighted to appoint Dunford as Vice President to lead the Bank’s work on Agriculture, Human and Social Development.

“Beth is a strategic and effective leader with deep knowledge and impressive track record in designing and delivering highly impactful large-scale programs that have helped in lifting 27 million people out of poverty in 36 countries,” he added.

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