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FG Urges SkyNet to End Multinational Currier Companies Dominance

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The federal government has called on a leading player in the courier and logistics business in Nigeria, SkyNet Worldwide Express Limited to take advantage of the huge opportunity in the sector to end the dominance of multinational courier companies of the Nigerian market.

Post-Master General/Chief Executive Officer of the Nigeria Postal Services (NIPOST), Bisi Adegbuyi stated this at the opening of the company’s new head office in Lagos.

Represented by his Senior Special Assistant, Courier Regulatory Department, Dr. Simon Emeje, he called on other indigenous courier companies to emulate SkyNet Worldwide Express and take advantage of the opportunity in the industry.

According to him, “I want to let you all know that the federal government appreciates the effort of Cfl Global Express Limited owners of SkyNet Worldwide Express. As regulators, we are glad to see this company grow. We want Nigerian currier companies to compete with Fedex, DHL and others. The industry is very big, it is an industry that cannot be neglected. Investors should look at what SkyNet Worldwide Express has achieved in a short period and invest in the industry.

“The post is the seventh largest company in the United States of America and its Postmaster General is a cabinet position. That is how it is in Japan. The industry consists of logistics, currier and general post. As regulators we will do what we can to help local currier companies like SkyNet Worldwide Express to grow and end the dominance of multinational courier companies. In the next five years, I am sure this company will achieve this feat.”

Earlier in his speech, the Managing Director of the company, Tayo Ogundare said the vision of the company from inception was to build an international logistics company transacting business around the world with extensive network in Africa.

“We had the vision to become Africa’s largest logistics and Courier Company with extensive network in Nigeria and other cities of the world. Since the world has become a global village and to fully actualise our vision of a global player, we knew we must as a matter of importance be part of a global player. Thus in 2008, the board of directors identified and approached the fifth largest currier and express delivery network in the world, SkyNet Worldwide Express for the Nigerian franchise.

“After a competitive bidding, our company was granted the franchise in October 2012. Since the acquisition of the franchise, we have grown in leaps and bounds. Within the few years, we have won several awards and accolades. Today, we thank God our vision has become a reality, “he said.
The story of the company, he stated, is like a mustard seed which was the smallest of all seeds but has grown to become a giant tree.

He said: “Our company started from a humble beginning. We started in 2002 from a borrowed office, a borrowed chair and table, two telephone lines and two staff member. But today we have transformed into an international business enterprise.”

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.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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