Connect with us

Markets

Consumer Prices in U.S. Rise at Fastest Pace in Five Months

Published

on

Consumer Prices
  • Consumer Prices in U.S. Rise at Fastest Pace in Five Months

The cost of living in the U.S. rose at the fastest pace in five months on energy and shelter prices, a sign inflation is getting closer to the Federal Reserve’s goal.

The consumer-price index increased 0.3 percent in September from the previous month, matching the median forecast of economists, after a 0.2 percent gain in August, a Labor Department report showed Tuesday. The year-on-year rise was 1.5 percent, the most since October 2014. Excluding volatile food and fuel costs, prices were up 0.1 percent.

Prices have shown a gradual pickup as housing costs continue to climb and the drop in energy prices abates. The data, along with a still-strong labor market, may keep policy makers on course for a quarter-point interest-rate increase in December after holding off on hikes so far this year.

“This is still consistent with a December rate hike and a gradual pace over the next year,” said Scott Brown, chief economist at Raymond James Financial Inc. in St. Petersburg, Florida.

Projections for the advance in consumer prices including all categories ranged from 0.2 percent to 0.4 percent.

Analyst Estimates

Estimates for core consumer prices ranged from a 0.1 percent drop to a 0.3 percent advance, with a median of a 0.2 percent rise. At a year-over-year rate, core prices rose 2.2 percent in September after climbing 2.3 percent the prior month.

Energy costs increased 2.9 percent in September after being little changed a month earlier, the report showed. Food costs were little changed in September.

The advance in the core index was bolstered by prices for housing and airfare, while costs of apparel and automobiles declined. Health-care costs were little changed.

Fed officials, who are considering whether to raise the benchmark interest rate before year’s end after remaining on hold for all of 2016, might find support for a rate hike amid bubbling inflation. While the central bank watches CPI, officials’ preferred price gauge is the Commerce Department’s personal consumption expenditures measure, which hasn’t met the Fed’s 2 percent goal since April 2012.

The CPI is the broadest of three price gauges from the Labor Department because it includes all goods and services. Reports earlier this month showed that the gauge of wholesale prices climbed 0.3 percent in September, the first gain in three months, while the cost of imported goods rose 0.1 percent last month, indicating inflation pressures from abroad remain muted.

About 60 percent of the CPI covers prices consumers pay for services from medical visits to airline fares, movie tickets and rents.

A measure of real average hourly earnings fell 0.1 percent in September from the previous month, the second straight such decline, according to the Labor Department. The figure was up 1 percent from a year earlier.

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.

Continue Reading
Comments

Crude Oil

NNPC Plans Divestment Pathway For Joint Ventures Partnership

Published

on

NNPC Nigeria

The Nigerian National Petroleum Corporation (NNPC) has said it would outline policies to guide its joint venture partners (JVC) that wish to divest from joint ventures or the Nigerian oil and gas industry.

NNPC Group Managing Director, Mele Kyari on Monday said that Nigeria, as a key player in global energy security, was addressing its challenges, mainly fiscal, security and cost competitiveness, to stimulate investments in the oil and gas industry.

Kyari, who spoke in Lagos while delivering an address at the opening ceremony of the Nigeria Annual International Conference and Exhibition said, “NNPC, as a national oil company, is leading multiple initiatives to address this and other issues.

“As we celebrate the passage of the PIB, we have moved our focus to improve security architecture through collaboration with major stakeholders.”

According to him, the Nigerian Upstream Cost Optimisation Programme is working with operators and service contractors to challenge the cost of operations and increase profitability and growth in the industry.

“On the other hand, we are seeing a wave of divestment by oil majors operating in Nigeria. NNPC as a national oil company cannot stop partners from divesting their interest, even though it creates challenges for us in ensuring that we get the right and competent investors to take a position and add value to the assets.

“The NNPC will ensure that Nigeria’s national strategic interest is safeguarded by developing a comprehensive divestment policy that will provide clear guidelines and criteria for divestment of partners’ interest,” Kyari said.

He said the corporation would make clear distinctions between divestment of shares and operatorship agreements under various joint operating agreements while leveraging its rights of pre-emption and evaluating the operational competence and tract records of new partners.

Kyari said in order to sustain a prosperous business environment, particular attention would be paid to abandonment and relinquishment costs, severance of operator staff, third party contract liabilities, competency of the buyer, and post purchased technical, operational and financial capabilities.

He said the NNPC would declare its first dividend to Nigerians as it prepares to release its 2020 financial statements in the third quarter of this year.

The local unit of the Royal Dutch Shell had in May said that its onshore oil portfolio in Nigeria was ‘no longer compatible with its strategic ambitions.

“We have reduced the total number of licenses in onshore Nigeria by half. But unfortunately, our remaining onshore operations continue to be subject to sabotage and theft,” Chief Executive Officer, Ben van Beurden, told investors at the company’s AGM.

Early this year, Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited concluded the sale of their combined 45 percent interest in Oil Mining Lease 17 and related assets in the Eastern Niger Delta to TNOG Oil and Gas Limited.

Continue Reading

Crude Oil

Petrol Subsidy Likely to Gulp N2T This Year –Rainoil GMD

Published

on

petrol scarcity Nigeria

Nigeria may end up spending N2 trillion on petrol subsidy this year if the current situation persists, the Group Managing Director, Rainoil Limited, Dr Gabriel Ogbechie, has said.

Ogbechie said this on Sunday at the Nigeria History Series of the Centre for Values in Leadership, themed ‘Indigenous participation in the downstream oil and gas sector’ moderated by Prof. Pat Utomi.

While lamenting the lack of deregulation in the downstream sector, he said the government was spending about N8m daily on petrol subsidy.

He described the sector as highly regulated, saying, “I wonder if there is any other sector of the economy that is as regulated as the downstream.”

He said, “The biggest elephant in the room today as far as the downstream is concerned is the failure, so to speak, of the government to deregulate the downstream – fixing the price at which petroleum products are sold, I believe, is very seriously harmful to this economy.”

According to him, the landing cost of the petrol imported into the country is about N300 per litre, based on the current naira-dollar exchange rate.

Continue Reading

Crude Oil

Sirius Petroleum and Baker Hughes Collaborate on OML 65 Drilling in Nigeria

Published

on

sirius petroleum- Investors King

Sirius Petroleum, the Africa-focused oil and gas production and development company, has signed a memorandum of understanding with Baker Hughes. The MoU names Baker Hughes as the approved service provider for Phase 1 of the Approved Work Program (AWP) of the OML 65 permit, a large onshore block in the western Niger Delta, Nigeria. Baker Hughes will provide a range of drilling and related services at a mutually agreed upon pricing structure to deliver the initial nine-well program.

Sirius has signed various legal agreements with COPDC, a Nigerian joint venture, to implement this program. COPDC has signed a Financial and Technical Services Agreement (FTSA) with the Nigerian Petroleum Development Company (NPDC) for the development and production of petroleum reserves and resources on OML 65. The FTSA includes an AWP which provides for development in three phases of the block. and Sirius has entered into an agreement with the joint venture to provide financing and technical services for the execution of the PTA.

The joint venture will initially focus on the redevelopment of the Abura field, involving the drilling and completion of up to nine development wells, intended to produce the remaining 2P reserves of 16.2 Mbbl, as certified by Gaffney Cline and Associates (GCA) in a CPR dated June 2021.

Commenting, Toks Azeez, Sales & Commercial Executive of Baker Hughes, said: “We are extremely happy to have been selected for this project with Sirius and their JV partners. This project represents an important step towards providing our world-class integrated well-service solutions in one of the most prolific fields in the Niger Delta. Baker Hughes’ technological efficiency and execution excellence will help Sirius improve its profitability and competitiveness in the energy market.”

Bobo Kuti, CEO of Sirius, commented: “We are delighted to have secured the services of one of the world’s leading energy technology companies to work with our joint venture team to deliver the approved work program on the block. OML 65. We look forward to building a long and mutually beneficial partnership with Baker Hughes.”

Continue Reading




Advertisement
Advertisement
Advertisement

Trending