- Nigeria’s Oil Export, Output Recover
Nigeria’s oil export has recovered to some extent from disruptions caused by militant attacks on pipelines and export terminals.
Supply in Nigeria was boosted as exports of Qua Iboe and Forcados crude resumed, a Reuters survey of shipping data shows.
With Nigeria and Libya pumping more oil, OPEC’s oil output is likely to set another record high in October, threatening the prospect of imposing some output curbs by OPEC and non-OPEC producers, the news agency reported.
In September, OPEC agreed on a plan to limit supplies.
There are now skepticisms about the plan. Oil, which rallied to a 2016 high near $54 a barrel following the decision, has since slipped towards $48.
Supply from the Organization of the Petroleum Exporting Countries has risen to 33.82 million barrels per day (bpd) in October from a revised 33.69 million bpd in September, according to the survey based on shipping data and information from industry sources.
That would be 820,000 bpd above the top end of a target output range OPEC agreed to adopt at a Sept. 28 meeting. According to analysts, production near 34 million bpd would prolong the supply surplus weighing on the market.
“With OPEC production creeping up towards 34 million barrels a day, a production freeze guarantees that the oil market will remain out of balance throughout 2017 and into 2018,” said David Hufton of oil broker PVM.
Supply has risen since OPEC in 2014 dropped its historic role of fixing output to prop up prices as Saudi Arabia, Iraq and Iran pumped more. Production has also climbed due to the return of Indonesia in 2015 and Gabon in July as members.
October’s supply from OPEC excluding Gabon and Indonesia, at 32.88 million bpd, is the highest in Reuters survey records starting in 1997.
In October, the increase was led by Nigeria, Libya and Iraq.
In Libya, production has been hit by port shutdowns, strikes and protests since the fall of Muammar Gaddafi in 2011. Output has increased in recent weeks since the reopening of some major terminals, but remains a fraction of the 2011 rate.
Iraq exported more crude from its northern and southern ports, lifting supply to 4.58 million bpd in October from a revised 4.52 million bpd in September, according to the survey. Iraq says its September production is higher.
Saudi Arabia has kept supply steady to lower, but still within sight of the record high reached in the summer, sources in the survey said. One source said there were signs of a bigger drop in output.
Fellow Gulf producers the United Arab Emirates and Kuwait both pumped slightly more. The two say their production is higher than estimated by both the Reuters survey and by the sources that OPEC uses to monitor its output.
Supply growth in Iran, OPEC’s fastest source of production increases earlier this year after the lifting of Western sanctions, has slowed down as output nears the pre-sanctions rate. Iran is seeking investment to boost supply further.
Among countries with lower output, the biggest drop was in Angola because of planned maintenance on the Dalia crude stream which pushed exports to a 10-year low.
OPEC’s smallest producer Gabon pumped less because of a workers’ strike, which cut output for part of the month.
The Reuters survey is based on shipping data provided by external sources, Thomson Reuters flows data, and information provided by sources at oil companies, OPEC and consulting firms.
NLNG Boosts Cooking Gas Production to 1.5 Million Metric Tonnes Annually
Nigeria Liquefied Natural Gas Limited (NLNG) has announced a significant milestone in its operations, boosting its annual production of liquefied petroleum gas (LPG), commonly known as cooking gas, to over 1.5 million metric tonnes.
This surge in production underscores NLNG’s commitment to meeting the rising demand for clean cooking energy in Nigeria.
The entirety of NLNG’s 1.5 million tonnes production is now being sold domestically within Nigeria.
Moreover, the company has initiated a landmark shift by starting to supply LPG in naira, moving away from the traditional practice of trading in United States dollars.
This move aligns with calls from stakeholders in the oil and power sectors advocating for naira transactions, especially amidst the challenges posed by currency fluctuations.
During a panel session at the 7th Nigeria International Energy Summit in Abuja, NLNG’s General Manager of Finance, Fatima Adanan, highlighted the company’s dedication to enhancing LPG penetration across the country.
Adanan emphasized NLNG’s vision to make Nigeria a better place by promoting the use of cleaner energy sources like gas.
While NLNG’s production surge is commendable, Adanan acknowledged that Nigeria’s LPG requirements surpass the current output, necessitating imports to bridge the gap.
However, NLNG remains committed to expanding its production capacity to meet the nation’s energy needs and drive increased adoption of LPG as a cleaner cooking fuel.
CBN Raises Benchmark Interest Rate by 400 Basis Points to 22.75%
The Central Bank of Nigeria (CBN) has raised the benchmark interest rate by 400 basis points to a record 22.75%.
The decision made by the Monetary Policy Committee (MPC) comes amidst rising inflationary pressures and growing uncertainty in Africa’s largest economy.
Nigeria’s inflation rate rose to 29.90% in January 2024, the highest in over two decades while the nation’s unemployment rate quickened to 5% in the third quarter of 2023. Suggesting that the rising costs have continued to drag on both new job creation and the existing ones.
This coupled with a series of policy adjustments implemented by President Bola Ahmed Tinubu has plunged economic productivity and eroded consumer spending as citizens grapple with high fuel prices, electricity tariffs, a record-high foreign exchange rate, and insecurities.
Therefore, it is surprising that the Monetary Policy Committee (MPC) led by the CBN will further increase borrowing costs by 400 basis points at a time when job creation is paramount.
While the economy reportedly grew by 3.46% in the fourth quarter (Q4) of 2023 on the back of robust performance of the services sector, this growth is yet to crystalise as businesses and citizens have taken to the street protest against the harsh economic situation.
Economic experts have started questioning the data from the National Bureau of Statistics (NBS) given its lack of correlation between the data and economic reality.
President Tinubu Unveils Geometric Power Plant in Aba After 20-Year Wait
After two decades of anticipation, President Bola Tinubu, through his representative Vice President Kashim Shettima, inaugurated the long-awaited Geometric Power Plant in Aba, a significant milestone in the city’s quest for reliable electricity supply.
The event, which also saw the commissioning of three rehabilitated roads by Abia State Governor Alex Otti, symbolizes the culmination of years of perseverance and determination to transform Aba’s power landscape.
Addressing the audience, Vice President Shettima hailed the project as a testament to the power of visionary leadership and unwavering commitment to progress.
He said the Geometric Power Plant exemplifies the transformative impact of strategic infrastructure investments on local communities.
Governor Otti echoed similar sentiments, emphasizing the importance of the power project in positioning Aba as a hub for national and international business ventures.
He commended the efforts of Geometric Power Limited while urging them to uphold transparency and avoid exploiting consumers.
The inauguration of the Geometric Power Plant comes amidst growing concerns over Nigeria’s power infrastructure and the need for sustainable solutions to address electricity shortages.
The project, with a capacity of 188MW, holds promise for significant improvements in power supply across Abia State, benefitting nine out of seventeen local government areas.
The Managing Director of Geometric Power Limited, Ben Caven, underscored the scale of investment involved, totaling $800 million.
He highlighted the comprehensive nature of the project, which includes the installation of new power substations and a 27km natural gas pipeline, signaling a comprehensive approach to enhancing Aba’s energy infrastructure.
In conclusion, the inauguration of the Geometric Power Plant represents a transformative moment for Aba, offering renewed hope for economic growth and prosperity powered by reliable electricity supply.
Naira6 days ago
Black Market Dollar to Naira Exchange Rate Today, February 26th, 2024
Naira2 days ago
Black Market Dollar to Naira Exchange Rate Today, March 1st, 2024
Naira4 weeks ago
Dollar to Naira Black Market Today, February 5th, 2024
Forex3 weeks ago
CBN Mandates Nigerian Banks to Pay International Transfers in Naira
Fintech2 days ago
OPay Urges Customers to Complete BVN, NIN Verification Following CBN Directive
Naira4 weeks ago
Dollar to Naira Black Market Today, February 6th, 2024
Cryptocurrency3 days ago
Binance Disables Naira Feature to Halt Possible Capital Outflow
Naira3 weeks ago
Dollar to Naira Black Market Today, February 8th, 2024