Connect with us

Markets

FG Releases 38.7 Million Litres of Aviation Fuel

Published

on

murtala-muhammed-international-airport-lagos
  • FG Releases 38.7 Million Litres of Aviation Fuel

In its bid to address the issue of flight cancellations occasioned by the scarcity of aviation fuel, popularly known as Jet A1, the Federal Government on Monday announced the discharge of 38.7 million litres of the commodity to major terminals across the country.

On Monday, the scarcity of Aviation Turbine Kerosene, otherwise known as Jet A1, caused flights delays at airports across the country and made some airlines to carry out outright cancellation of scheduled flights.

Oil marketers had told our correspondent that they were not importing the commodity as a result of their inability to access the United States dollar, and blamed the Central Bank of Nigeria for the worsening state of the aviation fuel scarcity.

But officials of the ministries of Aviation and Petroleum Resources stated that the government had to intervene promptly by directing the Nigerian National Petroleum Corporation to import the ATK as well as Premium Motor Spirit or petrol in order to prevent any form of fuel scarcity during the Christmas and New Year seasons.

Speaking on the development in Abuja on Monday, the Group Managing Director, NNPC, Dr. Maikanti Baru, said the discharge of 38.7 million litres of the ATK by the corporation was takento forestall shortages of the product.

According to him, the shortage of aviation fuel has led to cases of flight delays and cancellations across the nation’s airports.

Baru noted that in the build-up to the Yuletide period, the corporation had exceeded the demand of oil marketers, as it had imported about 38.7 million litres of aviation fuel, which represented about 26-day sufficiency.

He stated that on December 14, 2016, the corporation completed the discharge of 8,800 metric tonnes of Jet A1, which represented about 10.6 million litres, to major terminals in the country.

“In addition, as of this morning (Monday), 23,500 metric tonnes, which represented about 28.2 million litres, were being discharged to the major oil terminals,” the GMD said.

To sustain the tempo, Baru said the corporation had further secured the supply of additional 30,000MT vessel of the ATK or 36 million litres, which was expected to berth in the country before the end of the year.

On petrol, he said the NNPC had over 40 days’ sufficiency, adding that adequate volumes of diesel and Dual Purpose Kerosene were available to meet national demand throughout the Yuletide period and beyond.

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

The Drop in US Crude Oil Inventories Boosted Oil Prices on Wednesday

Published

on

Crude oil

The Drop in US Crude Oil Inventories Boosted Oil Prices on Wednesday

Crude oil prices rose on Wednesday following a decline in US crude inventories last week.

The American Petroleum Institute (API) had reported that United States crude oil inventories declined by 5.3 million barrels in the week ended January 22, 2021, more than a reduction of 430,000 barrels predicted by a Reuters poll.

The unexpected decline, coupled with slowing new COVID-19 cases in China, the world’s largest importer of crude oil, boosted oil prices on Wednesday.

Brent crude, against which Nigerian crude oil is measured, rose by 41 cents or 0.7 percent to $56.32 per barrel.

The U.S. West Texas Intermediate (WTI) crude oil also gained 56 cents or 1 percent to $53.17 a barrel.

WTI is slightly firmer on the back of a larger-than-expected draw in US crude inventories reported by the API, which is offset by builds in gasoline and distillates,” said Vandana Hari, oil market analyst at Vanda Insights.

The data, however, showed petrol inventories grew by 3.1 million barrels in the week, more than experts projected.

Similarly, API data revealed that distillate fuel inventories that include diesel and heating oil, jumped by 1.4 million barrels, far higher than the 361,000 barrels decline predicted. However, refinery runs declined by 76,000 barrels per day.

Market participants are now in ‘wait and see’ mode, wanting to see how lockdowns evolve in the coming weeks and months, and how successful countries are in rolling out Covid-19 vaccines,” ING economics said in a note.

Continue Reading

Crude Oil

COVID-19 Plunges Nigeria’s Oil Revenue by 41% in the First Nine Months of 2020

Published

on

naira

COVID-19 Plunges Nigeria’s Oil Revenue by 41% in the First Nine Months of 2020

Nigeria’s oil revenue declined by 41.44 percent in the first nine months of 2020 to $2.033 billion, according to the latest data from the Nigerian National Petroleum Corporation, NNPC.

This represents a decline of 41.44 percent from $3.47 billion filed in the same period of 2019 when there was no COVID-19.

In the September 2020 edition of NNPC’s Monthly Financial and Operations Report (MFOR), revenue from oil and gas rose by 16 percent to $120.49 million in the month of September, a 66 percent or $234.81 million drop from $355.3 million posted in the same month of 2019.

The global lockdowns caused by the COVID-19 pandemic plunged Nigeria’s crude oil sales and global demand for the commodity. This was further compounded by Nigeria’s high cost of production compared to Saudi Arabia, Russia and others that were offering discounts to boost sales during one of the most challenging periods in human history.

Experts like Prof. Yinka Omorogbe, President of Nigeria Association of Energy Economics, NAEE, were not surprised with the drop in earnings given the effect of COVID-19 on the world’s economy.

She, however, called for the revamp of the nation’s petroleum sector laws and diversification of the economy away from oil revenue dependence. She said “Covid-19 made 2020 a very hot year and it battered the oil industry internationally and we are not an exception; so we could not have been unaffected”.

She also said the effect of the fall “is definitely a wake-up call; we have to diversify, strengthen our other resources and capabilities”.

Omorogbe, a former NNPC Board Secretary, urged the government and the operators in the sector to look inward and think strategically, stating: “think medium term, think of where they want to be and the government, above all, must think of how best we can utilize our resources, so that we can achieve our objectives once we know and define them.

“It is a clear wake-up call, if not we will just sit here and find that we have become one of the poorest nations in the world”, she noted.

Continue Reading

Commodities

Crude Oil, Other Commodities Closing Price for Monday

Published

on

Crude oil

Crude Oil, Other Commodities Closing Price for Monday

Brent crude oil, Nigeria’s crude oil benchmark, gained 47 cents to $55.88 per barrel on Monday, while the US crude oil expanded by 50 cents to $52.77 per barrel.

Gold for February delivery fell $1 to $1,855.20 an ounce. Silver for March delivery fell 7 cents to $25.48 an ounce and March copper was little changed at $3.63 a pound.

The dollar fell to 103.80 Japanese yen from 103.83 yen. The euro fell to $1.2139 from $1.2167.

Wholesale gasoline for February delivery rose 1 cent to $1.56 a gallon. February heating oil rose 2 cents to $1.59 a gallon. February natural gas rose 16 cents to $2.60 per 1,000 cubic feet.

Continue Reading

Trending