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Nigeria Gains $22m From Bonny Light Crude

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OPEC
  • Nigeria Gains $22m From Bonny Light Crude in December

The price of Nigeria’s Bonny Light crude oil was the second highest in December among members of the Organisation of the Petroleum Exporting Counties (OPEC), rising from $42.20 in November to $53.91 per barrel.

This means the country gained about $11.71 per barrel in December. Nigeria therefore, may have added $22 million to its foreign exchange earnings when multiplied by current production of 1.9 million barrels per day in December.

The gain also boosts Nigeria’s capacity to fund its N7.3 trillion 2017 budget, and if the gains continue, may reduce the dependence on external borrowings to fund the budget and other development projects.

Besides, the World Bank expects oil prices to average $55/barrel in 2017, an increase of 29 per cent above the 2016 average price.Also, Global crude oil balances is expected to tighten through 2018, the United States Energy Information Administration (EIA) said last week in a statement.

Analysis from OPEC reference basket revealed Abu Dhabi’s Murban crude oil as the only blend ahead of Bonny Light at the international market in December.

Giving a full year analysis of the price movement, OPEC said the light sweet crude from West and North Africa’s Basket components, Saharan Blend, Es Sider, Girassol, Bonny Light and Gabon’s Rabi, gained $8.53, or 19.1 per cent, to $53.10 during the month under review.

Speaking on rebalancing the oil market, the Secretary-Generals of OPEC, Muhammad Barkindo, said it is essential that all producers, both OPEC and non- OPEC, take coordinated action to return stability to the market.

“This is not only vital for the short term, but the long term too, as our industry looks to fund investment in new exploration and production, arrest decline rates in existing fields, expand midstream and downstream capacity, and hire, train and support the people that will continue to drive this industry forward in the years ahead.”

Meanwhile, the World Bank said in its Commodity Markets Outlook for 2017 released last Wednesday, that the increase largely reflects partial compliance to the recent agreement between OPEC and non-OPEC producers.

According to World Bank, the market is expected to tighten in 2017, particularly in the second half of the year, which would reduce the large stock overhang.

It added that onshore U.S. lower-48 states oil production, including shale, is projected to bottom out in the second quarter of 2017, and rise moderately thereafter.

The Bank noted that prices may increase to $60 barrels in 2018, assuming a balanced market and no additional OPEC supply restraint.It stated: “Crude oil prices jumped 10 per cent in the fourth quarter, averaging $49.1 barrels, following agreements by both OPEC and non-OPEC producers to reduce output by nearly 1.8 million barrels per day in the first half of 2017.

“The oil market continues to rebalance amid steady demand growth, while sharply lower in- vestment in non-OPEC countries has led to lower production, notably in the U.S. shale oil sector.”

Also, the EIA estimates that crude oil and other liquids inventories grew by two million barrels per day (bpd) in the fourth quarter of 2016, driven by an increase in production and a significant, but seasonal, drop in consumption.

Global production and consumption are both projected to increase through 2018, but consumption is expected to increase at a faster rate than production. As a result, global balances are expected to tighten.

The EIA noted that the production increase in the fourth quarter of 2016 largely reflects members of OPEC ramping up production in advance of implementing the November agreement on production cuts.

Nigeria’s Petroleum Resources Minister, Dr Ibe Kachikwu, had expressed optimism that the price of crude would rise to a level that is neither too high nor too low.

He said although crude oil appears to have fallen into bad times because of prevailing low price and the campaign against the use of fossil fuels for environmental reasons, the product would soon rise up to take its place as the prime global energy source.

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.

Economy

COVID-19: Nigeria Record Highest New Cases on Thursday as Continent Death Nears 83,000

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COVID-19: Nigeria Record Highest New Cases on Thursday as Continent Death Nears 83,000

The largest African economy, Nigeria recorded her highest ever COVID-19 new cases on Thursday, 21st of January.

Nigeria recorded her highest daily count of 1,964 new COVID-19 cases on Thursday, this was 300 higher than the previous high record of 1,664 new COVID cases it recorded on the 7th of January, 2021.

The country has recorded a total of 116,655 cases, 93,646 recoveries and, 1,485 deaths across the states since the outbreak of the Corona Virus.

According to health experts, the daily increase of new cases in the new year could be ascribed to the massive gatherings during the festive season, the relaxation of COVID-19 protocols in the various parts of the country, and in the two major airports, Lagos and Abuja airport.

The adverse effect of the global health pandemic has seen Africa recorded 82,781 COVID-19 death cases across the continents.

Confirmed Cases of COVID-19 from 55 African countries reached 3,364,031, reported deaths were 82,781 and, 2,809,825 were reported to have recovered as of January 22, 2021

The Africa country with the most reported COVID-19 cases in South Africa with a total of 1,380,807 cases of which 39,501 are death cases. Other most-affected countries are Morocco (463,706), Tunisia (190,884), Egypt (159,715), Ethiopia (132,326), and Nigeria (116,655).

The numbers are compiled by the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University (world map) using statistics from the World Health Organization and other international institutions as well as national and regional public health departments.

 

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Economy

The 46th President of the USA, Joe Biden Reversed EX-President Donald Trump Immigrant Visa Ban on Nigeria

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Joe Biden Economic Impliccations on Nigeria

The 46th President of the USA, Joe Biden Reversed EX-President Donald Trump Immigrant Visa Ban on Nigeria

On his first day in office, the 46th President of the United States of America reversed the immigrant visa ban placed on Nigeria and other countries by the former president, Donald Trump.

The executive order, 9983, issued by the former president Donald Trump on January 31st, 2020, unveiled the ban on immigrant visas to six countries; Myanmar, Eritrea, Nigeria, Sudan, Tanzania, and Kyrgyzstan.

Amongst numerous executive orders signed by the new president of the United State, Joe Biden, on January 20th, was the reversal of some of the orders issued by his predecessor, Donald Trump, which bans citizens of certain countries from accessing the immigrant visa.

According to the Trump administration, a system was established to access three important criteria-

“whether a foreign government engages in reliable identity-management practices and shares relevant information; whether a foreign government shares national security and public safety information; and whether a country otherwise poses a national security or public-safety risk.”

The failure of Nigeria and other countries to measure up to this criteria landed them on the ban list.

Biden’s Press secretary, Pen Psaki said additional action which will ensure that the president-elect delivers his promise to the American people will be announced.

“In the coming days and weeks, we will be announcing additional executive actions that confront these challenges and deliver on the president-elect’s promises to the American people,” Pen said.

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Economy

Buhari to Spend N729 Billion on 24.3 Million Poor Nigerians

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Buhari to Spend N729 Billion on 24.3 Million Poor Nigerians

President Buhari is working on spending N729 billion on 24.3 million poor Nigerians despite the present economic recession, weak industries and zero new job creation.

Sadiya Farouq, the Minister of Humanitarian Affairs, Disaster Management and Social Development, disclosed this during the inauguration of the Federal Government’s emergency intervention database for the urban poor.

In a statement released by Nneka Anibeze, the Minister’s Aide, the financial intervention would help cushion the impact of the COVID-19 pandemic on identified people.

According to the Minister, the Federal Government would disburse N5,000 each to 24.3 million poor and vulnerable Nigerians for a period of six months. A total of N729 billion.

In part, the statement reads, “According to records, about 24.3 million poor and vulnerable individuals were identified at the end of 2020 and registered into the National Social Register.

“Each beneficiary will receive N5,000 for a period of six months.

The government is embarking on handouts despite the nation’s fiscal challenges and economic recession. The N5,000 or N729 billion can help build or support available industries, fast track economic recovery and improve job creation against sharing it with people it will has little to zero impact on their lives.

This is one of the numerous leakages being addressed by the same administration. The database can not be verified neither are the people to be paid.

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