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Nigeria Tops India’s Africa Export with $9.949bn

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  • Nigeria Tops India’s Africa Export with $9.949bn

Nigeria has continued to outpace other African countries in export to India with $9.949 billion in exports last year.

This represents 31.4 per cent of the total export to India from Africa.

Head of Chancery at the High Commission of Indian, Lagos, Mr. Jagdeep Kapoor, who stated this at the Indian products and services exhibition held in Lagos, called on Indians to invest in Nigeria adding that relations between both countries has existed for decades.

He stated that the recent visit of the Indian Vice President to Nigeria has also given a boost to Nigeria, Indian bilateral relations.

According to him, “India as we know is Nigeria’s largest trading partner. Total trade between the two countries in the financial year 2015-16 was $643.3 Billion. Crude oil is the largest item exported from Nigeria to India, while Vehicles, Pharmaceutical products and Machinery have been the largest items exported from India to Nigeria. India exported about 419 million dollar worth of vehicles including parts and accessories to Nigeria during the financial year 2015-16. Similarly about 393million dollar worth of Pharmaceuticals were exported from India to Nigeria and roughly 267 Million dollar worth of machinery and appliances.

“You will notice that these are the three main products we have tried to highlight in the present exhibition through the individual companies participating today. Telecom, Hospitals, Education, Insurance and Banking occupy the leading positions in the services sector, which again are visible in this Exhibition. This year the plan is to consolidate on what we are already exporting to Nigeria and maybe next year we will diversify into other fields like software, hospitality, construction and entertainment. A large Nigerian delegation led by Minister of Industry, Trade & Investment visited India to attend the 11th CII-EXIM Bank Conclave held in New Delhi on 14-15 March, 2016 as a partner country.”

While calling on more Indian companies to come to Nigeria to do business, he said: “The High Commission can only pave the way. It is for the companies participating today to consolidate on the opportunities presented through this Exhibition and move forward. Gains made at such exhibitions are not generally tangible in the beginning, but believe me; they definitely translate into showcasing your capabilities and with time and perseverance help in reaching the objective of increased trade and business. I have said this at different fora that it is the Indian exhibitors who are the true Ambassadors. Guests will view India through the products and services you display here today and form an opinion about India based on what you present. My humble request is to keep the Indian flag flying high and make us all Indians proud.”

Minister of Power, Works and Housing, Babatunde Fashola had while speaking at the West Africa-Indian Trade and Economic Forum recently revealed the possibility of increase market access opportunities between India and countries within the sub-region, in terms of improved terms of trade, would be imperative to increase production efficiency and competitiveness through infrastructural development.

He said it was important and necessary to address market access constraints and Non- Tariff Barriers (NTB) that hinder the free movement of goods and services across the region’s frontiers, as particular attention should be paid to the inherent supply side constraints in the West African Community in the course of the business forum.

“There is no doubt that there would be challenges to the implementation of the resolutions that may be reached at the end of this forum on issues such as finance, technical assistance and capacity building of the private sector. “We therefore enlist the support and cooperation as well as assistance of our development partners to governments and the private sectors of West Africa in this regard, “he added.

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

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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Crude oil

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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