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Crude Oil Price Rises Towards $59 Per Barrel

Published

7 years ago

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Petrol - Investors King
  • Crude Oil Price Rises Towards $59 Per Barrel

Crude oil price rose towards $59 per barrel wednesday to sustain Tuesday’s rallies where it gained one per cent after the Saudi Energy Minister, Khalid al-Falih, said the focus remained on reducing oil stocks in industrialised countries to their five-year average.

The minister’s statement had raised the prospect of prolonged output restraint once the supply-cutting pact led by the Organisation of Petroleum Exporting Countries (OPEC) ends.

This is coming as the Nigerian National Petroleum Corporation (NNPC) has restated the commitment of the country to exit petroleum products importation in the medium term and urged downstream operators to invest heavily in retail outlets to take advantage of the potential opportunities.

Oil prices have maintained multi-week highs with Brent crude at $58.41 per barrel, and US crude at $52.46.

Khalid al-Falih told Reuters at an investor conference in Riyadh on Tuesday that global oil demand was expected to grow by 45 per cent by 2050 despite an international push for using more renewable sources of energy.

OPEC, Russia and nine other producers, have cut oil output by about 1.8 million barrels per day (bpd) since January.

The pact runs to March 2018 and they are considering extending it.

In a related development, the NNPC has restated that Nigeria would exit petroleum products importation in the medium term and called on downstream operators to invest heavily to take advantage of the commercial opportunities.

Speaking yesterday in Lagos at the inauguration of the state-of-art mega filling station built by Emadeb Energy Services Limited, the Managing Director of Pipelines and Product Marketing Company (PPMC), a subsidiary of NNPC, Mr. Umar Ajiya, stated that the corporation did not intend to be the sole importers of petrol in the country.

Ajiya commended Emadeb Energy for the huge investment and called on other downstream operators to take advantage of the opportunities that would arise when NNPC exited importation.

“We will exit the import era perhaps in the medium term and with the retail outlets, you will still have a business model that works because if you only stay at the coast and tank farm, where that tank farm is unable to export, it means your business has come to a stop,” Ajiya explained.

“Our intentions to exit petroleum products importation in the medium term will entail that people who don’t go downstream perhaps will not have a role to play in the market. What Emadeb is doing today is in the right direction and we commend them,” he added.

Also speaking at the event, the Managing Director in charge of Retails for Emadeb Energy Services, Mrs Olugbesoye Olujimi, noted that the company’s integrity had sustained it in the business in the face of the dwindling margins in the downstream sector.

She said: “Yes, there are low margins, especially when you have to transport products from Lagos to the North. But like I said, we are truthful and the integrity makes the turnover a bit higher.

In Emadeb, integrity is our watchword. The catch phrase in Emadeb is ‘powered by integrity’. So, we are powered by integrity. The banks know us that when Emadeb says ‘please give me a line to trade, Emadeb will trade purely with the line and then we pay.’ We don’t divert whatever funds we are given to do what we need to do. Our bankers – FCMB, Union Bank, GTB can testify to that.”

In his keynote address, the Group Managing Director of the company, Mr. Adebowale Olujimi said his company’s target was to acquire and brand at least 10 more mega stations across the geographical zones of the country in the next 24 months.

The 270,000 litres capacity outlet located along Oshodi-Apapa expressway, has 16 petrol, two kerosene and two diesel nozzles.

A former Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Reginald Stanley, said in his remarks that when he championed the entry of independent marketing companies in the distribution of petroleum products as a young graduate in the NNPC in the 1980s, the oil majors that had dominated the downstream business opposed him.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Petrol

There Won’t Be Fuel Scarcity In Nearest Future, Major Marketers Assure Nigerians

Published

10 hours ago

on

October 31, 2024

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petrol

Nigerians have been urged to refrain from panic purchase of Premium Motor Spirit popularly known as petrol.

Major petroleum marketers made this known while assuring the public that there is more than enough petrol supply across the country.

The Chief Executive Officer of the Major Energy Marketers Association of Nigeria, Clement Isong, maintained that sufficient stock is available in the tanks of the Dangote Refinery and the Nigerian National Petroleum Company Limited.

Isong added that there is a reliable forecast of future supplies for all petroleum products.

Reacting to perceived tightening in the petroleum supply market, the major energy marketers dismissed speculation that there would be shortage of fuel, affirming to the general public and all stakeholders that there is substantial stocks of products in their tanks.

He added that they have access to considerable stocks in the tanks of their suppliers, including Dangote Refinery and NNPC Trading Limited, along with a reliable forecast of future supplies for all petroleum products.

Isong noted that deregulation enables diligent marketers to plan and secure their supply needs in advance, helping prevent shortages.

Consequently, he stated that MEMAN does not anticipate any petrol scarcity in the immediate or near future.

Encouraging Nigerians to refrain from panic buying, the MEMAN CEO assured them that member companies will continue to optimise their supply and logistics to ensure availability and affordability.

Following the NNPC’s increase in petrol prices across the country on Tuesday, long queues were observed at its retail outlets in Lagos and Abuja on Wednesday.

The national oil firm raised the retail price of petrol in Abuja from N1,030 to N1,060 per litre, while in Lagos, the price increased from N998 to N1,025 per litre, sparking widespread criticism from the Organised Private Sector, Civil Society Organisations, and the general public.

Nigerians have faced recurring fuel crises since May this year for various reasons despite government promises to resolve the situation.

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Crude Oil

Oil Prices Rise 2% on Positive Crude Inventories Data, Tight Supply Expectations

Published

19 hours ago

on

October 31, 2024

By

Crude oil gains

Oil prices rose more than 2 percent on Wednesday after data showed crude and inventories fell unexpectedly last week and reports that the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ may delay a planned oil output increase.

Brent crude futures settled up $1.43, or 2.01 percent, at $72.55 a barrel and the US West Texas Intermediate (WTI) crude rose $1.4, or 2.08 percent to $68.61.

The US Energy Information Administration (EIA) reported an inventory draw of a modest half a million barrels for the week to October 25.

The change in oil stocks compared with a build of 5.5 million barrels for the previous week, pressured oil prices at the time.

The American Petroleum Institute (API), meanwhile, on Tuesday reported estimated inventory draws across crude and fuels, helping prices move higher for a time. However, they remained subdued due to expectations of a ceasefire in the Middle East.

The country’s petrol stocks shed 2.7 million barrels in the week to October 25, with production at an average of 9.7 million barrels daily. These figures compared with an inventory build of 900,000 barrels for the previous week, when production stood at an average of 10 million barrels daily.

Pressure also came as the market learned that OPEC+ could delay a planned oil production increase in December by a month or more because of concern over soft oil demand and rising supply.

Traders are betting that OPEC+ will hold off on the planned increase, deferring to Saudi Arabia’s top-down approach since the country acts as the de facto leader of the group and has always stepped in to help the alliance when it is underperforming.

The group is scheduled to raise output by 180,000 barrels per day in December. OPEC+ has cut output by 5.86 million barrels per day, equivalent to about 5.7 per cent of global oil demand.

OPEC Monthly Oil Market Report downgraded demand growth for 2024 to 1.9 million barrels per day while demand forecasts for 2025 slipped another 102,000 barrels per day to 1.6 million barrels per day.

China, meanwhile, ramped up imports by 16 per cent month over month in August, but the rise still falls short of August 2023 levels, keeping a lid on demand and by extension, the market.

OPEC+ is scheduled to meet on December 1 to decide its next policy steps.

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Energy

Dangote’s Allegation of Refinery Boycott By Marketers False, Says  IPMAN President

Published

1 day ago

on

October 30, 2024

By

Petrol Importation - investorsking.com

The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Garima, has expressed shock over business mogul, Aliko Dangote’s allegation that marketers were boycotting his refinery.

Dangote, the owner of a $20bn refinery had claimed that oil marketers in Nigeria have been avoiding his refinery for imported petrol.

He had lamented that such a move would impact negatively on the country’s economy and would discourage local investment.

Responding, however, IPMAN President said the allegations were false.

According to Garima, while speaking on a live telephone programme monitored by Investors King on Wednesday, IPMAN members are not importing petrol.

On the contrary, he disclosed that oil members can’t load petrol from the Dangote Refinery in Lagos despite having paid ₦40billion to the Nigerian National Petroleum Company Limited (NNPCL).

He said rather than get Dangote petrol through the NNPCL, the private refinery should register independent petrol marketers directly for smooth loading of the product.

The IPMAN boss noted that if Dangote could be able to sell the product to oil marketers directly, they can buy the product.

He expressed frustration in the fact that marketers had to pay before they pick, adding that “Presently, we have ₦40bn under the NNPCL custody but we cannot source the product.”

Garima explained how some marketers that NNPCL sent to load in Dangote refinery stayed with their trucks for four days, and they cannot load.

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