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Prices of Petroleum Products Increase by 24.20, 9.28 Percent in October

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  • Prices of Petroleum Products Increase by 24.20, 9.28 Percent in October

The average prices of National Household Kerosene, Liquefied Natural Gas also known as cooking gas, and Automotive Gas Oil (diesel) increased by 3.39, 24.20 and 9.28 per cent respectively during the month of October, latest data from the National Bureau of Statistics has shown.

The monthly report released Wednesday, revealed that the average price per litre paid by consumers for kerosene increased by 3.39 per cent from N264.48 in September 2017 to N273.44 in October 2017.NBS put the States with the highest average price per litre of kerosene to be Oyo, N324.76, Borno, N323.61; and Rivers, N320.37.

States with the lowest average price per litre of kerosene were Osun, N233.33; Ondo, N237.50; and Enugu, N237.78.Also, average price per gallon paid by consumers for kerosene increased by 6.31 per from N973.72 in September 2017 to N1,035.12 in October 2017.The agency listed the States with the highest average price per gallon of kerosene to include Adamawa, N1,185.83; Benue, N1,175.00; and Ondo, N1,160.00.

States with the lowest average price per litre of kerosene were Lagos, N912.11; Sokoto, N918.33; and Anambra, N927.00.Similarly, the average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) increased by 24.20 per cent from N 1,911.44 in September 2017 to N2, 374.07 in October 2017.

According to NBS, States with the highest average price for the refilling of a 5kg cylinder for cooking gas during the month under review were Bauchi & Osun, N2,500.00; Yobe, N2,433.33; and Katsina, N2,412.50.

States with the lowest average price for the refilling of a 5kg cylinder for cooking gas were Taraba & Oyo, N2,200.00; Sokoto & Ebonyi, N2,300.00; and Benue, N2,328.57.Moreover, average price fort he refilling of a 12.5kg cylinder for cooking gas decreased by 2.60 per cent from N3,937.71 in September 2017 to N4,561.14 in October 2017.

States with the highest average price for the refilling of a 12.5kg cylinder for cooking gas were Sokoto, N4,766.67; Abia, N4,712.50; and Anambra, N4,692.31.States with the lowest average price for the refilling of a 12.5kg cylinder for cooking gas were Nasarawa, N4,359.38; Kano & Bayelsa, N4,400 and Kebbi, N4,420.00.

Also, the average price paid by consumers for Automotive Gas Oil (diesel) increased by 9.28 per cent from N 184.80 in September 2017 to N201.96 in October 2017.NBS put the States with the highest average price of diesel to include Jigawa, N222.08; Zamfara, N218.75; and Adamawa, N217.50.

While the States with the lowest average price of diesel were Cross River, N190.29; Delta, N190.06; and Borno, N189.69. The price paid by consumers to buy a litre of Premium Motor Spirit (PMS) also known at petrol, increased by 0.1 per cent from N144.5 in September 2017 to N146 in October 2017.

According to NBS, States with the highest average price of petrol were Yobe, N 152.50); Benue, N 150.83; and Ebonyi, N148.57.States with the lowest average price of petrol were Ekiti and Katsina, N143.73; Jigawa, N143.80 and Abuja Federal Capital Territory, N144.

Speaking recently on petroleum product supply in Nigeria, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, assured that it would ensure a hitch-free supply of petroleum products nationwide during the season. He charged that the NNPC ensure steady supply of petroleum products even well beyond the festive periods hitherto often characterized by supply hiccups.

The festive season is fast approaching, a period when almost always, people expect queues to happen. If last year you had a queue-free festive season, we want this year’s to be a season where fuel station attendants will be inviting motorists to their stand for fueling”, he charged.

Baru prodded the Petroleum Products Marketing Company (PPMC) Management to re-strategized to ensure leaner operating cost that would enable it continuously add value to the NNPC Corporate entity, adding that the company was not expected to make losses.

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 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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