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Oil Trades Above $58 as U.S. Stockpile Draw Boosts OPEC Optimism



Oil glut
  • Oil Trades Above $58 as U.S. Stockpile Draw Boosts OPEC Optimism

Oil held near a two-year high as U.S. crude inventories shrank, adding to optimism that OPEC’s output curbs are working as the group prepares to meet and discuss extending its reductions beyond March.

Futures rose 0.3 percent in New York after gaining 3.4 percent over the previous two sessions. Crude stockpiles fell by 1.86 million barrels last week, the Energy Information Administration said Wednesday. Ministers from six OPEC countries and Russian Energy Minister Alexander Novak are holding informal talks in Bolivia a week before a group meeting in Vienna.

The U.S. benchmark closed above $58 a barrel for the first time since mid-2015 on Wednesday amid signs that the Organization of Petroleum Exporting Countries and its allies may agree to prolong curbs. Prices are up 7 percent this month.

“U.S. fundamentals have stabilized over the last two weeks,” said Olivier Jakob, managing director at consultants Petromatrix GmbH in Zug, Switzerland.

West Texas Intermediate for January delivery was at $58.22 a barrel on the New York Mercantile Exchange at 8:34 a.m. local time, up 20 cents. The contract advanced $1.19 to $58.02 on Wednesday. There’ll be no settlement Thursday because of the Thanksgiving holiday in the U.S. and all transactions will be booked Friday. Total volume traded was about 46 percent below the 100-day average.

Brent for January settlement fell 7 cents, or 0.1 percent, to $63.25 a barrel on the London-based ICE Futures Europe exchange, after rising 75 cents on Wednesday. The global benchmark crude was at a premium of $5.07 to WTI.

U.S. crude inventories declined to about 457.1 million barrels in the week ended Nov. 17, according to the EIA. Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest oil-storage hub, slid by 1.83 million barrels, the largest draw since July. Still, American output surged for a fifth week to 9.66 million barrels a day.

Oil-market news:

  • Working rigs drilling for crude in the U.S. rose by nine to 747 this week, Baker Hughes said.
  • Venezuelan Oil Minister Eulogio Del Pino, speaking at a natural-gas conference in Bolivia, said he sees oil’s equilibrium price at $60 to $70 a barrel as global inventories drain, according to a ministry statement.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Slide as U.S. Crude Stockpiles Surge, Heightening Demand Concerns



Crude oil

Oil prices declined on Thursday as concerns over demand intensified due to a larger-than-anticipated build in U.S. crude stockpiles.

Brent crude oil, against which Nigerian oil is priced, dropped by 0.5% to $83.25 a barrel while U.S. West Texas Intermediate crude oil fell by 0.3% to $78.28 a barrel.

The Energy Information Administration’s report revealed a substantial increase in U.S. crude oil stockpiles by 4.2 million barrels to 447.2 million barrels for the week ending February 23rd.

This surge surpassed analysts’ expectations and marked the fifth consecutive week of rising inventories.

While gasoline and distillate inventories witnessed a decline, concerns regarding a sluggish economy and reduced oil demand in the U.S. were amplified.

Satoru Yoshida, a commodity analyst with Rakuten Securities, highlighted that the significant stockpiles have heightened investor worries.

Moreover, the anticipation of delayed U.S. interest rate cuts further weighed on market sentiment, potentially undermining oil demand.

Traders have adjusted their expectations for rate cuts, with an easing cycle predicted to commence in June rather than March as previously anticipated.

Market participants await the U.S. personal consumption expenditures price index for insights into inflation trends, while the possibility of an extension of voluntary oil output cuts from OPEC+ looms over price dynamics, amid lingering uncertainty in the demand outlook and geopolitical tensions in the Middle East.

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Crude Oil

Crude Oil Shortage Threatens Dangote, Government Refineries, Minister Raises Alarm



Dangote Refinery

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has sounded a clarion call over a looming crude oil shortage that threatens the operations of the newly inaugurated Dangote Petrochemical Refinery and government-owned refineries in Nigeria.

Addressing stakeholders at the seventh edition of the Nigeria International Energy Summit in Abuja, Minister Lokpobiri expressed concerns that unless deliberate efforts are made to increase investments and crude oil production, these refineries may struggle to obtain enough feedstock for petroleum product manufacturing.

The Dangote refinery, a colossal project spearheaded by Dangote Industries Limited, has a daily requirement of up to 650,000 barrels of crude oil, while government-owned refineries could need approximately 400,000 barrels.

However, the current pace of crude oil production and investment in Nigeria falls short of meeting these demands.

Minister Lokpobiri highlighted the need to ramp up production and attract investments in the upstream sector to ensure adequate feedstock supply for the refineries.

He emphasized the importance of efficiently utilizing Nigeria’s abundant oil and gas reserves to enhance domestic energy security and economic prosperity.

Furthermore, the minister underscored the significance of investing in energy infrastructure and transitioning towards more environmentally friendly practices to address Nigeria’s energy needs effectively.

The alarm raised by Minister Lokpobiri underscores the urgency for strategic interventions and collaborative efforts to mitigate the impending crude oil shortage and secure the future of Nigeria’s refining industry amidst evolving global energy dynamics.

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NNPCL Pledges End to Nigeria’s Energy Scarcity Within a Decade



Mele Kyari - Investors King

The Nigerian National Petroleum Company Limited (NNPCL) has announced a bold initiative aimed at ending Nigeria’s persistent energy scarcity within the next decade.

Mele Kyari, the Group Chief Executive Officer of NNPCL, revealed this ambitious plan during the opening ceremony of the seventh Nigerian International Energy Summit in Abuja.

Kyari’s announcement comes as a beacon of hope for millions of Nigerians grappling with chronic power shortages and energy deficiencies.

In his statement, Kyari expressed confidence that all issues related to energy scarcity in the country would be resolved within the next 10 years.

Assuring stakeholders of NNPCL’s unwavering commitment, Kyari emphasized the company’s dedication to collaborating with partners to bridge the energy deficit gap and foster prosperity for all Nigerians.

He highlighted NNPCL’s pivotal role as a key partner to oil-producing companies in Nigeria, facilitating the divestment of international oil companies from onshore and shallow water assets in the country.

Furthermore, Kyari underscored NNPCL’s statutory mandate as the enabler of national energy security, emphasizing the importance of sustainable production from divested assets to ensure energy security for Nigerians.

In addition to addressing domestic energy challenges, NNPCL is also exploring avenues for sustainable energy investment across Africa.

Kyari revealed the company’s intention to invest in the proposed African Energy Bank, aiming to secure funding for energy projects on the continent and guarantee regional energy security.

The event, attended by prominent stakeholders including government officials and representatives from international organizations, marks a significant step towards reshaping Nigeria’s energy landscape and fostering economic development through improved energy access.

As NNPCL charts its course towards energy abundance, Nigerians remain cautiously optimistic about the prospects of a brighter energy future.

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