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Stakeholders Advocate Future Without Oil For Nigeria

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  • Stakeholders Advocate Future Without Oil For Nigeria

Stakeholders in the real sector have said that the time has come for Nigeria to develop along the non-oil sector and build a future without oil.

The stakeholders spoke at the 2018 edition of Meet the Farmers conference held in Lagos recently.

Making a presentation at the event, the Executive Director and Chief Executive Officer, Nigerian Export Promotion Council, Mr Segun Awolowo, who was represented by the Chief Trade Promotion Officer, NEPC, Samuel Oyeyipo, said the world’s largest exporters appeared to be wealthier than other nations and only three countries in the top 20 exporting countries depended mainly on oil.

“It is time for Nigeria to plan for a future with zero oil,” he said.

Awolowo said that the council had adopted certain strategies for choosing the crops that would replace oil in the economy.

He said one of the strategies was to carefully select the sector that could guarantee significant income to replace the lost revenue from oil.

Another strategy, he said, was to look at a product or sector internationally relevant and widely traded as well as ensuring that there was relative ease of operating in that sector.

Also speaking, the Director of Investment Promotion, Nigerian Investment Promotion Council, Mr Adeshina Emmanuel, said that the secret to diversification was to promote the Small and Medium Enterprise sector by intervening in some of the challenges faced by operators and helping them to gain global mileage.

He said the conference would help in creating awareness among the small businesses and farmers in the country about the opportunities in the Dubai market as well as provide opportunities for them to meet with key government agencies, finance and economic experts. Also speaking on the sidelines of the conference, the Chairman, Wal-Wanne Group, a private anchor borrowing firm, Dr Abiso Kabir, said that the conference was a very useful one as it brought together government agencies and private firms.

He said that the forum should focus on how the challenges faced by local farmers could be ameliorated; how quality of products could be improved and how exporters and farmers could successfully export their products outside Nigeria.

In her opening remarks, the convener of the conference, and Business Lead, Crenov8 Consulting, Bola Oyedele, said that being a part of the organising team had been both a humbling and insightful journey.

She said, “As a management consulting firm for Crenov8 DMCC headquartered in Dubai, it was almost impossible to ignore the obvious gap that existed with regard to agricultural trade between Nigeria and Dubai.

“Indeed, it is discouraging to visit supermarkets in the UAE and have little or no representation of the nutrient-packed produce that come from the rich soil of Nigeria in particular and Africa in general. IAccording to her, even though Nigeria exports to Japan, Spain, India, South Korea and Brazil, and other countries in Europe and Asia, it does not export to the UAE.

In this regard, she said the conference was an initiative that fell in line with Nigeria’s new export strategy and would connect large-scale agro commodity producers from Africa to buyers within the GCC region using Dubai as a trade and logistic hub to form potential business partnerships across borders.

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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oil

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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