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Brent Crude Rises To $37 a Barrel Ahead of OPEC Meeting



  • Brent Crude Rises To $37 a Barrel Ahead of OPEC Meeting

The Brent Crude oil rose from $33.59 per barrel it traded on Wednesday to $37.84 on Monday during the Asian trading session.

Brent crude oil, against which Nigerian oil is priced, rose ahead of OPEC and allies meeting scheduled for this week as investors and traders await additional production cuts or better compliance levels.

UKOilDailyOil price had erased over 61 percent of its market value this year due to the COVID-19 pandemic that plunged its market demand and weighed on the entire global economy.

With global oil supply rising to a recorded high in April, OPEC plus was forced to agree to a 9.7 million barrels per day production cuts from the month of May. An agreement the members are looking to solidify this week, especially after data shows compliance level was just 74 percent in the month.

Countries like Nigeria, Iraq and other oil-producing nations struggling with fiscal buffers needed to cushion the negative impact of COVID-19 failed to comply with the accord in April.

Nigeria’s compliance level was 19 percent while the Iraq compliance level stood at about 38 percent, according to a survey published by Reuters.

The group managed to cut just 5.91 million barrels per day to a production level of 24.77 million bpd in April, about 4.48 million bpd below the 9.7 mbpd the group agreed to cut.

However, despite the low compliance level, the 24.77 mbpd recorded in April was the lowest for the group since 2002. Highlighting the reason for the noticeable surge in crude oil price on Monday.

Experts are now predicting better compliance, especially with the projected surge in demand due to the increase in numbers of nations reopening for business activities.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Prepaid Meter is Free, Buhari Warns DisCos, Agents



prepaid meter

President Muhammadu Buhari once again warned Power Distributing Companies (DisCos) and their agents selling prepaid meters to electricity customers against the Federal Government directive that meter is free.

Ahmed Rufai Zakar, the Special Adviser to the President on Infrastructure, who represented Buhari at the FGN/NLC-TUC ad-hoc committee on electricity tariff stakeholders held in Ibadan, Oyo State on Wednesday, said President Buhari understood people’s concerns on issues surrounding electricity and was determined to curb and deal with unscrupulous individuals in the power sector.

He said, “We have made it very clear through the regulators direct order as well as intervention from the Ministry of Power that the meters are to be provided to Nigerians at no cost.

“Even for meters that were paid for, there is the directive from the regulator to the discos that they would need to find a way to reimburse those citizens over time.

“In cases where we find any disco or disco representative selling the meters or exploiting Nigerians to be able to get meters by paying, we would take the full measures of the law.

“The President has mandated that these meters must be free. We have also said that they must come from local manufacturers.

“This would create jobs and revive our industry.”

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Nigeria’s Real Estate Sector Shrinks by 8.06% in the Third Quarter -NBS



Economic uncertainty plunged Nigeria’s real estate sector by 8.06 percent in the third quarter of the year, according to the National Bureau of Statistics (NBS).

Nigeria’s statistics office said “In nominal terms, real estate services recorded a growth rate of –8.06 per cent in the third quarter of 2020, indicating a decline of –11.78 per cent points compared to the growth rate at the same period in 2019, and by 9.12 per cent points when compared to the preceding quarter.

“Quarter-on-quarter, the sector growth rate was 18.92 per cent.

“Real GDP growth recorded in the sector in Q3 2020 stood at -13.40 per cent, lower than the growth recorded in third quarter of 2019 by –11.09 per cent points, but higher relative to Q2 2020 by 8.59 per cent points.

“Quarter-on-quarter, the sector grew by 17.15 per cent in the third quarter of 2020.

“It contributed 5.58 per cent to real GDP in Q3, 2020, lower than the 6.21 per cent it recorded in the corresponding quarter of 2019.”

Nigeria’s economy contracted by 2.48 percent in the first nine months following a 6.10 percent and 3.62 percent contraction in the second and third quarters respectively.

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Nigeria Requires N400 Billion Annually to Maintain Federal Roads -Senator Bassey




The Chairman of the Senate Committee on road maintenance, Senator Gersome Bassey, on Friday said Nigeria requires about N400 billion annually to maintain federal roads across the country.

The Senator, therefore, described the N38 billion budgeted for road repairs in the 2021 proposed Budget as grossly inadequate. According to him, nothing meaningful could be achieved by the Federal Roads Maintenance Agency (FERMA) with such an amount.

He said, “For the 35 kilometres federal roads in the country to be motorable at all times, the sum of N400bn is required on yearly basis for maintenance.”

Bassey “What the committee submitted to the Appropriation Committee in the 2021 fiscal year is the N38bn proposed for it by the executive which cannot cover up to one quarter of the entire length of deplorable roads in the country.

“Unfortunately, despite having the power of appropriation, we cannot as a committee jerk up the sum since we are not in a position to carry out the estimation of work to be done on each of the specific portion of the road.

“Doing that without proposals to that effect from the executive, may lead to project insertion or padding as often alleged in the media.”

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