- I’ll Tell Niger to Use Kaduna Port, Not Lagos – El-Rufai
The Governor of Kaduna State, Nasir El-Rufai, plans to send a delegation to the Republic of Niger to tell it to start receiving goods at the Kaduna Inland Dry Port instead of using the seaports in Lagos State.
El-Rufai disclosed this on Tuesday while speaking on the sidelines of the ceremony for the commencement of cargo delivery by rail to the Kaduna Inland Dry Port.
He said, “We are very grateful today’s event has opened a new vista of commercial opportunities, not only for northern businessmen but even for our neighbouring countries.
“I intend to send a delegation to the Republic of Niger to sensitise the government of that country on the opportunities of receiving their goods in Kaduna instead of Lagos and having to truck them, as well as any of their exports from Kaduna port to any part of the world.”
According to the governor, the transportation of goods from the dry port and containers from the seaport in Lagos to Kaduna by rail has confirmed that the inland dry port is functioning.
El-Rufai said, “You can ship your goods directly from Kaduna to any part of the world and you can also import goods from any part of the world directly to Kaduna without your containers or any of your goods being opened up for inspection in Lagos.”
The Executive Secretary, Nigerian Shippers Council, Hassan Bello, said the commencement of cargo delivery by rail at the port would address the challenges faced by importers and exporters and guarantee the seamless movement of cargoes from the seaports in Lagos to Kaduna Inland Dry Port.
On efforts taken to attract investors to use the facility, Bello said, “We are in preliminary discussion with the Commonwealth Enterprise and Investment Council in London and we want to bring them to Kaduna so that they will know what value they can add to the dry port.
“We are talking with the Nigerian Railway Corporation to create more space for associated industries, for it is an industrial hub where things are also processed. We don’t want to be exporting raw materials without having them processed. So, there is also a need to improve on our packaging.”
Bello also noted that the dry port might become a free trade zone, as the council had been engaging with all relevant authorities to achieve the target.
He said, “About 24,000 direct jobs will be created from this project. If we are able to connect the Niger Republic and Chad to use the port as the destination port for their cargoes, it will have a multiplier effect for Kaduna and its environs.
“We can then be able to decongest the ports in Apapa and Tincan Island and we won’t be having the gridlock we are experiencing now. It will take two days for the train to arrive from Lagos to Kaduna because we are using the old track, but we are improving and the movement must improve.”
According to Bello, the rail cargo delivery service currently has about 24 wagons and will bring in about 24 containers on each trip, and this will cut down cargo delivery cost by about 50 per cent.
Crude Oil Rises to $43.68 on Monday Despite Concerns Over Rising COVID-19 Cases
Oil Rises to $43.68 Despite Concerns Over Rising COVID-19 Cases
Oil prices rose on Monday during the London trading session to $43.68 per barrel despite growing concerns over the rising number of new COVID-19 cases.
The Brent Crude oil, against which Nigerian crude oil is measured, rose as high as $43.68 per barrel before slightly pulling back to $43.24 per barrel as at 1:25 pm Nigerian time.
Despite the rising number of COVID-19 new cases in the US and the rest of the world, Brent crude oil has been able to sustain the recent upsurge on the back of OPEC and allies 9.7 million per day production cut agreement and the reported improvement in compliance level.
However, experts have said if the number of confirmed COVID-19 cases continues to increase that demand for the commodity will decline as people and businesses would be forced to shut down operations and stay at home.
“There will be some kind of decline in demand if cases were to increase as people will stay at home,” said Howie Lee, an economist at Singapore’s OCBC Bank. “The pace of U.S. demand recovery will not be as steep as expected.”
Analysts at ING bank said in a note that the report of the Energy Information Administration due later this week will highlight the impact of the new restriction due to the second wave of COVID-19 on gasoline demand.
“We will get a better idea of what impact tighter restrictions in several states have had on gasoline demand with the EIA (Energy Information Administration) report this week.”
Citigroup Sees $60 Per Barrel Crude Oil in the Next 12 Months
Citigroup Says Crude Oil Will Reach $60 Per Barrel in a year
Despite the current economic downturn and the projected second phase of COVID-19, Citigroup, a New-York based financial service company, has said oil price could hit $60 per barrel in the next 12 months.
Citigroup disclosed this on Thursday during a virtual EMEA Media Summit titled – ‘Navigating the Future: What’s Next in a Post-COVID-19 World’.
“After a substantial underperformance in the last six months relative to several other commodities, crude will eventually bounce back to around $60 per barrel over the next 12 months,” Max Layton, European Head of Commodities Strategy, Citigroup said while giving a presentation on the outlook for commodities in the second half of 2020, and into 2021.
This means Brent crude oil would rise by at least 50 percent from the current level of $42 per barrel in the next 12 months.
“It’s going to be a function of the demand and supply but recently we have been seeing a spike in the demand for some of the commodities,” said Atiq Rehman, Head of EMEA Emerging Markets, Citigroup.
“A lot of these economies are heavily commodity-dependent, and perhaps, in the past have been guilty of not diversifying when they come under pressure. I think perhaps, this recent moves will push them to diversify away from simply commodities,” Grant Carson, Head of TRUK And Non-Presence Countries, Citigroup, stated citing Russian as one of the countries that have recorded success in diversifying away from crude oil.
Oil Sustains $42 Price Level as OPEC Output Drops to Over Two-Decade Low
OPEC Oil Output Drops to Over Two-Decade Low in June
Crude oil sustained $42 per barrel price level following a recent survey conducted by Reuters that showed the Organisation for the Petroleum Exporting Countries (OPEC) managed to cut oil production to over two-decade low in the month of June.
According to the survey, OPEC’s 13 members pumped 22.62 million barrels per day in June, 1.92 million barrels per day below May’s revised figure. The lowest since May 1991.
OPEC and allies, together referred to as OPEC plus, had agreed to cut oil production by 9.7 million barrels per day in the month of April to rebalance the global oil market and prop up prices amid COVID-19 pandemic.
OPEC’s share of the 9.7 million barrels per day production cut was 6.084 million bpd but OPEC delivered 6.523 million bpd cut in the month of June despite the inconsistencies from Nigeria, Angola and Iraq.
In June, Saudi Arabia reduced production by 1.13 million barrels per day to 7.53 million bpd. While Kuwait and the United Arab Emirates met their quota but struggle to fulfill the extra cuts.
Nigeria, Iraq and Angola continue to struggle in the month of June. However, their performance improved compared to May as Nigeria attained 77 percent compliance level, up from 19 percent in May.
While Iraq and Angola achieved 70 percent and 80 percent compliance level, respectively. Nigeria and Iraq have pledged to cut more in July despite their economic challenges. Angola, however, said it would not be able to cut extra oil production until October.
Brent crude oil, against which Nigerian oil is measured, rose to $42.48 per barrel on Friday as at 2:58 pm Nigerian time.
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