- MPC Meeting’ll Hold After Senate Confirmation of Members – Emefiele
The Governor, Central Bank of Nigeria, Mr. Godwin Emefiele, on Thursday said the Monetary Policy Committee meeting would hold seven to 10 days after the confirmation of the members of the committee by the Senate.
Emefiele said this shortly after the inspection of the Sunti Sugar Factory owned by Flour Mills of Nigeria and partly funded by the CBN.
President Muhammadu Buhari had sent the names of two deputy governor-nominees and new members of the MPC to the Senate following the expiration of the tenure of some of the former members.
The nominees for the CBN deputy governors are Mrs. Aishah Ahmad and Mr. Edward Adamu.
The nominated members of the MPC are Prof. Adeola Adenikinju, Dr. Aliyu Sanusi, Dr. Robert Asogwa and Dr. Asheikh Maidugu.
The Senate had refused to screen the nominees following a resolution that no appointee of the executive would be cleared until the President removed Ibrahim Magu as the acting chairman of the Economic and Financial Crimes Commission.
The decision made the apex bank to postpone the January meeting of the MPC.
While the second meeting of the committee, which is supposed to hold on March 19 and 20 approaches, the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Rafiu Ibrahim, had pleaded with his colleagues to clear the MPC members and the two CBN deputy governors.
He had hinged his argument on the fact that the delay in clearing the members was affecting the economy in the way of foreign direct investment inflow.
His prayer was granted by the Senate President, Dr. Bukola Saraki, who directed that the process of screening the members should commence next week.
Speaking on the development, Emefiele said he was delighted that the Senate had decided to screen the nominees earlier sent to them by the President.
He stated, “We will have a few days’ delay. The MPC was supposed to hold on the 19th and 20th of March. What I suspect is that we will be holding our committee of governor’s meeting and we will decide.
“And I believe we will just have between seven and 10 days’ delay, and the MPC will hold.”
Oil Prices News: Oil Gains Following Drops in US Crude Inventories
Oil Prices Gain Following Drops in US Crude Inventories and OPEC High Compliance Level
Global oil prices extended their 2 percent gains on Thursday after data showed U.S crude oil inventories declined last week.
The price of Brent crude oil, against which Nigerian oil is measured, gained 0.2 percent or 7 cents to $43.39 a barrel as at 12:10 pm Nigerian time. While the U.S. West Texas Intermediate (WTI) crude appreciated by 8 cent or 0.2 percent to $41.12 barrels.
Oil prices extended their three days gain after the American Petroleum Institute said the U.S crude inventories declined by 5.4 million barrels in the week ended October 9.
The report released after the market closed on Wednesday revealed that distillate stockpiles, which include diesel and heating oil, declined by 3.9 million barrels. Those stated drawdowns almost double analysts’ projections for the week.
“Much of the fall is due to the effects of Hurricane Delta shuttering U.S. production in the Gulf of Mexico, and as such, will be a transitory effect,” said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.
“Therefore, I am not getting too excited that a turn of direction is upon markets, although both contracts are approaching important technical resistance regions.”
Also, the report that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, referred to as OPEC+ attained 102 percent compliance level with their oil production cuts agreements bolstered global oil outlook. Suggesting that demands for the commodity are likely not growing and could drag down prices in few weeks, especially when one factor in the reopening of Libya’s Sharara oil field, workers returning to operation in Norway and the Gulf of Mexico.
Oil Prices Gain on Tuesday Despite Expected Surge in Global Oil Supplies
Oil Prices Rise Despite Expected Surge in Global Oil Supplies
Oil prices gained on Tuesday despite Libya opening Sharara oil field for production, labour in Norway reaching an agreement with oil firms to return back to work and oil workers in the U.S returning to the Gulf of Mexico region after the Hurrican Delta.
Brent crude oil, against which Nigerian oil price is measured, gained 1.77 percent to $42.46 per barrel as at 11:15 am Nigerian time on Tuesday.
While the US West Texas Intermediate (WTI) crude oil gained 2 percent to close at $40.22 per barrel.
The improvement in prices was after oil prices plunged as much as 3 percent on Monday following a resolution reached by Libyan rebels and government to commence oil production at the nation’s largest oil field, Sharara Oil Field.
This coupled with labour agreement with oil firms in Norway was expected to boost global oil supplies and eventually weighed on prices and disrupt OPEC+ production cuts strategy.
However, prices surged after Nancy Pelosi said she would commence talks on $1.8 trillion stimulus package following President Trump’s return to the White House after he was rushed to hospital following a positive COVID-19 test.
Joe Biden Win Could Boost Oil Prices, Says Goldman Sachs
Oil Prices to Surge Once Joe Biden Wins -Goldman Sachs
Goldman Sachs, one of the world’s largest investment banks, has said Joe Biden win could boost global oil prices despite weak global economic outlook and COVID-19 negative impacts on the world’s growth.
The investment bank, however, remains bullish on both oil and gas prices regardless of the election outcome in November.
The bank sees oil and gas demand rising enough in 2021 to supersede election results but explained that Biden win could bolster prices by making production more expensive and more regulated for producers in the U.S.
In a note written by the bank’s commodities team on Sunday, it said “We do not expect the upcoming U.S. elections to derail our bullish forecasts for oil and gas prices, with a Blue Wave likely to be in fact a positive catalyst.”
“Headwinds to U.S. oil and gas production would rise further under a Joe Biden administration, even if the candidate has struck a centrist tone.”
Goldman Sachs explained that if incumbent, Trump, is re-elected with pro-oil and gas policies in place that “its impact would likely remain modest at best,” Goldman’s analysts wrote, “given the more powerful shift in investor focus to incorporate ESG metrics and the associated corporate capex re-allocation away from fossil fuels.”
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