- OPEC Calls for Adherence to Oil Output Deal
The Organisation of Petroleum Exporting Countries (OPEC) has called on its member countries as well as non-OPEC countries led by the Russian Federation to conform fully to the oil production curb agreement they reached to rebalance the global oil market.
OPEC said conformity to the output cut deal it reached under the Declaration of Cooperation (DoC) with non-members was 168 per cent in April 2019, adding that average conformity reached 120 per cent since January 2019.
However, Saudi Arabia’s Minister of Energy, Industry, and Petroleum Resources, Khalid Al-Falih, said at the recently held 14th Joint Ministerial Monitoring Committee (JMMC) meeting of the group in Jeddah, that it was important for all signatories to the deal to fully conform.
Al-Falih added: “Our shared goal of market stability, which clearly benefits everyone including consumers, has made the Declaration of Cooperation credible, responsive, and highly effective.
“I would, however, sound a note of caution. We can’t allow our collective success to mask individual under-performance.
“Conformity should never be presumed and must be evenly distributed. My hope is that the vigorous participation of select countries, and its visible results, have shown the full potential of OPEC+ if everyone plays a full role. Cohesion and its practical demonstration are the true keys to success, be it conformity or more broadly acting in unison,” said Al-Falih.
The Saudi minister also hinted that OPEC and its allies would not be hasty in taking decisions about the DoC in their upcoming meeting. He said developments in the market were foggy and needed to be studies patiently.
“Putting this all together, while we want to make decisions and not shy away from them, it is critical that we don’t make hasty decisions – given the conflicting data, the complexity involved, and the evolving situation.
“That’s the reason we postponed the April OPEC+ meeting planned for Vienna to June and added this meeting so we could acquire some additional information.
“Taking a little more time and deciding at the June OPEC meeting will allow us to secure even more information to arrive at the best possible decisions. Again, keeping inventories under control will be on our critical path,” he explained.
According to him, OPEC and its allies would, “always done the right thing in the interests of both consumers and producers; and we will do it once again.”
Speaking further on the current situation of the market, Al-Falih stated: “To be frank, the picture is quite foggy, with the market defined by conflicting signals.
“Starting with the global economy, although multilateral institutions have moderated their forecasts of world growth, the levels are still reasonably healthy with the U.S. leading a steady performance while the Chinese economy started the year fairly strongly. But the growing trade dispute between the same two leading global economic powers is casting a shadow over the global economic outlook. This could also have a contagion effect on other nations, which could show in weakening oil demand.”
“Looking at the oil supply side of the equation, some signals point to tightening supplies, while others highlight the healthy pace of U.S. oil production.
“Similarly, on the demand side, there are numerous uncertainties. Some institutions are revising oil demand downward, yet other reports suggest that demand in non-OECD countries (led by China, Russian, and India) alone approached a million barrels per day year-on-year,” he added.
Livestock Feeds Appoints Adegboyega Adedeji as Substantive Managing Director
Adegboyega Adedeji is the Substantive Managing Director
Livestock Feeds Plc on Monday announced it has appointed Mr. Adegboyega Adedeji as the company’s substantive Managing Director, effective from 2nd October 2020.
In a statement released on the Nigerian Stock Exchange (NSE), the company said Mr. Adedeji was the Acting Managing Director of the Company before he was appointed as the Managing Director.
It added that Mr. Adedeji was “formerly the General Manager, Sales and Operations responsible for all sales activities and the strategic development of the Company’s markets, along with new products portfolio generation and development.”
He graduated from the famous Obafemi Awolowo University, Ile-Ife in 1996 and had his MBA from the University of Roehampton, UK in 2018.
He worked with Grand Cereals Limited as Regional Sales Manager before becoming their procurement manager. He moved to UACN Plc in 2007 as the Training Services Manager, a position held till September 2009 before he was transferred to UAC Restaurant.
COVID-19 to Plunge Global Consumer Spending by 8.6 % in 2020
Global Consumer Spending to Drop by 8.6 Percent in 2020
The coronavirus pandemic has changed almost every aspect of people’s daily lives, and consumer spending is no exception. The uncertainty of the COVID-19 crisis caused considerable changes in consumer habits, forcing them to cut down their budgets and prioritize spending.
According to data presented by Stock Apps, the coronavirus outbreak is expected to cut global consumer spending to $44.3trn in 2020, an 8.6% plunge year-over-year.
$4.2trn Drop in Spending Amid COVID-19 Crisis
Falling consumer spending has significant effects on overall Gross domestic product (GDP) growth, considering it accounts for almost 70% of GDP.
Before the COVID-19 crisis, global consumer spending has witnessed steady growth for five years in a row, revealed Statista, IMF, United Nations, World Bank, and Eurostat data. In 2015, it amounted to over $41.5trn. Over the next twelve months, this figure rose to $42.5trn and continued growing. Statistics show that in 2019, consumers worldwide spent a total of $48.5trn, the highest amount in a decade.
However, the coronavirus crisis triggered a sharp fall in 2020, with global consumer spending expected to plunge by $4.2trn year-over-year. Nevertheless, statistics show the following years are set to witness a recovery, with consumer spending growing by 20% to $53.5bn in 2022.
Statista data also revealed that Switzerland represents the leading country globally, with over $40,000 in consumer spending per capita in 2020. Luxembourg ranked second with around $5,000 less than that. Iceland, Denmark, and Norway follow, with $34,300, $25,800, and $25,600, respectively.
60% of Consumers Changed their Shopping Behaviour
The McKinsey&Company survey showed consumers became increasingly cautious with their spending in 2020. Even after countries lifted lockdowns, many consumers still see their incomes fall, forcing them to reduce budgets and change shopping habits.
Statistics show that increased time spent indoors led to significant growth in consumer spending on groceries, household, and home entertainment. Brazil, South Africa, and India lead in this category, with up to 30% consumer spending growth. Major consumer markets like the United States, United Kingdom, Germany, and China witnessed around 15% grocery shopping growth in the first half of the year.
However, with consumers being mindful of their spending and turning to less expensive products, 2020 has witnessed a plunge in clothes and accessories, outside entertainment, services, travel, and transportation spending. Respondents in all countries said they cut down spending in these categories between 20% and 50%.
The McKinsey survey also revealed the COVID-19 outbreak triggered a significant change in the shopping mindset. More than 60% of consumers globally have tried a different brand or shopped at another retailer during the crisis, mostly for convenience, value, and quality.
In China and the United States, over 75% of consumers reported trying a new shopping method, and 60% plan to stick with it post-crisis. The United Kingdom and Germany follow with 71% and 54% of consumers who practiced new shopping behavior. In Japan, where lockdowns weren’t imposed, only 33% of consumers changed their shopping mindset.
Survival Fund: Buhari Commences Disbursement of N75 Billion Support Fund
FG to Commence Disbursement of N75 Billion Survival Fund to MSMEs
The Federal Government to commence the disbursement of N75 billion COVID-19 support fund to successful Micro, Small and Medium Enterprises (MSMEs) that applied for financial support under the National MSME Survival Fund this week.
On September 10, 2020, the Federal Government announced the introduction of two financial support schemes to support around 1.7 million small businesses with N75 billion.
According to Tola Adekunle, the Special Assistant to the President on MSMEs, Office of the Vice President, who doubles as Project Coordinator, Survival Funds Scheme, payment disbursement to some of the beneficiaries of the schemes would commence this week.
He said, “Presently we are doing it in batches of 12 states to be able to monitor the scheme and as we speak now 12 states are ready. We are hoping that by the end of this week, we will be able to pay 12 states.
“We are starting with the artisans and it is 4,500 persons per state, plus 4,500 for transporters, bringing it to about 9,000 for each state. Right now, we have about 54,000 from 12 states.”
Asked by journalists when those on payroll support would start receiving payments, he said “By the end of this month.
“We want to ensure that the staff start getting their salaries and same for the second and third month.”
Adekunle explained that payroll support which was introduced under the survival fund to help businesses that employed between 10 to 50 people, will ensure 10 of the 50 employees are paid between N30,000 to N50,000 depending on their salaries. Payment, he said would commence by the ending of this month.
He said, “We now pay 10 of those people from among the 50 employees and we pay them between N30,000 and N50,000.
“But the minimum we pay is three staffs for three months to support their businesses and to ensure that we are helping businesses to augment their salaries.”
He, however, said the program ended on October 15 but states that were yet to meet their quotas were demanding extension. A demand he said was valid given that only less than 20 states have met their quotas.
“In my own opinion, it is valid but the decision lies in the hands of the committee and the project coordinator so I have to convince them based on data analysis,” he said.
Speaking on the total number of applicants for the payroll support, Adekunle said, “As at the day it closed, we had about 432,000 businesses that had applied. However, we have shortlisted less than 70,000 businesses that qualify and meet the requirements.”
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