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US Crude Stocks Rise by 1.3 Million Barrels

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Crude Stockpiles

Oil prices held gains after the U.S. Energy Information Administration reported a surprise build in crude stockpiles.

U.S. commercial crude inventories rose by 1.3 million barrels in the previous week to a total of 541.3 million barrels, EIA reported.

Crude inventories in the week to May 13 fell by 1.1 million barrels to 541.9 million while analysts had expected a fall of 2.8 million barrels, American Petroleum Institute (APP) data showed on Tuesday.

International Brent crude futures were trading 19 cents above their last settlement at $49.47 a barrel at 10:36 a.m. ET (1436 GMT). The contract hit a 2016 high of $49.75 in intra-day trade the previous day.

U.S. West Texas Intermediate crude futures were 28 cents higher at $48.59 a barrel, off a 2016 high of $48.76 per barrel struck on Tuesday.

Brent crude prices had seesawed on Wednesday as the impact of unplanned supply disruptions from Nigeria and Canada were tempered by rising supplies from elsewhere.

“The impact of the supply disruptions is clearly bigger than most analysts had expected,” ABN Amro chief energy economist Hans van Cleef said.

Unscheduled supply outages in Nigeria and Canada amounting to around 2 million barrels per day (bpd) have supported oil prices in recent weeks.

Unknown attackers have blown up a gas pipeline belonging to Italy’s ENI in Nigeria’s restive Niger Delta, residents said on Wednesday. The attack occurred in Bayelsa state, they said.

The incident follows earlier attacks on a Chevron offshore platform and a Royal Dutch Shell pipeline claimed by a new group of militants called the Niger Delta Avengers. This week, Nigeria’s oil minister said sabotage had reduced the country’s output by 800,000 bpd to 1.4 million bpd.

“Both fundamentals and technicals are lined up for a move through the $50 hurdle,” oil brokerage PVM said in a note on Wednesday.

But analysts warned that rising supplies from other countries could weigh on prices once supply disruptions ease.

“There is … plenty of supply upside elsewhere, particularly in Iran,” Vienna-based JBC Energy said in a note on Wednesday.

Data from Iran shows oil exports from the country are recovering faster than analysts had expected.

Exports from the OPEC member country are set to surge in May to 2.1 million bpd, nearly 60 percent above their level a year ago, with European shipments recovering to about half of their pre-sanction levels, according to a source with knowledge of the country’s crude lifting plans.

Saudi Arabia’s crude oil exports in March, however, fell slightly to 7.541 million bpd from 7.553 million in February, official data showed on Wednesday.

JBC also warned that a rise in oil prices towards $50 per barrel could reverse some production declines among high-cost producers, including shale drillers in the United States.

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.

Business

The Highest Corporation Taxes Around the World and the Main Drivers Behind them

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tax relief

Taxes Pay by Corporation Around the World and the Main Drivers Behind them

While corporation tax rates are influenced by the country’s definition, there’s clearly a pattern with developing countries and emerging economies paying higher rates to sustain the country.

The top five richest countries in the world’s corporation tax are relatively varied, with Luxemburg standing at 27.08%, Norway at 22%, Iceland at 20%, Switzerland at 18% and Ireland at 12.5%. It would appear that some countries’ cultures factor into how much tax they pay. For example, Scandinavian countries are proud to pay higher taxes to contribute to social welfare.

On average, Africa has the highest corporation tax rate throughout the world’s continents at 28.45% and South America, the second highest with an average rate of 27.63%. However, Europe stands at the lowest rate of 20.27%. Does this contradict the claim that developed countries pay higher tax?

OECD explained that corporation tax plays a key part in government revenue. This is particularly true in developing countries, despite the global trend of falling rates since the 1980s. Let’s take a closer look at two continents, South America and Africa, paying the highest corporation tax rates in the world.

South America has most countries in highest corporation tax top 10

According to data analysed, Brazil and Venezuela have the highest corporation tax at 34%, followed closely by Colombia at 33%, and Argentina at 30%, making South America the continent with the most countries in the top 10 who pay the highest corporation tax.

It is unclear whether South America, as an emerging continent, is charging higher taxes in order to raise government revenue or to benefit from businesses that are looking to expand internationally and enter new markets. According to research, South America is becoming a popular choice for business to enter, with strong trade links and an advantageous geographic location. Indeed, South America is a large continent where some countries are business friendly and others are harder to penetrate.

Africa: the continent with the highest average corporation tax

Being the poorest continent in the world, Africa unsurprisingly has the highest average corporation tax at 28.45%. With the highest in this data being Zambia at 35% and the lowest being Libya and Madagascar at 20%, South Africa stands roughly in the middle at 28%, slightly above average for Africa overall. Does this mean that South Africa is the safest bet for business?

South Africa is one of Africa’s largest economies, with 54 diverse countries in terms of political stability, development, growth, and population. As South Africa has been a relatively slow growth area over the years, corporation tax dropped from 34.55% in 2012 to the current rate — but was this effective? GDP in South Africa has fluctuated quite dramatically since the 1960s. Business favours countries with political stability, which is something South Africa doesn’t currently have. Furthermore, South Africa’s government debt to GDP sits roughly in the middle of the continent’s countries — is this influencing their corporate tax rate?

Country Continent Tax (%)
Puerto Rico North America 37.5
Zambia Africa 35
Brazil South America 34
Venezuela South America 34
France Europe 33.3
Columbia South America 33
Morocco Africa 31
Japan Asia Pacific 30.62
Mexico North America 30
Argentina South America 30
Germany Europe 30
Australia Asia Pacific 30
Philippines Asia Pacific 30
Kenya Africa 30
Nigeria Africa 30
Congo Africa 30
Belgium Europe 29
Pakistan Asia Pacific 29
Sri Lanka Asia Pacific 28
New Zealand Asia Pacific 28
South Africa Africa 28
Luxembourg Europe 27.08
Chile South America 27
Canada North America 26.5
Algeria Africa 26
India Asia Pacific 25.17
Jamaica North America 25
Chile South America 25
Ecuador South America 25
Netherlands Europe 25
Spain Europe 25
Austria Europe 25
South Korea Asia Pacific 25
Bangladesh Asia Pacific 25
China Asia Pacific 25
Indonesia Asia Pacific 25
Zimbabwe Africa 25
Tunisia Africa 25
Greece Europe 24
Italy Europe 24
Malaysia Asia Pacific 24
Israel Middle East 23
Egypt Africa 22.5
Norway Europe 22
Denmark Europe 22
Turkey Europe 22
Sweden Europe 21.4
United States North America 21
Portugal Europe 21
Russia Europe 20
Finland Europe 20
Iceland Europe 20
Afghanistan Asia Pacific 20
Azerbaijan Asia Pacific 20
Kazakhstan Asia Pacific 20
Thailand Asia Pacific 20
Vietnam Asia Pacific 20
Cambodia Asia Pacific 20
Taiwan Asia Pacific 20
Saudi Arabia Middle East 20
Jordan Middle East 20
Yemen Middle East 20
Madagascar Africa 20
Libya Africa 20
Slovenia Europe 19
Czech Republic Europe 19
Poland Europe 19
United Kingdom Europe 19
Belarus Europe 18
Croatia Europe 18
Switzerland Europe 18
Ukraine Europe 18
Singapore Asia Pacific 17
Hong Kong Asia Pacific 16.5
Lithuania Europe 15
Georgia Asia Pacific 15
Maldives Asia Pacific 15
Kuwait Middle East 15
Iraq Middle East 15
Ireland Europe 12.5
Cyprus Europe 12.5
Bulgaria Europe 10
Qatar Middle East 10
Hungary Europe 9
Barbados North America 5.5

 

Lucy Desai is a content writer at QuickBooks, a global company offering the world’s leading accountancy software.

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Economy

Nigeria’s Crude Oil Production Declined to 1.31mbpd in September

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Oil

Nigeria’s Crude Oil Output Declined from 1.37mbpd in August to 1.31mbpd in September

The Organisation of the Petroleum Exporting Countries (OPEC) reported that Nigeria’s crude oil production declined by 58,000 barrels per day in the Month of September when compared to the nation’s oil production of August.

In its latest oil market report, the cartel said Nigeria produced 1.37 million barrels per day in the month of August but that number declined by 58,000 to 1.31 million barrels per day in September. Bringing the total decline for the 30 days of september to 1.74 million barrels.

On oil price movement in September, the organisation said prices settled lower in the month under review after four consecutive months of gains.

OPEC Reference Basket declined by 8.1 percent or $3.65 in September to $41.54 per barrel, while it moderated to $40.62 per barrel from the year-to-date.

Commenting on the recent changed in Nigeria’s monetary policy rate, the oil cartel said “the recent cut is a part of the policy to continue supporting the economy that plunged 6.1 per cent in the second quarter hit by the global pandemic.

“Nevertheless, Nigeria’s annual inflation rate surged to the highest rate since March 2018 in August 2020, as it rose to 13.22 per cent year-on-year from 12.82 per in in July.

Oil prices sustained bullish trend on Thursday after data showed U.S oil inventories declined last week.

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Global Economy to Lose $28 Trillion in Five Years -IMF

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IMF Managing Director Kristalina Georgieva

International Monetary Fund Says Global Economy May Lose $28 Trillion in the Next Five Years to COVID-19

The International Monetary Fund (IMF) has said the world’s economy may lose as much as $28 trillion to COVID-19 in the next five years.

The Fund’s Managing Director, Kristalina Georgieva, disclosed this during her opening remarks at the annual general meeting conference held on Wednesday.

She said “The picture over the last few months has become less dire, yet we continue to project the worst global recession since the great depression.

“Growth is expected to fall to -4.4 per cent this year. And over the next five years, the crisis could cost an estimated $28tn in output losses.

“At the same time, we can see stars shining above us. We see unprecedented efforts in vaccine development and treatment.

“We see extraordinary and coordinated fiscal and monetary measures putting a floor under the world economy. And the world is starting to learn how to live with the virus.

“While there is tremendous uncertainty around our forecast, we project a partial and uneven recovery in 2021, with growth expected at 5.2 per cent.”

“As I said in my curtain raiser speech, all countries now face a “long ascent”—a journey that will be difficult, uneven, uncertain, and prone to setbacks.

“Think of how the virus is resurging in a number of countries.”

She also made recommendations, the managing director explained that an unusual crisis requires an unusual approach and solution.

Georgieva said, “In our Global Policy Agenda, which we are releasing today, we outline the measures we believe are needed to overcome the crisis and build a brighter future. Let me highlight three priorities:

“First—continue with essential measures to protect lives and livelihoods.

“A durable economic recovery is only possible if we beat the pandemic everywhere. Stepping up vital health measures is imperative.

“As is fiscal and monetary support to households and firms. These lifelines—such as credit guarantees and wage subsidies—are likely to remain critical for some time, to ensure economic and financial stability.

“Pull the plug too early, and you risk serious, self-inflicted harm.”

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