Oil Price Rises To $56 Per Barrel

Oil markets were firm on Monday and remained near multi-month highs reached late last week as the number of U.S. rigs drilling for new production fell and refineries continued to start up after getting knocked out by Hurricane Harvey.

U.S. West Texas Intermediate (WTI) crude futures were at 50.0 dollars per barrel at 0547 GMT, and close to the more than three-month high of 50.50 dollars reached last Thursday.

Brent crude futures, benchmark for oil prices outside the United States, were at 55.71 dollars a barrel, up 9 cents and not far from the almost five- month high of 55.99 dollars touched on Thursday. Brent was 56 dollars on Wednesday.

“Demand forecasts from OPEC and IEA… continued to improve sentiment in the market. Refineries are also reporting a much better recovery from the recent hurricanes,” ANZ bank said on Monday.

Royal Dutch Shell’s Deer Park refinery in Texas was among the latest, beginning its restart on Sunday. The plant can process 325,700 barrels per day.

The refinery restarts are occurring “as signs emerge of stalling growth in the U.S. shale industry. The number of rigs drilling for oil in the U.S. fell sharply last week,” ANZ said.

U.S. energy firms cut seven oil rigs in the week to Sept. 15, bringing the total count down to 749, the fewest since June, energy services company Baker Hughes said on Friday.(Reuters/NAN)

By Daily Post Staff

Naira Depreciates Against The Dollar

The naira on Monday depreciated against the dollar in the parallel market.

The Nigerian currency depreciated against the dollar by N2 in the parallel market.

The exchange rate for the market rose to N367 per dollar at the close of business, yesterday, from N365 per dollar, last week.

Meanwhile, the Central Bank of Nigeria (CBN), yesterday further intervened in the forex market with $250 million.

A breakdown of Monday’s intervention indicates that the wholesale sector was offered the sum of $100 million.

Small and Medium Enterprises (SMEs) window received a boost of $80 million.

Those requiring foreign exchange to address needs such as Business/Personal Travel Allowances, school tuition, medicals, etc. were allotted the total sum of $70 million.

The Bank’s Acting Director in charge of Corporate Communications, Isaac Okorafor reiterated that the interventions had ensured stability in the market.

He stressed that the CBN remained committed to maintaining transparency in the market and urged all to adhere to the extant guidelines on the sale of forex.

 By Wale Odunsi

Naira Strengthens Against The Dollar

The Naira on Tuesday appreciated against the dollar at the parallel market.

The Nigerian currency gained N1 to exchange at N364 to the dollar, stronger than N365 posted on Friday, while the Pound Sterling and the Euro closed at N470 and N430.

Trading at the Bureau De Change window saw the Naira closing at N362 to the dollar, while the Pound Sterling and the Euro traded at N470 and N430.

At the investors’ window, the Naira was sold at N360.39 to the dollar, while it exchanged at N305.8 to the dollar at the interbank market.

Just before the Sallah break, the CBN injected $297 million into the Retail Secondary Market Intervention Sales (SMIS) segment of the foreign exchange market, raising the total intervention for last week to the sum of $547 million.

Acting Director for Corporate Communications Department, Isaac Okorafor, disclosed that CBN was resolute in its determination to intervene in the forex market with the aim of uplifting the naira exchange rate, boosting liquidity in the forex market, and ensuring timely execution and settlement for eligible transactions.

He also expressed confidence that the interventions will continue to guarantee stability in the market and ensure availability to individuals and business concerns with genuine demand for forex transactions.

By Wale Odunsi

Nigeria Finally Wobbles Out Of Recession

Nigeria’s economy in recession seems to have come to with a tiny breath of life at a wobbly growth rate of 0.55% recorded in the Second Quarter of 2017.

The single and isolated sector that drove the marginal growth was essentially oil that had a leap of 1.64% over the previous quarter.

Overall,  the GDP grew by some 2.04% abovr the Second Quarter of 2016,  which is a great leap and attributable to the stabilization achieved in oil exploration in the Niger Delta that was quite volatile almost the entire 2016.

The major drvers cummulativrly were oil and gas,  agriculture,  electricity and the industrial sector.

Electricity and Gas jumped like a rocket by 35.5% maybe from the combined higher electricity tariff and lower gas prices,  especially the domestic gas that seems to have encouraged higher consumption. 

 Also,  Nigeria’s electricity that is almost wholly hydro always experiences positive economy during the rains and this might have given some notches higher in power generation and distribution.

However,  trade generally had a negative growth of 1.62%, and agriculture upping by 3.1% and the non-oil sector all together went up by 0.45%.

On the balance,  with the total growth of 0.55%, it implies the oil sector contributed 0.10% of the drive up,  a sign of the likelihood that it’s the expansion and development of the non-oil sector rather dependence on oil that would power Nigeria economy eventually.

SUN