Crude oil prices soared higher on the first trading session of the week. This is as Iraq, a leading OPEC member, disclosed that it would reduce its oil production. More so, U.S. President Donald Trump has taken executive action on the provision of economic aid to Americans hit by the COVID-19 pandemic, thereby reigniting hopes among crude oil traders for a recovery in energy demand.

The West Texas Intermediate gained 1.26% to $41.71. Brent Crude was also up 0.95% to $44.82 at the time this report was drafted.

Iraq, the second-largest OPEC member (in terms of production capacity) disclosed that it would increase its production cuts to compensate for failing to comply with a deal earlier made in April 2020 to curb crude oil production.

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Insight: In an explanatory note to Nairametrics, Stephen Innes, the Chief Global Market Strategist at AxiCorp, spoke about the macros that crude oil is presently focused on. He said:

“Oil remains in a relatively tight trading range with upside capped by concerns about the pace of the post-COVID-19 macro recovery and rising OPEC+ and US supply.

“Oil markets traded softer into the weekend on the back of escalating US-China tensions. Although prices bounced favorably on the US employment data, they were unable to hold on to their gains given the geopolitical overhang.”

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Still, crude oil markets continue to test the upper bound of its recent trading range, supported by OPEC’s unwavering compliance commitment which was reaffirmed when Saudi Arabia and Iraq’s energy ministers made a joint statement saying that they were fully committed to the OPEC+ oil production agreement.

One of the 3 major shareholders of UAC Nigeria Plc (UACN), Blakeney LLP, has substantially reduced its stakes in the conglomerate with the sale of 80 million additional shares.

This was disclosed in a notification that was sent to the Nigerian Stock Exchange (NSE) by UAC Nigeria Plc. The notification was signed by the Company Secretary/Legal Adviser, Godwin Samuel.

Note that this is coming a few days after UAC Nigeria Plc announced a deal to divest 51% of its shares in UACN Petroleum Development Company (UPDC) to Custodian Investment Plc.

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An analysis of this current sales and reduction of its stake shows that Blakeney LLP reduced its shareholding in the conglomerate through a deal on August 5, at a price of N5.75 per share. A further breakdown of the transactions shows that the 80,000,000 units were sold at N5.75 amounting to N460 million in purchase consideration.

Back Story: It can be recalled that UACN had earlier sent notifications to the NSE announcing sales of 75 million shares by Blakeney between the months of April and June

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• In an earlier notification sent to the Nigerian Stock Exchange and other stakeholders in February 2019, UAC of Nigeria Plc announced the emergence of three major shareholders with more than 5% stake in the company. The three major shareholders include Themis Capital Management (8.08%), Stanbic IBTC Nominees Limited (7.27%), Blakeney GP 111 Ltd (7.55%).
• Nigeria’s oldest conglomerate has gone through some major restructuring in recent times following investments by these core investors and other major shareholders. In September 2019, UACN announced the outright dissolution of its interest and restructuring of UAC Property Development Company (UPDC) with the transfer of its interest directly to the shareholders.
• Over the years, UACN has transformed from a very large conglomerate with footprints in different sectors of the economy to a leaner organization with interest in Manufacturing, Food & Beverage, Logistics, Agro-allied Industry, Paints and Chemicals.
• Blakeney Management is one of the oldest and largest institutional investors in Africa and the Middle East. They are based in London and have been managing funds since 1995 for some of the largest institutions in the world.

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 46,577 confirmed cases.

On the 9th of August 2020, 437 new confirmed cases and 3 deaths were recorded in Nigeria, having carried out a total daily test of 2,864 samples across the country.

To date, 46,577 cases have been confirmed, 33,186 cases have been discharged and 945 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 317,496 tests have been carried out as of August 9th, 2020 compared to 314,632 tests a day earlier.

COVID-19 Case Updates- 9th August 2020,

• Total Number of Cases – 46,577
• Total Number Discharged – 33,186
• Total Deaths – 945
• Total Tests Carried out – 317,496

According to the NCDC, the 437 new cases were reported from 17 states- Lagos (107), FCT (91), Plateau (81), Kaduna (32), Ogun (30), Kwara (24), Ebonyi (19), Ekiti (17), Oyo (8), Borno (6), Edo (6), Kano (4), Nasarawa (3), Osun (3), Taraba (3), Gombe (2) and Bauchi (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 15,875, followed by Abuja (4,467), Oyo (2,868), Edo (2,382), Rivers (1,939), Kano (1,626), Kaduna (1,598), Delta (1,596), Plateau (1,502), Ogun (1,469), Ondo (1,284), Enugu (905), Ebonyi (870), Kwara (857), Katsina (746), Borno (688), Abia (644), Gombe (631),  Osun (628), and Bauchi (577).

Imo State has recorded 476 cases, Benue (409), Nasarawa (370), Bayelsa (346),  Jigawa (322), Akwa Ibom (235), Niger (226), Adamawa (185), Ekiti (178), Sokoto (154), Anambra (142),  Kebbi (90), Zamfara (77), Taraba (72), Cross River (68), Yobe (67), while Kogi state has recorded 5 cases only.

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Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

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