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U.S returns to Nigerian Oil, imports N349 billion crude oil in three months

U.S returns to Nigerian Oil, imports N349 billion crude oil in three months

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Crude oil prices record gains after tropical storm hit Gulf of Mexico, The world's biggest oil hedge program underway, crude oil, Nigeria's Crude oil, Bonny light crude oil crashes as Nigeria runs into deeper revenue crisisBonny light crude oil crashes as Nigeria runs into deeper revenue crisis, Brent crude futures gained 0.92%, at $36.08 per barrel, while the U.S. West Texas Intermediate (WTI) crude futures also gained 0.54%, at $33.67 a barrel, Crude oil prices hit $40 per barrel as inventory build-up declines, EIA increases Brent price projection by $2.50 for 2020

Having consistently dropped Nigeria’s crude oil in recent quarters, the United States (U.S) has returned to become one of Nigeria’s top trading partners after importing crude oil valued at N349.5 billion in the second quarter of 2019 (Q2).

According to the foreign trade report released by the National Bureau of Statistics (NBS) for Q2 2019, the U.S returned to make Nigeria’s top 10 trading partners, ranking 4th on the list.

The Breakdown: While Nigeria is a major crude oil-exporting country, oil export to the U.S had dropped significantly. The U.S had continued to cut its crude oil import and this largely affected its share of Nigeria’s crude oil export to the country.

  • Over the years, India has claimed the top spot, to become Nigeria’s top crude oil importer. In Q2 2019 alone, India imported Nigeria’s crude oil to the tune of N724.1 billion.
  • Meanwhile, a quick look at the Energy Information Administration (EIA) shows that following the volume of crude oil exported to the U.S between April and June, Nigeria now ranks 6th biggest exporter of crude to the U.S.
  • According to the EIA report, Nigeria exported 243,000 barrels of oil per day to the U.S in May 2019, while the daily barrels rose to 251,000 barrels per day in June. This implies that Nigeria exported an average of 7.5 million barrels of crude oil on a monthly basis.

Major boost for Nigeria as U.S set to increase Oil imports from Africa

U.S Top oil exporters: According to the data obtained from the EIA by percent share of total oil imports in 2018, Canada was the U.S biggest oil-exporting country with 43% of total crude oil imported by the U.S.

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  • Following Canada on the chart is Saudi Arabia. Specifically, Saudi Arabia exported 9% of U.S total crude oil imports in 2018.
  • Other countries that made the top five countries include Mexico (7%), Venezuela (6%) and Iraq (5%).
  • Meanwhile, the latest EIA report shows that as of June 2019, Nigeria remained the 6th country with the largest crude oil export to the U.S.
  • Countries ahead of Nigeria include Canada, Saudi Arabia, Mexico, Iraq and Columbia.

[READ MORE: Nigeria imported 5.6 billion litres of Petrol in Q2 2019, up by 5%]

Saudi-Arabia’s 9% up for grabs? Despite exporting crude oil worth N349 billion in Q2 2019 to the U.S, the latest development in the crude oil market portends another opportunity for Nigeria to increase its share of oil export to the U.S.

  • Over the weekend, Saudi Arabia, the OPEC’s largest exporter of Crude Oil reported that one of its major oil facilities was hit by a drone attack.
  • The attack reportedly affected about 5 million barrels per day of crude oil production, about half of its output.
  • Following the recent attack on two oil facilities in Saudi Arabia, there are indications that oil prices could go as high as $100, as witnessed six years ago.
  • While reactions have trailed the Saudi attack, Nigeria may be one of the biggest gainers as the U.S may turn to Nigeria for more crude oil, which will translate to more billions for the country.

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Economy & Politics

Godwin Obaseki wins Edo State governorship election

Incumbent governor, Godwin Obaseki emerged winner in the Edo State gubernatorial election.

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Oil theft gulped $1.35 billion in first six months - Obaseki 

Independent National Electoral Commission(INEC) has declared Godwin Obaseki the winner of the Edo State gubernatorial election today.

Mr. Obaseki will return as the Governor of the state for a second term.

The results were declared by INEC on Sunday afternoon after the results were counted from all LGA’s on Saturday.

Obaseki had 307,955 votes, which was enough to be declared a clear winner over Ize-Iyamu’s 223,619 votes.

Obaseki took to his Twitter handle to thank the people of Edo State for their votes. He stated,

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“Words fail me in saluting our teeming supporters who displayed immense courage in the face of threats, intimidation and brutalization. The collective will of Edo people made it possible for us to triumph over godfatherism. Congratulations to all Edo people. This is our victory!”

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Tech News

TikTok’s owner seeks $60 billion valuation in US deal as Oracle, Walmart take stakes

Oracle and Walmart have rights to buy 12.5% and 7.5% respectively of a newly established TikTok Global.

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Tiktok world’s most valuable startup is worth more than $100 billion

TikTok’s parent company, ByteDance is seeking a valuation of $60 billion for its video-sharing app, as Oracle Corp and Walmart Inc take stakes in the technology firm’s US operations to address the security concerns of the Trump administration.

According to a report from Bloomberg, Oracle and Walmart have rights to buy 12.5% and 7.5% respectively of a newly established TikTok Global under an agreement that has gotten the approval of President Donald Trump.

The duo US firms would be paying a combined amount of $12 billion for their stakes if they reach an agreement with TikTok for the asking price of $60 billion.

READ: Oracle wins bid to acquire TikTok’s US operations after Microsoft offer was rejected

The final valuation had not been set as the parties worked out the equity and measures for data security.

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It was also stated that China is yet to approve the deal, although regulators are said to have expressed support for any transaction in which BtyeDance still maintains control of its valuable recommendation algorithms and other proprietary technology.

It would be recalled that President Donald Trump, had threatened to ban the ByteDance owned TikTok, over national security concerns, but which some analysts see as part of the row between US and China. This pressured ByteDance into the deal as they looked to avoid the ban by the US government.

READ: ByteDance, Tiktok’s parent company, now worth over $100 billion

The US officials had expressed concern that the personal data of as many as 100 million Americans that use the app were being passed on to the Chinese government.

ByteDance turned down the proposal of a full buyout from Microsoft Corp but rather agreed to Oracle’s offer in which the Chinese parent company will still maintain a majority stake in the technology firm.

Trump told reporters on Saturday, ‘’I approve the deal in concept. If they get it done, that’s great. If they don’t, that’s ok too.’’

READ: President Trump dumps plan to force foreign students to leave the US

Trump’s new stance appears to conflict with his earlier executive order for China’s ByteDance to divest from the video-sharing app’s operations in the United States.

ByteDance is in a race to avoid a ban on TikTok after the US Commerce Department said on Friday that it would block new downloads and updates to the app from Sunday.

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According to market researcher, CB Insights, ByteDance is the most valued private start-up in the world at $140 billion. Under the proposed deal, ByteDance may end up owning as much as 80% of TikTok Global, which include the app’s operations in the US and the rest of the world excluding China. Venture firms like Sequoia Capital and General Atlantic may also acquire equity in the new business.

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Business

Lagos to shut Ojota’s axis of main carriage way of Ikorodu road for 3 months

The Commissioner advised all motorists to utilize alternative routes suggested during the stipulated time.

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Lagos shuts Ketu-Mile 12 section of Ikorodu road, outlines alternative routes, Motorists to pay N1000 penalty at Lekki-Ikoyi Toll Plaza

The Lagos State Government has announced the shutdown of the entire length of the main carriageway of Ikorodu Road from Ojota interchange to Ojota Second Pedestrian Bridge from Monday, September 21, 2020, for a duration of 3 months.

This is development is part of the next phase ongoing rehabilitation work on Ikorodu Road which is set to commence from the Ojota Interchange to Ojota Second Pedestrian Bridge and the Service lane inbound Lagos.

READ: FG, Lagos State collaborate to address declining infrastructure in Festac Town

While making the disclosure, the Lagos State Commissioner for Transportation, Dr Frederick Oladeinde, advised all motorists to utilize alternative routes suggested during the stipulated time for the repairs following the closure of the entire length of the main carriageway for reconstruction work.

Oladeinde in his statement said, “Vehicles coming from Maryland will be diverted at Odoyalaro into the Service lane and the BRT Corridor to link back the main carriageway at Ketu bus stop and Demurin junction respectively.’’

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READ: Lagos allows cinemas, gyms, others to reopen

The commissioner gave an assurance that the Lagos State Traffic Management Authority (LASTMA) and other law enforcement agencies will be available to direct traffic for free vehicular movement during the entire period of construction work.

While soliciting for the cooperation and support of residents and motorists that ply the axis, the Commissioner stated that the project is aimed at finding a lasting solution to the ever-busy road as well as to achieve the present administration’s traffic management and transportation policy objectives.

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