Business News
Why OPEC may not change output cut soon
Recently, there have been speculations and uncertainties as to whether OPEC+ will agree to change crude oil output cuts for member countries.
Recently, there have been speculations and uncertainties as to whether the Organisation of Petroleum Exporting Countries and its allies (OPEC+) will agree to change crude oil output cuts for member countries when they meet in Vienna between December 5th and 6th.
This uncertainty was reinforced by a statement made yesterday by Neil Atkinson, the Head of International Energy Agency’s oil industry and market division. Reuters quoted Atkinson as saying that OPEC+ members will most likely not change the current output cut, pending the time they have a better understanding of trends in the global oil market.
“OPEC is quite likely to do what it has often done in the past: put off taking a decision which involves changing the current system until things become clearer.
“The Russians, we understand from press reports, are keen at least on the political level not to change anything immediately.
“There’s a lot of uncertainties out there, not least the U.S. shale outlook, strength in demand, the overall economic outlook, all the rest of it, that more likely than not they will leave it in place and meet again in March.”
Neil Atkinson
[READ MORE: OPEC’s Strategy hangs in the balance]
Note that OPEC’s output cut for its members and allies currently stands at 1.2 million barrels per day. The oil cartel has maintained that cut virtually throughout the year, in a bid to ensure that oversupply in the market does not destabilise global oil prices.
Recall that Nairametrics earlier reported the International Energy Agency forecast that OPEC+ countries would face stiffer competition in 2020, no thanks to increased crude output from no OPEC+ countries such as Brazil, Norway, and the United States of America.
We pointed out that the projected competition would not be good for a country like Nigeria. This is because the country depends a lot on oil revenue to finance its budget. As such, it favours higher output and more dollars per barrel of crude.
In the meantime, it is yet to be seen how these possibilities play out. As a result, all concerned parties are looking up to OPEC and its allies to decide on Friday.
Business
Hyundai and Kia to set up an assembly plants in Ghana by 2022
The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.
Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.
Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.
Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development programme = 3,600 assembly & 6,600 manufacturing parts jobs in Ghana. #InvestforJobs pic.twitter.com/JMHAmlM5VI
— Alan John Kyerematen (@AlanKyerematen) April 22, 2021
READ: This is the New Tarrif Structure For Importing Tokunbo & Brand New Cars
“Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.
“The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”
READ: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast
Why this matters
More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.
Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.
Business
Passports: Backlog of undelievered passports to be fixed before May 31st – Minister
The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.
