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Business News

Oil at $26, as Saudi Arabia in no retreat no surrender oil battle with Russia

Oil prices slumped on Monday morning in Asia as the Coronavirus pandemic continued to hurt demand while the price war between Saudi Arabia and Russia remained unresolved.

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Crude oil in Nigeria, Oil producing states in Nigeria, Department of Petroleum Resources, DPR yet to recognise Anambra Enugu and Kogis States as oil producers, West Africa’s crude inventory is building up as demand slows due to Coronavirus, Oil at $26, as Saudi Arabia in no retreat no surrender oil battle with Russia, Crude oil prices fall to $30 as COVID-19 erases gains from oil production cuts, Crude oil prices surge higher as Brent crude hits almost $30 per barrel , Brent crude plunges 5%, world’s second largest economy skips economic growth target

Oil prices slumped on Monday morning in Asia as the Coronavirus pandemic continued to hurt demand while the price war between Saudi Arabia and Russia remained unresolved.

International Brent Oil fell 4.62% to $26.66 by 4.40 am Nigerian local time and U.S. Crude Oil fell 5.3% to $20.37.

Meanwhile, neither Saudi Arabia nor Russia showed any sign of backing down from increasing supply they wage amid an ongoing price war. A delegate told Bloomberg that OPEC nations, Saudi Arabia amongst them, are opposed convening an emergency panel on tanking prices.

Demand concerns are critical but well known, what really took the market down were the signals we got from Saudi Arabia and Russia that they intend to continue their current path.

[READ MORE: Nigeria pumps more Oil, joins the Oil market battle)

The demand shock from COVID-19 is just too big. The reality is global storages will fill up in a couple of months if nothing changes, and that will have all sorts of disruptive impacts on pricing lockdown to limit the spread of the virus.

Crude Oil price war threatens Nigeria's economic stability

Consequently, OPEC countries aren’t giving support to a request from the group’s president for emergency consultations over tanking prices.

Algeria, which holds the cartel’s rotating presidency, has urged the secretariat to convene a panel but the call has failed to gather the majority backing necessary to go ahead. Riyadh is among those opposing the idea.

The world normally uses 100 million barrels of oil daily, but forecasters predict as much as a quarter of that has disappeared in just a few weeks. The plunge in consumption is without precedent since a steady flow of oil became essential to the global economy more than a century ago. The great crash of 1929, the twin oil shocks of the 1970s and the global financial crisis don’t come close.

[READ ALSO: Brent Crude Oil hits $26, as Nigeria’s Sweet Crude demand falls)

Global oil demand is in free fall and consumption may decline by as much as 20 million barrels a day, according to the International Energy Administration. That is forcing producers worldwide to slash output, while independent trader Trafigura Group expects as much as 1 billion barrels to be sent into storage tanks in the coming months.

The coronavirus pandemic, which has killed about 32,000 people and sickened more than 660,000 worldwide, has brought the worldwide aviation industry that uses a lot of crude to a standstill and put roughly 3 billion people on lockdown to limit the spread of the virus.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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Spotlight Stories

Tip Jar, Twitter’s new giveaway feature that lets users send money to you

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

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US Elections: Twitter, Facebook suspend several news accounts

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

According to the blog post, “Tip Jar is an easy way to support the incredible voices that make up the conversation on Twitter. This is a first step in our work to create new ways for people to receive and show support on Twitter – with money.”

The new feature utilizes different payment platforms like PayPal, Venmo, Patreon, CashApp, and others.

Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.

READ: Facebook is creating an audio chat product similar to Clubhouse

You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.

Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.

The company also launched Twitter crop where images don’t get crop again on Twitter for Android or iOS. Standard aspect ratio images (16:9 and 4:3) will now display in full without any cropping and images will look just like they did when you shot them.

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READ: Does YouTube stand a chance against TikTok?

Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”

Twitter has tested several features and more will be rolled out soon.

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Business

Customs Apapa Command generates revenue of N65.4 billion in April

This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

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Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

What Ibrahim Yusuf is saying

“This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

In line with the provision of extant laws, trade guidelines, and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

READ: Customs revenue rises by N200 billion to hit N1.5 trillion in 2020

This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

What you should know

Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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