Amidst weakening global demand for crude and uncertainty over the commitment among OPEC+ producers to extend production cuts, the International Energy Agency (IEA) in its latest forecast, expects Brent oil price to average US$33 this year.
While this may come as good news to cheer for Nigeria considering the revised benchmark of the 2020 budget at US$30, we think the gains may be capped by the possibility of further production cuts that the nation may have to sacrifice as part of its pledge to OPEC+ in stabilizing the global oil market.
Notably, the latest forecast of IEA comes at a crucial time when OPEC and a group of other leading oil producers are scheduled to meet tomorrow to deliberate on further production cuts in addition to the current 2.1mbpd.
Furthermore, IEA expects global oil demand to fall in 2020, the first full-year contraction in more than a decade, on the back of shrinking demand from China, which accounted for more than 80% of global oil demand growth in 2019.
In addition, jet fuel demand remains hampered by the shutdown of airline operations following travel restrictions implemented by several countries across the globe. On the bright side, the agency projects that the U.S. will return to being a net importer of crude oil and petroleum products in the third quarter of 2020, raising prospects of a medium-term stronger recovery in the oil market.
Interestingly, the Energy Department disclosed that the U.S. would join in a discussion of energy ministers from the Group of 20 industrialized nations on Friday this week, just a day after the OPEC + meeting. In our view, this reinforces the commitment of the US in preventing a collapse of the oil market, as President Trump has also been trying to act as a middle man in ending the ongoing price war between the Saudis and Russians in an attempt to support shale producers.
In our view, we expect oil prices to likely receive a boost from the prospects of deeper production cuts at OPEC+ meeting, however, we do not think the production cuts will be sufficient in offsetting the widening gap in global demand for oil. Hence, we expect the gains to be short-lived until global economic activities return to normal.
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FG explains how the Covid-19 vaccines work and their composition
The NPHCDA Director said that Covid-19 vaccine candidates are of various categories based on their mechanism of action.
The Federal Government through the National Primary Health Care Development Agency (NPHCDA) has explained the composition of the Covid-19 vaccines and how they work.
This is as some of them have been approved for emergency use by the World Health Organization (WHO) and some countries, while others are still at different phases of clinical trials for possible approval.
According to a report from the News Agency of Nigeria (NAN), this insight was given by the Executive Director/Chief Executive of NPHCDA, Dr Faisal Shuaib, who said there were several COVID-19 vaccine candidates.
He said that Covid-19 vaccine candidates are of various categories based on their mechanism of action such as the inactivated or weakened virus vaccines.
He explained that the idea behind the formulation of an inactivated or weakened virus vaccine is to elicit an immune response without causing the disease itself. Shuaib also said there were protein-based vaccines, which used harmless fragments of proteins or protein shells that mimic the Covid-19 virus to safely generate an immune response.
He added that the viral vector vaccines used a virus that had been genetically engineered to produce coronavirus proteins to safely generate an immune response and not give rise to the disease.
Going further, Shuaib pointed out that the Ribonucleic Acid (RNA) and Deoxyribonucleic Acid (DNA) vaccines employed a cutting-edge approach that used genetically engineered RNA or DNA to generate a protein that safely prompted an immune response.
What you should know
- It can be recalled that on March 2, 2021, Nigeria received the first set of about 4 million doses of the AstraZeneca Covid-19 vaccine, manufactured by the Serum Institute in India and shipped via the COVAX Facility, a partnership between CEPI, Gavi, UNICEF and WHO.
- A few days ago, the Executive Director of NPHCDA disclosed that a total of 8,491 Nigerians have reacted adversely to the AstraZeneca inoculation since the exercise began on March 15.
- He said that Nigeria recorded 52 cases of moderate to severe incidents of Adverse Effects Following Immunisation (AEFI), presented as fever, vomiting, diarrhoea headaches, dizziness and allergic reactions.
- About 1.09 million Nigerians have so far been administered the first dose of the AstraZeneca Covid-19 vaccine.
Elon Musk loses an estimated $6bn after a Tesla car accident killed two people
Elon Musk’s net worth dipped by $6 billion following a tragic Tesla car accident that killed two people.
The second richest man in the world, Elon Musk, witnessed his wealth shed an estimated $6bn after a Tesla car was involved in an accident that led to the death of two people.
Tesla stocks dropped by 3.8% after the news of the crash went mainstream. The resultant effect on Elon Musk’s wealth was a $5.71bn loss in a single day.
Two men lost their lives on Saturday night in Houston when their 2019 Tesla model car slammed into a tree. Police authorities on sight claimed the car might have been on autopilot due to the sitting position of the corpses.
They also struggled to put out the fire from the Tesla car and even called Tesla for help. The death of the two men has sparked a heated argument between Tesla and its critics. Autopilot or not?
Although police officers’ assertion that the car may have been on autopilot remains unconfirmed, it has raised serious uncertainty about the safety of Tesla’s autopilot feature and Tesla’s critics are not backing down on this.
Elon Musk reacts
Elon Musk has reacted to the news, insisting that the autopilot feature in the crashed vehicle was not enabled. According to him, the Wall Street Journal’s coverage of the accident was not professional.
What you should know
Elon Musk is now worth $183bn following the recent drop. He closed the gap on Amazon’s Jeff Bezos to $4bn early last week. The gap has widened to $14bn today.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- 2020 FY Results: Unity Bank Plc posts profit after tax of N2.09 billion.
- Guinea Insurance Plc reports a loss of N142.13 million in 9M 2020.
- Unilever Nigeria Plc set to hold Annual General Meeting on 6th of May.
- UBA Plc posts profit after tax of N38.16 billion in Q1 2021.
- PZ Cussons Nigeria Plc appoints Ifueko Okauru as Independent Non-Executive Director.