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Business News

US headline crude oil crashes further, below $0 in an unprecedented outcome

US crude oil futures turned negative as it crashed below zero dollars for the first time in history on Monday, April 20, 2020.

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Oil price hits 21-year low as demand and storage crisis persists, Crude oil prices drop as investors assess demand recovery amid supply glut

The oil storage space has become a major global challenge as the US crude oil futures turned negative when it crashed below zero dollars for the first time in history on Monday, April 20, 2020.

The weak economic data from Germany and Japan have cast doubt on when the demand for crude will rebound. The lockdown in most of the economies around the globe has continued to have a negative impact on demand.

Meanwhile, Nairamterics had reported earlier when the US crude oil futures fell below $1 per barrel for the first time ever as demand for crude dried up. The U.S. crude futures for May delivery, the near-term contract, fell to their lowest level of more than 136% to negative $6.72 a barrel as traders fretted over the capacity of storage facilities both in the U.S. and abroad. Contracts for June delivery declined 12% to about $22 a barrel.

READ ALSO: International Energy Agency’s ‘Black April’ forecast torpedoes Nigeria’s 2020 budget

The global supply glut has persisted as the physical demand for crude oil has dried up and billions of people due to the lockdown stay at home as a precautionary measure to contain the spread of the coronavirus pandemic.

According to Reuters, the May US WTI contract dropped by $19.06 or 104.3%, to a discount of 79 cents a barrel as at 2.09 pm today (1.809 GMT) after it had hit an all-time low of -$1.43 a barrel. Brent crude went down by $1.85 to sell at $26.23 a barrel.

READ MORE: FG makes U-turn, to sell stake in oil assets

This means that oil traders were willing to pay to get the crude oil off their hands ahead of the expiry of the contract for delivery in May

Sigma Pensions

The investors were bailed out of the May contract ahead of the expiry date on Monday due to very low demand for the actual oil.

However, the outlook appears more promising as the June WTI contract is trading more actively at a much higher level at $21.6 per barrel which will be more than $23 difference when compared to what it was for May.

READ MORE: Nigeria’s cocoa exports to fall by $100m as prices rise in futures market.

The low oil demand and unsold cargo has become a major problem for Nigeria. It was reported a few days ago that the Nigeria Bonny light crude sold for as low as $12 per barrel, as the country had to sell at a discount due to millions of barrels of unsold crude.

Stanbic 728 x 90

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Business

Lagos State seeks investors in aquatic and livestock agriculture value chain

The Commissioner revealed that the scheme was in line with the State’s five-year strategic agriculture roadmap.

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Lagos State begins recruitment for Agripreneurship programme, Sanwo-Olu confirms Abisola Olusanya as new Agriculture commissioner

The Lagos State Government announced it is seeking private sector collaboration for Agriculture sector value chain development in livestock feed mills, fisheries and red meat.

This was disclosed by the State Commissioner for Agriculture, Ms Abisola Olusanya, in a statement on Sunday in Lagos.

The Commissioner revealed that the scheme was in line with the State’s five-year strategic agriculture roadmap, as the State identified the 3 main sectors for value chain disruption.

She also added that investment in the sectors would also develop jobs for the industry and boost the State’s GDP growth, through Private Sector collaboration as Lagos residents consume over N5 trillion worth of food annually.

“The objective is to stimulate and encourage more public-private partnerships in the three value chains,” she said.

“When you consider this pool of transactions happening in Lagos, it shows that we are the market. For instance, we demand over 400,000 metric tons of fish on an annual basis.

“But our fishermen and our aquaculture farmers are only able to produce just about 174,000 metric tons with deficit of 200,000 metric tons,” she added.

She also disclosed that the state has 9,000 artisanal fishermen, and bringing more youths into the space will increase the level of fish and seafood being harnessed from our water bodies. Looking at the transactional value on an annual basis, the fisheries sector is worth well over N120billion according to her.

Sigma Pensions

In case you missed it: Nigeria exported agricultural products worth N321.5 billion in 2020, representing a 19.16% increase when compared to N269.8 billion recorded in 2019 and a 6.27% increase compared to N302.28 billion recorded in 2018.

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Business

#DigitalSkillsTraining: FG announces conclusion of selection process

Only successful applicants that are contacted by the Ministry are to report at the training venue.

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President Buhari to address Nigerians on Lekki toll plaza shootings after investigation , Youth Investment Fund:  Ministry of Finance and CBN to launch provision of funds- Minister, Federal Ministry of Youth and Sports launch DEEL initiative

The Federal Government through the Ministry of Youth and Sports disclosed that the selection process for the upcoming Digital Skills Training has been concluded for the #DigitalSkillsTraining from April 11th to 30th, 2021.

This was disclosed in a statement by the Ministry of Youth and Sport on Sunday evening.

“The Federal Ministry of Youth and Sports Development wishes to inform the general public and all Nigerian Youths that the selection process has been concluded for successful applicants for the #DigitalSkillsTraining scheduled for April 11 to 30, 2021,” the statement said.

The Ministry added that only successful applicants that were contacted by the Ministry are to report at the training venue. Those who were not successful but arrive at the training would not be admitted.

Upcoming #DigitalSkillsTraining Programmes of the Ministry will be widely publicized on youthandsport.gov.ng , on : noya.ng and on the Ministry’s social media handles,” the statement added.

What you should know 

Recall that Nairametrics reported in November 2020, that the Ministry of Youths and Sports Development announced it will scale up its digital skills training to cover 500,000 youths across the country after securing funding under the COVID-19 stimulus budget.

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