TheNewsGuru

Tag: Crude Oil

  • NNPC appoints Mallam Mele Kyari OPEC national representative

    NNPC appoints Mallam Mele Kyari OPEC national representative

    The Nigerian National Petroleum Corporation (NNPC) has announced the appointment of Mallam Mele Kyari, incumbent Group General Manager in charge of its Crude Oil Marketing Division, as Nigeria’s National Representative to the Organization of the Petroleum Exporting Countries (OPEC).

    The NNPC in a statement by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, said the appointment was made by Nigeria’s Head of Delegation to the OPEC Conference and the Honourable Minister of State for Petroleum Resources and Board Chairman of NNPC, Dr. Emmanuel Ibe Kachikwu.

    It noted that the position requires Mallam Kyari to lead Nigeria’s team to the OPEC Economic Commission Board (ECB) which precedes the bi-annual meetings of the OPEC Ministerial conference.

    TheNewsGuru reports the ECB reviews the global oil markets and makes input from the perspectives of the individual member countries.

    The corporation further explained that Mallam Kyari may also be required to provide any support to the Honourable Minister of State for Petroleum Resources and the OPEC Governor in the performance of Nigeria’s roles and participation in OPEC matters.

    A geologist, Mallam Kyari is a quintessential crude oil marketer with prerequisite certification and outfield pedigree in petroleum economics and crude oil and gas trading.

    Within the last 26 years he has traversed the entire value chain of the petroleum industry posting resounding performance in all his assignments and duty posts.

    Under his watch, the Crude Oil Marketing Division has recorded noticeable transformation in the management and sales of the various Nigeria’s crude oil grades via an infusion of transparency and automation of the processes.

     

  • Oil prices jump after U.S. abandons Iran deal, plans ‘highest level’ sanctions

    Oil prices rose more than two per cent on Wednesday, with Brent hitting a 3-1/2-year high, after U.S. President Donald Trump abandoned a nuclear deal with Iran and announced the “highest level” of sanctions against the OPEC member.

    Ignoring pleas by allies, Trump on Tuesday pulled the U. S. out of an international nuclear deal with Iran that was agreed in late 2015, raising the risk of conflict in the Middle East and casting uncertainty over global oil supplies amid an already tight market.

    Brent crude oil futures at one point touched their highest since November 2014 at 76.75 dollars per barrel.

    They were still at 76.52 dollars per barrel at 0628 GMT, up 1.67 dollar or 2.2 per cent, from their last close.

    U.S. West Texas Intermediate (WTI) crude futures were up 1.43 dollars per barrel, or 2.1 per cent, at 70.49 dollars a barrel, near highs also last seen in late 2014.

    In China, the biggest single buyer of Iranian oil, Shanghai crude futures hit their strongest in dollar terms since they were launched in late May, above 73.20 dollars per barrel.

    Analysts said the soaring prices were the result of an expected fall in Iranian oil exports.

    “Iran’s exports of oil to Asia and Europe will almost certainly decline later this year and into 2019 as some nations seek alternatives in order to avoid trouble with Washington and as sanctions start to bite,” said Sukrit Vijayakar, director of energy consultancy Trifecta.

    Iran re-emerged as a major oil exporter in 2016 after international sanctions against it were lifted in return for curbs on its nuclear program, with its April exports standing above 2.6 million barrels per day (bpd).

    That made Iran the third biggest exporter of crude within the Organization of the Petroleum Exporting Countries (OPEC), behind Saudi Arabia and Iraq.

    Walking away from the deal means that the United States will likely re-impose sanctions against Iran after 180 days, unless some other agreement is reached before then.

    ANZ bank said Trump’s decision “puts into place a scenario that could see the crude oil market tighten significantly in H2 2018 and into next year”.

    Several refiners in Asia told Reuters they were already seeking alternatives to supplies from Iran.

    “There are worries that Iran’s oil exports could fall by about one million barrels per day (bpd) from current levels,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo.

    “The oil supply/demand balance is roughly in balance now, but it could turn to a complete supply shortage (in case of new supply curbs).

    “Oil prices could rise at least 10 dollars (a barrel), with Brent approaching near $90,” Akuta said.

    All key crude oil futures contracts saw traded volumes jump as speculators took on new positions in the hope of profiting from rising prices, and as refiners hedged to protect themselves from higher feedstock oil prices.

    Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said the climb in traded crude futures volumes was so high it was “causing clearing delays”.

    Trying to ease market concerns, Saudi Arabia on Wednesday said it would work with other producers to lessen the impact of any shortage in oil supplies.

    The country has been leading efforts since 2017 to withhold production to prop up prices.

    We’re winning anti-corruption war, says Buhari

     

  • US technology frightens mono-economies – Buhari

    President Muhammadu Buhari on Monday during a joint press conference with President Donald Trump in Washington has said the advancement of the United States in terms of technology is frightening to mono-economies.

    TheNewsGuru reports President Buhari who was on a 3-day working visit to the US said the threat is majorly for nations, especially those in Africa that overly depend on crude oil to drive their economies.

    The President of the largest democracy in Africa, being the first African leader to visit President Trump in the White House, also harped on the need for the US to patronize Nigeria’s crude oil in the stead of Shell’s.

    “The progress made by the United States in technology is certainly frightening for us that are mono-economy. I hope technology will allow them use our crude for its quality, for petrochemicals, being light one, vis-à-vis what they are getting from Shell,” he said.

    In his reaction, President Trump stressed the need to take down certain trade barriers between the United States and Nigeria, while also revealing that the US is working to expand trade and commercial ties with African nations, including Nigeria.

    “The United States is currently working to expand trade and commercial ties with African nations, including Nigeria; to create jobs and wealth in all our countries. We hope to be the economic partner of choice for nations across the continent and around the world.

    “Nigeria is a valued partner and a great friend. The United States is committed to working alongside Nigeria as we seek a future of strength, property, and peace for both of our countries,” he said.

    TheNewsGuru reports Trump went further to say that he is pleased with Nigeria as one of the US largest trade partners in Africa.

    He said his country is looking further to growing the trade relationships with Nigeria based on the principle of fairness and reciprocity.

    The US President revealed that his country gave Nigeria over $1 billion in aid every year; “And we have already started talking with the President about taking down the trade barriers”.

    “Very substantial barriers to the United States trading with Nigeria. So, we think that we are owed that,” he added.

    The US President, who acknowledged steps President Buhari has taken in the fight against corruption in Nigeria, the largest democracy in Africa, said it will be easier for the US to invest in Nigeria if the barriers were taken down.

    “President Buhari has also taken steps to fight corruption and improve the Nigerian business climate and most of all and to me helping rip down the trade barriers.

    “It will make it easier for the United States and companies to invest, and we will be investing substantially in Nigeria if they can create that level playing field that we have to very much ask for and maybe demand,” he said.

    When asked what the US government is doing to repatriate stolen and illicit funds back to Nigeria to fund critical infrastructure, Trump said “We have also discussed all of those topics at length over the last period of time”.

    He added that “In terms of corruption, Nigeria has a reputation as you understand very well for very massive corruption. I also know the President has been able to cut that down very substantially.

    “We talked about it. He is working on it and they have made a lot of progress and I think they will continue to make a lot of progress.

    “We have a lot of people in this country, and frankly speaking the country itself, that invest in Nigeria.

    “So, cutting down on that element and a corrupt element is very important to us. And the President will be able to do that”.

    The US President stressed that more than anything else he discussed with President Buhari was US agricultural products coming into Nigeria, which he said Nigeria wants but that there have certain barriers that do not allow that to happen.

    “So for the good of our farmers, US farmers and for the good of Nigeria, and all of Africa, it is very important that we are able to sell our great agricultural products into Nigeria.

    “That will happen and we are going to be working on that right away,” he said.

     

  • Supply cuts,strong demand, pushes oil price close to late-2014 highs

    Oil prices held firm on Friday near three-year highs reached earlier this week as ongoing OPEC-led supply cuts, as well as strong demand, gradually draw down excess supplies.

    Brent crude oil futures were up at 73.79 dollars per barrel at 0440 GMT.

    U.S. West Texas Intermediate (WTI) crude futures down 2 cents at 68.40 dollars a barrel.

    Both Brent and WTI hit their highest levels since November 2014 on Thursday, at 74.75 and 69.56 dollars per barrel respectively. WTI is set for its second weekly gain.

    Oil prices have been pushed up by a gradually tightening market.

    Led by top exporter Saudi Arabia, the Organization of Petroleum Exporting Countries (OPEC), has been withholding production since 2017 to draw down a global supply overhang.

    The tighter oil market is feeding into refined products.

    Oil supply tightness is also a result of healthy oil demand.

    Beyond OPEC’s supply management, crude prices have also been supported by an expectation that the United States will re-introduce sanctions on OPEC-member Iran.

     

  • Oil prices rise to $70 on strong economy amid OPEC cuts

    Oil prices were firm on Wednesday, receiving ongoing support from healthy economic growth as well as from supply restrictions led by a group of producers around the Organisation of the Petroleum Exporting Countries (OPEC) and Russia.

    Spot Brent crude oil futures, the international benchmark for oil prices, were at 70 dollars a barrel at 0102 GMT, up 4 cents from their last close.

    U.S. West Texas Intermediate (WTI) crude futures were at 64.59 dollars a barrel, up 12 cents .

    In the latest sign of healthy global economic growth, Japanese manufacturing activity expanded at the fastest pace in almost four years in January, a survey showed on Wednesday.

    Economic growth is translating into healthy oil demand growth, which comes at a time that OPEC and Russia lead production cuts aimed at tightening the market and propping up prices.

    The deal to withhold output started in January last year and is currently set to last through 2018.

    Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore said a “beaming economic forecast along with stout compliance from OPEC (to withhold production) is providing convincing support.”

    In spite of the overall supportive market conditions, which have seen crude futures rally by almost 15 percent since early December, there are signs that traders are preparing for a downward correction.

    One way of doing that is to take out so-called put options on crude futures contracts which give a trader the right, but not the obligation, to sell at a certain price.

     

  • Price of brent crude oil rises to all time high since December 2014

    The price of brent crude oil rose to 70 dollars a barrel on Monday, supported by ongoing output cuts led by OPEC and Russia, and ignoring a rise in U.S. and Canadian drilling activity that points to higher future output in North America.

    Brent sweet crude futures, the international benchmark for oil prices, were at 70 dollars per barrel at 0558 GMT, up 13 cents from their last close.

    U.S. West Texas Intermediate (WTI) crude futures were at 64.53 dollars a barrel, up 23 cents.

    Both benchmarks last week reached levels not seen since December 2014, with Brent touching 70.05 dollars a barrel and WTI reaching as high as 64.77 dollars.

    ANZ bank said on Monday that oil prices had recently risen on data that continued to show that the market was tightening.

    Oil markets had been well supported by production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia which were aimed at propping up crude prices.

    The cuts started in January last year and were set to last through 2018, and coincided with healthy demand growth, pushing up crude prices by more than 13 per cent since early December.

    But other factors, including political risk, also supported crude.

    “Tighter fundamentals are (the) main driver to the rally in prices, but geopolitical risk and currency moves along with speculative money in tandem have exacerbated the move,” U.S. bank JPMorgan said in a note.

    Attracted by tighter supplies and strong consumption, financial investors have raised their net long U.S. crude futures positions, which would profit from higher prices, to a new record, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

    U.S. energy companies added 10 oil rigs in the week to Jan. 12, taking the number to 752, energy service firm Baker Hughes said on Friday.

    That was the biggest increase since June 2017. ANZ bank said the jump came “as shale producers quickly reacted to the strong rise in prices in 2018.”

    The picture was similar in Canada, where energy firms almost doubled the number of rigs drilling for oil last week to 185, the highest level in 10 months.

    The high prices for crude, which is the most important feedstock in the petroleum industry, have also crimped profit margins for oil refiners, resulting in a decline in new crude orders.

     

  • Nigeria’s inability to refine crude oil shameful – Kachikwu

    Nigeria’s inability to refine crude oil shameful – Kachikwu

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, on Thursday, described as shameful Nigeria’s inability to refine her crude oil.

    He stated this during the investigative public hearing on the current scarcity of petrol in different parts of the country.

    The minister vowed that the Federal Government would ultimately address the problem.

    Meanwhile, there was a mild drama at the Thursday hearing as three persons claimed during the introductory session they were the National president of the Independent Marketers Petroleum Association of Nigeria (IPMAN).

    The trio were – Sanusi Fari, Chinedu Okorokwo and Obasi Lawson.

    However, the Senate Committee on Petroleum Resources (Downstream) resolved that only the Executive Secretary of IPMAN, Aminu Abdulkadir‎, should speak for the association.

     

  • Nigeria realises N118tn in 53 years from crude oil – NBS

    Nigeria realises N118tn in 53 years from crude oil – NBS

    The National Bureau of Statistics says Nigeria has realised more than N118tn from crude production and refining from 1961.

    The NBS report, which has additional data from the Nigerian National Petroleum Corporation, collated its statistics from 1961 till 2014.

    “The petroleum statistics on crude oil production and oil refining reflects that a total 32.70 billion barrels of crude oil valued at N118.49tn has been produced between 1961 and 2014.

    “The highest barrels of crude production was recorded in the year 2005 with 918.66 million barrels valued at N6.14bn.

    “The lowest was, however, recorded in 1961 with 16.80 million barrels valued at N18.73m.

    “The yearly domestic crude oil refining data from 1997 to 2014 also reflected that 844.19 million of crude oil has been received and 835.58 million processed within the period under review,’’ the report stated.

  • NNPC raises alarm over international crude oil fraudsters

    NNPC raises alarm over international crude oil fraudsters

    The Nigerian National Petroleum Corporation (NNPC) Tuesday raised the red flag on the activities of con men who specialize in circulating phantom letters of crude oil allocation with the intent of defrauding unsuspecting would-be buyers or members of the public.

    Speaking at the presentation of commendation letters to 12 staff of the Crude Oil Marketing Division of the Corporation in Abuja, the Group Managing Director of the Corporation, Dr. Maikanti Baru, said the activities of the international fraudsters created an unnecessary distraction for staff of the COMD who were compelled to deal with huge turnover of scam mails on a regular basis.

    According to the NNPC statement that made this known, he urged members of the public to be wary of such dubious emails purporting to emanate from the Corporation with mouth-watering crude oil allocation offers.

    Providing an insight into the activities of the nefarious group, the Group General Manager in charge of the Crude oil Marketing Division of the Corporation, Mallam Mele Kyari, said the scammers function by sending fake crude oil allocation letters using names of senior NNPC officials as decoy and requesting the gullible individuals to pay certain cash deposits as commission on volume of crude received.

    “The gullible individuals end up paying huge sums of dollars into these accounts as commission but the reality is that nobody allocates crude oil on a piece of paper the way the scammers canvass in their dubious letters. Everything about crude sale is electronic and real time. If you have your cargo the whole world knows,” Kyari said.

    To tackle the challenge, the COMD has made available the email contacts of its top officials thus allowing members of the public access to verify such emails.

    In a similar vein, the division has embarked on the automation of the Direct-Sale –Direct-Purchase (DSDP) crude oil for product exchange scheme to ensure transparency of the process.

    According to Kyari, the idea is to guarantee an end-to-end access to the DSDP programme online for relevant stakeholders to monitor the process from the point of crude oil allocation to conversion, return of products to the country and distribution by the Nigerian Products Marketing Company (NPMC) to the ultimate transfer of the Naira cash into the Federation Account.

    He said though some form of automation of the process exists at the moment, the new programme which would be delivered by next month would provide insight into the minutest details of the entire transaction.

    The GMD, while presenting letters of commendation to the 12 staff of the division for outstanding service, urged them not to rest on their oars, stressing that the Corporation would as always incentivize hard work and commitment to service delivery.

  • Nigeria’s oil exports to slip in October

    Nigeria’s oil exports to slip in October

    Nigeria’s total exports are set to slip in October, possibly to a five-month low, according to loading programmes.

    Export plans for most grades were showing levels of roughly 1.72 million bpd, compared with 1.88 million bpd in September, according to a Reuters’ report.

    While some cargoes would likely be added, the current plan stands at a five-month low, and was expected to remain slightly below September’s loadings of 1.88 million bpd, the report stated.

    August’s exports had been on track to exceed two million bpd, a 17-month high, but the closure of the export pipelines for Bonny Light crude pulled them lower. The final schedule also included about 1.88 million bpd.

    Shell’s lifted its latest force majeure declaration on Bonny Light early last week, meaning all the nation’s export grades are again free of restriction.

    Nigeria’s oil output has rebounded this year, aided by concerted government efforts to placate militants in the restive Niger Delta region where the bulk of the nation’s crude is produced, but it has struggled to maintain peak output levels.

    Theft from the nation’s oil pipelines in the Delta region leads to frequent shutdowns, limiting output. PRODN-NG Additionally, unrest still threatens some oil infrastructure despite the government’s efforts.

    Three cargoes of Akpo condensate, with 97,000 bpd, are also set to load in October, compared with four cargoes of 133,000 bpd in September.

    It stated that key grades Bonny Light, Brass River and Qua Iboe loading plans were all smaller than the September programmes, and there were no exports planned for Abo, Antan or Pennington.

    Forcados exports were scheduled to rise to 256,000 bpd, and Erha also showed an increase.

    The Nigerian National Petroleum Corporation raised official selling prices in September for Bonny Light and Qua Iboe crude oil to dated Brent plus 48 cents and 82 cents per barrel respectively.

    The August differential for Bonny Light was dated Brent plus three cents, while for Qua Iboe, it was 13 cents per barrel.

    Sonangol had allocated all but two of its October loading cargoes, one Dalia and one Saturno. It offered each at premiums of 15 cents versus dated Brent.

    The October export plan of 1.7 million bpd was the highest since September 2016.

    Sellers are hoping to maintain differentials, which hit three-year highs for certain grades.