After a turbulent April, we can now see light at the end of Bonny

After a turbulent April, we can now see light at the end of Bonny

“At this point, we have seen a gradual easing of the situation. Those numbers of the uncommitted cargoes have gone down drastically and that’s why we see a gradual rise in prices in the last three to four days. It means that those uncleared transactions are now easing off.” Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, 17th May 2020

“Today, I can share with you that there are over 12 stranded LNG cargoes in the market globally. It has never happened before. LNG cargoes that are stranded with no hope of being purchased because there is abrupt collapse in demand associated with the outbreak of coronavirus,” Mallam Kyari, 12th March 2020

“After ‘Black April’, the heaviest demand destruction may be behind us…” IEA Executive Director Fatih Birol tweeted. “We see early signs markets have begun the rebalancing process.”

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Nigeria’s Bonny Light traded as low as $14.75 on 21st April, it has gained over 100% since then. At the weekend it gained over 10% to close at $29.84. The uptick in oil prices has fuelled the growth in the country’s Fx reserves.

Fx reserve has added over $1.5 billion since the beginning of May following months of zero growth, raising hopes of a more stable exchange rate on the naira as soon as the CBN starts to supply dollars to the fx windows it has muted supply since March.

  • 14th May – $122.87 million
  • 13th May – $127.29 million
  • 12th May – $126.96 million
  • 11th May – $358.08 million
  • 8th May – $112.32 million
  • 7th May – $101.66 million
  • 6th May – $98.24 million
  • 5th May – $94.49 million
  • 4th May – $371.59 million


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