Oil Market Update:
‘Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 Million Barrels a day, not the 10 Million that is generally being reported. If anything near this happens, and the World gets back to business from the Covid 19 …’ President Trump
President Trump’s tweet was corroborated by Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, in an interview with CNBC. Though, what’s widely reported is 9.7 million bpd, there are other agreements and voluntary commitments to cut production in the coming months until it gets to around 20 million bpd.
The twenty million bpd production cut is historic and significant because it’s closer to what commodity experts say is required to sop up excess crude flooding the market, address the destruction of demand caused by the COVID-19 pandemic and position oil prices for stability in the coming months.
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The cut is a major boost for oil-producing nations like Nigeria, it will boost our revenue, provide some assurance around our foreign reserves and stability of the Naira. The cut also officially ends the price war between Saudi Arabia and Russia that flooded the world with unneeded crude and amplified the crash in oil prices.
On the flip side, since subsidy has been removed, a sustained increase in oil prices will surely lead to an increase in pump price of fuel in Nigeria…’let’s wait and see’.
Stock Market Update:
Nigeria’s equity market is off to an early gain, currently up by 0.47%, FTSE (UK) – down by 0.38%, DAX (Germany) – up by 1.05%, CAC 40 (France) – up by 0.23% and Nikkei 25 (Japan) – up by 3.13%.
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Money Market Update:
Our money market fund is still open and yield is currently over 11.5%, reach out to our team to grow your cash. We are digital, we are working from home, we are online and we are active. You can also do deposits with us at a starting rate of 10%.
See below for more news headlines.
Debt service to revenue ratio rises to 48%
The revision of the 2020 revenue framework has raised the Federal Government’s debt service to revenue ratio from the initial 29 per cent to 48 per cent. The Executive last Wednesday sent a revised 2020 budget proposal to the National Assembly following a drop in crude oil prices caused by the impact of the coronavirus pandemic. Read more
Crude cuts: Nigeria to earn $10.61bn in eight months
Nigeria may earn about $10.61bn from crude oil sales between May and December this year following latest decision by members and non-members of the Organisation of Petroleum Exporting Countries to cut production. Also, the country will earn about $22.74bn from crude oil between January 2021 and April 2022 going by the volume of crude oil curtailment to be implemented by Nigeria during the 16-month period, as agreed by OPEC+. Read more
IMF excludes Nigeria from 25 nations granted debt relief
The International Monetary Fund has granted debt relief to 25 countries, mostly African nations excluding Nigeria. A statement by the Managing Director of the IMF, Kristalina Georgieva, said it would provide $500m in grant-based debt service relief to these countries. Read more
Oil rises amid hopes for quick decline in U.S. shale output
Oil prices rose more than 1% on Tuesday after the main U.S. energy forecasting agency predicted shale output in the world’s biggest crude producer would fall by the most on record in April, adding to cuts from other major producers. The Organization of the Petroleum Exporting Countries, along with Russia and other producing countries – known as OPEC+ – agreed over Easter to cut output by 9.7 million barrels per day (bpd) in May and June, equal to about 10% of global supply before the viral outbreak. Read more
Oil hovers around $31 despite OPEC+ cut deal
The international oil benchmark, Brent crude, wobbled on Monday, despite the historic oil production cut deal sealed by the Organisation of Petroleum Exporting Countries and its allies on Sunday. The OPEC, Russia and other countries agreed on Sunday to cut output by 9.7 million barrels per day in May and June, representing about 10 per cent of global supply. Read more
Dollar slips as Chinese trade data brightens mood
The dollar slipped on Tuesday and the Australian dollar led a rally in riskier currencies as China’s trade data painted a less gloomy picture of the coronavirus’ economic fallout than markets had feared. China’s March exports fell 6.6% from a year earlier, compared with a forecast for a 14% drop and imports fell by less than 1%, compared with a 9.5% drop anticipated by economists. Read more
Latest on the spread of the coronavirus around the world
More than 1.88 million people have been reported to be infected by the novel coronavirus globally and 119,168 have died, according to a Reuters tally, as of 0200 GMT on Tuesday. Read more
Trump Says Decision to Restart U.S. Economy to Be Made ‘Shortly’
President Donald Trump asserted in a tweet Monday that the decision to restart the economy was solely his and that such a decision will be made “shortly”. “It is the decision of the President, and for many good reasons” and not that of local officials, Trump tweeted. Read more
Corporate Disclosures:Union Bank Nigeria Plc – Dividend Information for 2019 AFS
Union Bank of Nigeria Plc hereby announce as follows: A Final Dividend of N0.25k for every 50 kobo ordinary share, subject to appropriate withholding tax and approval of shareholders at the next Annual General Meeting will be paid to shareholders whose names appear in the Register of Members as at the close of business 24th April 2020. Read more
Fidelity Bank Plc – Notice of Board Meeting and Closed Period for 2020 Q1 Accounts
Fidelity bank has announced that its board of directors will hold a board meeting on Thursday, 24 2020 to consider and approve the bank’s unaudited financial statement for the first quarter of the 2020 financial year. Read more