The Nation Newspaper

Tag: lower

  • OPEC sees surplus, lower demand for oil

    OPEC sees surplus, lower demand for oil

    The Organisation of Petroleum Exporting Countries (OPEC) yesterday said its oil production jumped in June and forecast world demand for its crude will decline next year as rivals pump more. It pointed to a market surplus next year despite an OPEC-led output cut.

    Giving its first 2018 forecasts in a monthly report, the oil cartel said the world will need 32.20 million barrels per day (bpd) of crude from its members next year, down 60,000 bpd from this year.

    It said its oil output in June rose above the demand forecast, led by gains in Libya and Nigeria, two members exempt from the cut aimed at eliminating excess supply. Its officials nonetheless remain upbeat on the outlook.

    “We remain very optimistic (about) helping the market to rebalance itself,” OPEC Secretary-General Mohammad Barkindo said at an industry conference in Istanbul.

    Oil rose above $48 a barrel yesterday as a United States (U.S.) report of falling inventories in the U.S. raised hopes that the glut is easing.

    OPEC referred to an “ongoing rebalancing” of the market.

    Under the supply deal, it is curbing output by about 1.2 million bpd, while Russia and other non-OPEC producers are cutting half as much, until March next year.

    The group’s production has increased in recent weeks, in part due to the recovery in Libya and Nigeria, which were exempted from the supply cut as domestic conflict had curbed their output.

  • Kerosene price decreases by 11.59 % in March

    Kerosene price decreases by 11.59 % in March

    The average price per litre of household kerosene in March was lower by 11.59 per cent at N311.56k compared with N352.42k in February, the National Bureau of Statistics (NBS), said.

    The “National Household Kerosene Price Watch (March 2017)’’ in the Consumer Price Index for the month, released in Abuja on Thursday, indicates, however, that the rate was higher by 39.50 per cent year-on-year.

    It listed the states with the highest average price per litre of kerosene as Taraba (N347.22), Plateau (N340.48) and Cross River  (N399.71).

    The states with the lowest average price per litre of the product during the month were Gombe (N273.81), Zamfara (N271.57) and Oyo (N267.54), the bureau added.

    Similarly, the report indicates that average price per gallon paid by consumers for Kerosene decreased by 14.15 per cent month-on-month.

    It adds that the gallon price increased by 53.84 per cent year-on-year to N1,172.78.

    “States with the highest average price per gallon were Kebbi N1,376.92, Sokoto N1,350 and Borno N1,338.89.

    “States with the lowest average per litre include Oyo N99.67 and Ebonyi N967.80.’’

  • NACCIMA seeks lower interest rate for investors

    NACCIMA seeks lower interest rate for investors

    To diversify the economy into the non-oil sector, there is need for  the government to ensure lower interest for investors, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has said.

    Its President, Bassey Edem, said the  interest rate charged investors by banks to investors were too high to stimulate the much-needed growth to lift the economy out of the woods.

    He spoke on the sideline of the review of the state of the economy and perspective on some trending socio-economic issues in Lagos.

    He described the economic situation as harsh, adding that rising inflation has reduced the real income and the purchasing power of the average Nigerian.

    He noted that inflation rate had risen from 9.55 per cent to 16.45 per cent since the beginning of the year, the highest point since 2005.

    He said the Gross Domestic Product (GDP) growth rate in the first quarter of the year was minus 0.36 per cent compared with the growth rate in the fourth quarter of last year, which it said, was 2.11per cent while the GDP growth rate in the first quarter of last year was 3.96per cent.

    Again, the same time, external reserves, decreased from $28.02 billion as at last February to $26.35 billion.

    Monetary Policy Rate (MPR), according to him, has been increased to 14 per cent from 11 per cent by last February.

    Edem added that the interest rate maintained a double digit figure, with the prime lending rate at 16.13 per cent and maximum lending rate of 26.73 per cent.

    The NACCIMA chief said the real sector is suffering from rising costs of production in a state of near economic stagnation while facing the prospects of being the base by which the government hoped to obtain tax revenue to finance the economy.

    “We note that the private sector, and by proxy, the majority of the populace which still exhibits confidence in the present administration are waiting anxiously to see the “Change” and dividends of democracy promised”.

    He urged the government to continue its fight against insecurity and corruption, adding that it should also stimulate the  economy.

    He said NACCIMA would continue to partner the government in actualising its economic plan for the country to ensure economic transformation and social development of the nation.

    “In the last six months, the outlook of the economy has been bleak. The rate of inflation has almost doubled, electricity generation has reduced by almost 50 per cent and the price of petroleum products has also doubled.

    “Again, foreign exchange earnings have continued to drop significantly due to reduction in output caused primarily by the vandalism of infrastructure and low crude oil prices in the global market,” he noted.

    Edem, who acknowledged the Federal Government for addressing these issues, said these  have not translated into measurable positive indicators, adding that it has rather led to recession has become worrisome to private sector operators.

  • Swiss Re profit rises by 14 % on lower catastrophe losses

    Swiss Re profit rises by 14 % on lower catastrophe losses

    Swiss Re, the world’s second-biggest reinsurer, said its third-quarter profit has risen by 14 per  cent after lower-than-expected losses from natural catastrophes.

    Net income rose to $1.23 billion from $1.07 billion in the year-earlier period, the Zurich-based reinsurer said in a statement. That beat the $928.6 million average estimate of 13 analysts surveyed by Bloomberg.

    Swiss Re is cutting back on catastrophe coverage and moving into new lines of business to bolster earnings growth as low interest rates and fewer natural disasters undercut prices. Munich Re, the world’s largest reinsurer, said third-quarter profit rose by 16 percent, while German rival Hannover Re reported a 21 percent increase for the period.

    Chief Financial Officer David Cole said in the statement: “I’m pleased to report that all business units have again delivered solid performance during the third quarter, contributing to an overall strong group result.

    “This performance was supported by a lower-than-expected loss burden from natural catastrophes as well as a continued improvement in the life and health operating margin.”

    Swiss Re has fallen about five percent this year, valuing the company at 29 billion Swiss francs ($29.8 billion). That compares with a 4.3 percent increase in the 32-company Bloomberg Europe 500 Insurance Index.

    Swiss Re wants to invest $3 billion of its excess capital at an 11 per cent  return on equity by next year. It does not disclose how much of the capital it holds.

    Reinsurers such as Swiss Re that help primary insurers cover the costs of damage claims from disasters like floods and hurricanes are under pressure from declining prices for their coverage and years-long slump in borrowing costs across developed countries.