Business
Oil Tops $116 On Fed Stimulus Hopes
Oil prices rose on Thursday to top 116 dollars a barrel on
renewed hopes for a third round of monetary stimulus by the U.S. Federal
Reserve despite weak economic data from China.
Brent crude futures were up 1.34 to 116.25 dollars a barrel,
rising for a third straight session.
U.S. crude was up 84 cents at 98.10 dollars per barrel, off
a three-month high of 98.29 dollars earlier in the session.
Investors and traders are betting that additional monetary
stimulus is imminent following minutes from the last U.S. central bank meeting,
released late on Wednesday.
The minutes noted many Federal Reserve members “judged that
additional monetary accommodation would likely be warranted fairly soon” unless
the economy improves considerably.
This is being interpreted as; the Federal Reserve could act
at next week’s Jackson Hole Symposium where its Chairman Ben Bernanke is
scheduled to speak along with European Central Bank President Mario Draghi.
Dominick Chirichella of the Energy Management Institute
noted that Bernanke had announced the second round of quantitative easing at
Jackson Hole in 2010.
Further stimulus may weaken the dollar, which in turn will
lift commodities priced in dollars, while any boost to the U.S. economy from
the stimulus may also drive up oil demand.
“Market sentiment after the Fed minutes suggests we’ll see
further price gains today,” said Carsten Fritsch, an energy analyst at
Commerzbank in Frankfurt.
Copper rallied to a one-month high on the news, gold and
silver rose to three-month highs and European shares were up in early trading.
The stimulus hopes outweighed disappointing data from China
which signaled that the slowdown in the world’s biggest energy consumer had
extended into the third quarter.
The HSBC Flash China manufacturing purchasing managers index
(PMI) fell to 47.8 in August, its lowest level since November, down from 49.5
in July.
After hovering for several months just under the 50 mark
that divides expansion from contraction, the index is now at levels rarely seen
since the 2008-2009 global financial crisis.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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