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Brent Oil Rises To 108 Dollars

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Brent crude was 108 dol
lars a barrel last Thursday with most of the gains from the previous session as Chinese customs data showed crude imports jumped to a record high.
China’s crude imports rose 22.4 per cent in April from March. Oil data also showed that total exports rose against forecasts for a decline, offering some rare good news for the nation’s slowing economy.
“People are bearish on China, so any good news out of China it should at least provide some support,” said oil risk manager at Mitsubishi Corp in Tokyo.
Brent crude was down 23 cents at 107.90 dollars per barrel, after settling 1.07dollars  higher on Wednesday. U.S. crude was 22 cents lower at 100.55 dollars per barrel. The contract had gained 1.27 dollars in the previous session.
China’s crude oil imports rose to a record of  6.78 million barrels per day (bpd) in April, after slipping below six million bpd in March for the first time since November last year.
China’s imports for the first four months of the year were up 11.5 per cent from the same period in 2013. The sharp rise in April was likely due to builds in China’s strategic oil reserves, according to a Barclays research note.
China is to add 39 million barrels of strategic reserves , first half of the year , at two new storage facilities in Tianjin and Huangdao, Barclays analyst Sijin Cheng said. China’s total exports rose 0.9 per cent in April, while imports rose 0.8 per cent.
The country was left with a trade surplus of 18.5 billion dollars for the month, against expectations of a trade surplus of 13.9 billion dollars.
“We’ve seen a lot of negative headlines about China, but as long they can show a decent growth … it’s supportive for the oil market,” Nunan said.
Oil benchmarks rose by more than one dollar on both sides of the Atlantic on Wednesday. The rise occurred after data from the U.S. Energy Information Administration (EIA) showed an unexpected drop in U.S. inventories in the week ended May 2.
Total stocks fell 1.8 million barrels last week, according to the EIA, compared with analyst’s forecasts for a 1.4-million-barrel build.
Stocks fell 1.4 million barrels at Cushing, Oklahoma, delivery point for the U.S. futures contract, their lowest since 2008. Decline in stock negates efforts to restore vital oil exports from Libya .
Rebels occupying major oil ports in the east said on Wednesday they would boycott Prime Minister Ahmed Maiteeq and keep two major export terminals shut for now.
Optimism about higher Libyan exports had helped to put pressure on oil prices since the end of last month when oil ports shut since last year were reopened.
But Libyan oil production remains at just over 250,000 bpd, less than a fifth of output around 1.4 million bpd in mid-2013.
Russian President Vladimir Putin called on pro-Moscow separatists in Ukraine to postpone a vote on secession just five days before it was to be held. This move could remove some of the geopolitical heat from Brent.

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Nigeria Loses More Crude Oil Than Some OPEC Members – Nwoko

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Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended

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Tap Into Offshore Oil, Gas Opportunities, SNEPCO Urges Companies

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Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.

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Administrator Assures Community Of Improved Power Supply

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The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.

By: King Onunwor

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