Oil & Energy
Brent Oil Rises Above $125
Brent crude oil was steady above 125 dollars a barrel last week supported by fresh signs of a sustained recovery in top oil consumer, the United States.
Hopes for firmer oil demand rose after a key gauge of U.S. manufacturing activity beat expectations in March, a day after data showed a similarly strong performance by China’s factories.
The upbeat data offset disappointing economic numbers from Europe.
However, trading is likely to stay range bound ahead of the long Good Friday weekend and as the market watches for key jobs data from the United States due on Friday.
“The mood has changed a bit with the good PMI numbers from China and the U.S., although the risks in the euro zone remain,” said Victor Said, Informal Global Markets in Singapore analyst.
“The market took a breather and is likely to be subdued for the rest of the week.
“No one wants to be caught out during the long weekend, especially if there’s a surprise from the U.S. non-farm payrolls report.”
U.S. crude futures lost 35 cents to 104.88 dollars, after rising by more than two dollars in the previous session.
The threat of further supply disruptions also supported prices, as British oil major BP said it had shut the Valhall platform in the North Sea penultimate week. Traders said the shutdown led to loading delays of one of the four crude oil streams used for the global Brent price benchmark.
The Institute for Supply Management’s index of U.S. factory activity rose to 53.4 in March from February’s 52.4, topping economists’ expectations and keeping the reading above 50, indicating expansion in the sector.
Adding to the optimism, the Energy Information Administration (EIA) said U.S. oil demand in January was revised higher by 169,000 barrels per day (bpd) from the previous estimate.
But that still left demand down 853,000 bpd, or 4.46 percent, from a year earlier.
Ahead of weekly reports on U.S. oil inventories, crude stocks were expected to have risen last week, according to a media survey of analysts.
However, upbeat sentiment was dampened by ongoing concerns of slowing oil demand in major consumers Europe and Japan. There was also uncertainty surrounding Japan’s oil demand, after a top government spokesman said that a ministerial-level meeting last Tuesday would not yield a decision on the restart of two nuclear reactors.
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By Felicity Bradstock for Oilprice.com 16
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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