Oil prices steadied above 48 dollars a barrel yesterday recovering from earlier losses as the dollar weakened against the euro.
Brent crude oil futures rose 22 cents to 48.38 dollars a barrel.
U.S. West Texas Intermediate (WTI) crude futures rose 10 cents to 45.25 dollars a barrel.
The euro rose for a second day against the dollar after an 11-year low on Monday.
Prices were also supported after the Secretary-General of the Organization of the Petroleum Exporting Countries, Abdullah al-Badri, said oil prices may have bottomed out.
He warned of a jump of oil price to 200 dollars a barrel if investment in new supplies was too low.
Michael Hewson, chief market analyst at CMC Markets, said that the effects of the weakened dollar and the residual effect of Badri’s comments were temporary.
“I certainly don’t think it changes the fundamental dynamic of the direction of prices with regard to oil,” said Hewson.
“When you look at where Brent is and where it’s been, there’s a pretty solid floor at the moment around 47 dollars a barrel.”
Standard Chartered said OPEC’s decision to keep production high was beginning to impact other producers.
“Non-OPEC output is being hit hard, and we now expect the oil market to tip into supply deficit in H2,” the bank said.
Traders said there were other signs of a potential market pick-up.
“I’m not sure if prices have bottomed out, but I can see some signs for prices to rebound,” said Yusuke Seta, a commodity sales manager at Newedge Japan.
He was referring to a rise in Brent’s open interest in the past few weeks.
Brent’s open interest on the Intercontinental Exchange (ICE) hit 1.69 million lots in the week of Jan. 20, a record high since the data started in 2011.
The next data on supply will come later in the day from U.S. commercial crude stockpiles, which likely rose nearly 4 million barrels last week, a Media survey showed.
U.S. crude stockpiles posted the largest build in 14 years in the previous week.
Trading volumes are likely to be limited later on Tuesday as a snow storm is expected to disrupt transport in New York.
NSE Begins Week On Negative Note, Loses N19.49bn
The Nigerian stock market began the week on a negative note as banking and consumer goods stocks, among others, triggered a N19.49bn loss.
At the end of trading on the floor of the Nigerian Exchange Limited , the NGX All-Share Index dropped by 0.09 per cent to end at 43,270.94 basis points, while the market capitalisation declined to N22.58tn.
Market activities were mixed as the total volume of shares traded decreased by 30.19 per cent while the value traded rose by 34.05 per cent.
A total of 213.13 million shares valued at N2.36bn were exchanged in 4,105 deals, compared to 305.32 million shares worth N3.58bn in 4,450 deals last Friday.
FCMB Group Plc topped the traded stocks in terms of volume, accounting for 27.43 per cent of the total volume of trades while Airtel Africa Plc emerged as the most traded stock by value, representing 28.81 per cent of the total value of trades on the exchange.
14 firms gained compared to 21 losers.
AIICO Insurance Plc was the biggest gainer for the day, topping the gainers’ chart with a price appreciation of 8.57 per cent to N0.76 per share.
It was followed by LivingTrust Mortgage Bank Plc with a rise of 7.95 per cent, ending the day at N0.95 per share.
Analysing by sectors, three of the five major indices closed lower, led by NGX Oil & Gas (-0.56 per cent), NGX Consumer Goods (-0.23 per cent) and NGX Banking (0.18 per cent).
But the insurance (0.82 per cent) and industrial goods (0.002 per cent) indices gained at the end of trading.
… Introduces TIES To Boost Business Loan
The Central Bank of Nigeria (CBN) has introduced the Tertiary Institutions Entrepreneurship Scheme (TIES), which provides undergraduates and graduates with a platform to access loans.
The TIES’ underlying aim is to provide access to capital for Nigerian undergraduates and graduates with innovative entrepreneurial and technological ideas from polytechnics and universities.
TIES intends to shift undergraduates and graduates away from white-collar job pursuits and towards a culture of entrepreneurship development for economic development and job creation.
In a national biennial entrepreneurship competition, the Developmental Component would be distributed in the form of awards to Nigerian polytechnics and universities.
The competition aims to increase undergraduates’ awareness and visibility of high-impact entrepreneurial/technological concepts, foster entrepreneurial talent hunts in Nigerian polytechnics and universities, and encourage commercially viable and transformative technologies.
Interested Nigerian polytechnics and universities shall apply to participate in the national biennial entrepreneurship competition on a dedicated online portal.
Outlining brief details of the project, potential impact and evidence of originality of project, CBN said it is an innovation for students entrepreneurs.
CITN Applauds FG, Tax Authorities On Fiscal Policy Decisions
The Chartered Institute of Taxation of Nigeria (CITN) has lauded the Federal Government and tax authorities on the giant strides made on fiscal policy decisions and tax administration measures initiated this year in the area of Finance Act 2021 and the introduction of TaxPromax solution.
President of the institute, Adesina Adedayo, who gave the commendation at the institute’s yearly award ceremony at the weekend in Lagos, assured the government and tax authorities of aligning with the measures and promised to provide professional thoughts and insights on ways through which they could achieve an efficient and effective Nigerian tax system.
Adedayo emphasised the need to address the database, adding that without knowing who the tax-payers are, there is no way they can take money from unknown tax-payers.
Database is the aspect we have been emphasising on as an institute and in doing this, there are so many of pockets of data we have. All the data must be harmonised to have a simple unique tax-payers identification number,” he said.
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