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‘Global Growth’ll Increase Oil Demand, Market Stability In 2021’

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The Organisation of Petroleum Exporting Countries (OPEC), has stressed that the estimated 4.8 per cent global growth will culminate in oil market stability this year.

This is even as the price of Bonny Light, Nigeria’s premium oil grade, dropped from $65.70 to $63.11, while OPEC Basket, and other crudes also dropped marginally over uncertainty about the outcome on the ongoing 49th Meeting of the Joint Technical Committee (JTC) (Videoconference).

However, speaking at the meeting, Secretary General, OPEC, Mohammad Sanusi Barkindo, stated, “The economic recovery is gaining momentum. This is reflected in our latest global growth estimate of 4.8% for 2021, up from the 4.4% projection we shared at our last meeting. This is a major turnaround from the grim conditions of 2020, with our most recent estimates showing the global economy plummeting by 3.9%.

“2021 is the Year of the Ox in China, a fitting symbol for this sturdy economy. China, which emerged from last year as the only major economy to remain in positive growth territory, continues to exceed expectations and is forecast to grow by 7.4% this year.

“India’s economy, which fell 8.2% in 2020, is now expected to expand by 7.5% in 2021. We had earlier expected these key economies to expand by just under 7% this year. Globally, historic levels of fiscal and momentary support continue to lubricate the economic engines and keep us in forwarding gear.

“Last week, Federal Reserve Chairman, Jay Powell, put to rest any idea of an immediate course reversal when it comes to supporting the US economy. This welcome news was followed by the G20 finance ministers and central bankers announcing on Friday (February 26) that they will continue to support a strong global recovery, and they lent support to the idea of boosting the International Monetary Fund’s firepower so it can further assist developing countries.”

Barkindo,, who noted that the actions of the United States will also impact positively on the market, stated, “The Joseph Biden administration’s massive fiscal stimulus package, which passed its first legislative hurdle by winning US House approval last Saturday, continues to kindle hope for a sustained rebound. Against the backdrop of encouraging developments, oil demand remains on course to grow by 5.8 mb/d to just around 96 mb/d.

“The encouraging global economic developments and resilient demand in Asia are upside factors, especially beyond this quarter. Initial data from January this year show that crude oil processing in India rose to its highest level since November, 2019, fuelled by rising economic and industrial activity.

“This positive regional outlook is underscored by the comments of India’s Minister of Petroleum, Natural Gas and Steel, Dharmendra Pradhan, at the recent IEA-IEF-OPEC Symposium on Energy Outlooks. Pradham stated that his country’s energy demand is expected to rise by 3% per annum through to 2040, around three times the anticipated global demand increase.

“Our capable OPEC analysts will go into more detail about inventory levels in a moment. For now, let me say that the outlook continues to move in the right direction, and the data we have before us reflects improvements over last month’s report to this Committee. Preliminary data for January shows that OECD commercial stocks declined by around 11mb. At 3 billion barrels, they were around 140mb higher than the same time one year ago and about 126mb above the average for 2015 to 2019.

“Turning to the latest figures on days of forwarding cover, OECD commercial stocks fell by 1.4 days from December to January, to 69.2 days, which is slightly lower than a year earlier, but 7.4 days above the pre-pandemic five-year average.

“The oil storage situation also appears to be aided by a refocus in the US tight oil sector from production to generating cash flow and rewarding investors. US crude production fell by more than 10% in mid-February following extreme winter in key producing states like Texas, helping to offset the rise in US crude stocks due to the significant drop in refinery utilization rates. Also regarding inventories, global short-term floating storage has fallen every month since October and stood at 142mb in January this year, significantly less than the 250mb reached in mid2020.”

He, however, added, “In a further sign of light on the horizon, the key benchmarks have risen steadily so far this year along with other commodities, in particular metals, and traders continue to take a strong positive position in oil. Since January, the futures price structure of all three key markets has been in sustained backwardation, an indication that the market is tightening and the rebalancing process is gaining speed. We have come a long way from a year ago. The days of GDP and oil demand figures being in the red because of the pandemic-induced shock appear to be behind us.”

 

 

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NGO-ATLANTIC-OYOROKOTO ROAD’LL UNLOCK COASTAL PROSPERITY FOR RIVERS – FUBARA

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Rivers State Governor, Sir Siminalayi Fubara, has described the ongoing construction of the brand new 13.52-kilometre Ngo-Atlantic-Oyorokoto Road as a bold and visionary effort by his administration to open up the coastal region for economic growth and harness the full potential of the state’s blue economy.

 

The Governor made this remark during an inspection visit to the project site in Andoni Local Government Area. The road, being constructed by Monier Construction Company (MCC), cuts through challenging coastal terrain and leads to a newly identified beachfront facing the Atlantic Ocean.

 

Governor Fubara explained that while the original plan was to construct a road leading to Oyorokoto Town and its popular beach, his administration decided to expand the project to create an entirely new route that would open access to another pristine beachfront.

 

“We are doing another inspection today. This particular one is a virgin road, 13.52 kilometres of a new pathway to the blue economy,” Governor Fubara stated.

 

“Initially, we were constructing a road to Oyorokoto Beach, one of the finest tourist centres in this area. But as we progressed, we discovered another beach directly facing the Atlantic Ocean. It became clear that we shouldn’t limit development to just one site. We want to harness this new beach front as part of our broader plan to develop the blue economy.”

 

The Governor emphasised that the project, once completed, will not only improve access to coastal communities but also stimulate tourism and economic activities, boosting revenue for Rivers State.

 

Describing the area’s difficult terrain as challenging, he commended the contractor for its dedication, and expressed confidence that the road would be completed and commissioned by March next year.

 

“You can see for yourself, it’s a brand-new road in a very difficult terrain, just like the one we saw yesterday. But I strongly believe we will overcome it. From what we’ve seen today, the contractor, MCC, is doing their best, and by next year, hopefully by March, we’ll have the cause to commission this project and give God all the glory,” the Governor affirmed.

 

Governor Fubara also visited Opobo/Nkoro Local Government Area to assess the progress of work on the Epellema axis of the ongoing 5.2km Kalaibiama-Epellema road project featuring a 450-meter bridge.

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FUBARA HAILS PROGRESS OF WORK ON TRANS-KALABARI ROAD

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Rivers State Governor, Sir Siminalayi Fubara, has expressed satisfaction with the level of progress recorded on the ongoing Trans-Kalabari Road project, revealing that about 75 percent of the critical piling work has been completed.

Governor Fubara made this known while addressing journalists after an on-the-spot inspection of the 12.5-kilometre road project, which will connect the state capital to several Kalabari communities across the sea.

The Governor rode on a boat from a jetty at Rumuolumeni in Obio/Akpor Local Government Area through the rivers and creeks on the project route during the inspection.

The project was awarded to Lubrik Construction Company Limited, on May 15, 2024, with an initial 32-month completion timeline.

The Governor said the visit was aimed at verifying reports from the Ministry of Works regarding the project’s advancement. He commended the contractors for their dedication, and described the progress as “a true reflection of hard work and commitment to excellence.”

“The first phase of the project takes us to Bakana, and features four major river-crossing bridges and nearly five deck-on-pile structures. The terrain is difficult, and the engineering work required is complex. But to the glory of God, I can confirm that the reports I’ve been receiving are accurate. Almost 75% of the piling job, which is the most critical part of the project, has been achieved,” Governor Fubara said.

He emphasised that the Trans-Kalabari Road is one of the most technically demanding infrastructure projects in the state due to its challenging marine terrain but reaffirmed his administration’s resolve to deliver it on schedule.

Governor Fubara highlighted the strategic importance of the road in connecting the Kalabari Kingdom to Port Harcourt, and stimulating economic growth across riverine communities.

“This is a key project that will turn around the lives of the Kalabari people immediately it is concluded. By the grace of God, in the next six months, if we return here for inspection, we might be driving across the bridge,” he said.

Governor Fubara assured Rivers people that his administration remains focused on delivering transformative infrastructure projects that will improve lives and bring lasting development to rural communities.

“We have made a promise to our people to embark on projects that will change lives and bring development, and this is a testament to that commitment,” he added.

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RSG EXPRESSES CONCERN OVER FLOODING IMPACT, EROSION

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The Governor of Rivers State, Sir Siminalayi Fubara, says that the impact of flooding and erosion on the inhabitants of Rivers State, especially those living in coastal communities, are of great concerns to the government.

 

Governor Fubara lamented the consequences of flood on both human and biotic life, which sometimes lead to loss of life, property, and degradation of the environment.

 

The Governor made the remark in Port Harcourt during the launch of a book titled, ‘Coastal Zone Flooding And Erosion in Developing Communities, Principles, Cases and Strategies,” written by Emeritus Prof. Wiston Bell-Gam.

 

According to the Governor, who was represented by the Secretary to the State Government, Hon. Benibo Anabraba, his administration, would continue to undertake and encourage adaptation strategies to combat flooding.

 

In his words: “The Rivers State Government will continue to undertake and encourage adaptation strategies, such as construction of seawalls and breakers, canals and channels, restoring coastal ecology and ecosystem for coastal resilience and where necessary, the relocation of communities on the coastline.

 

“These issues are currently receiving the much needed attention and intervention by the recent approval of the construction of shoreline protection along the coastlines of more than five communities in Ogba/Egbema/Ndoni and Opobo/Nkoro LGAs respectively.”

 

“It is important that as stakeholders in the protection and preservation of marine environment, we all act and advocate for mitigation strategies such as reduction in emission of Green House Gasses  that causes climate change and rise in sea levels. Let us promote the use of clean energy and against fossil fuel.

 

Governor Fubara further cautioned residents to desist from building on waterways.

 

“We also need to encourage our people to stop developing buildings on and along natural water courses, indiscriminate sea mining and dredging activities on our coastline without consideration for mangroves and swamps,” he stressed.

 

He appreciated the author for his advanced contributions to the body of knowledge in both Rivers State and globally.

 

Also speaking, a former Military Governor of the old Rivers State and Amayanabo of Twon Brass, King Alfred Ditte-Spiff, who was Royal Father at the Event, stated that the book was timely to enable stakeholders manage the challenges of global warming.

 

“Global warming is real. If it’s not addressed globally, a time will come coastal areas will find themselves under water. The coastline of Nigeria is shocking with many mangroves gone,” he noted.

 

The Reviewer of the Book, who is also the Vice Chancellor of Olusegun Agagu University of Science and Technology, Ondo State, Prof Temi Ologunorisa, explained that the 14-chapter book is timeous as it fills literary gaps between desire and available knowledge on coastal flood and erosion in developing communities.,

 

“A major beauty of the book that sets it apart is the detailed consideration of flood and erosion control from around the world,” he stated, adding that the book is based on detailed field investigation.

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