Oil & Energy
Oil Slips Below $75 Amid Global Doubts
Oil fell below $75 a barrel Friday, beginning the second half of the year on a weak note after falling nearly five per cent in the first half, as signs of slowing economic growth in China fuelled energy demand doubts.
The pace of manufacturing growth in the world’s second largest oil consumer slowed in June as government steps to cool the property market and curb bank lending combined with a faltering global recovery.
United States crude for August delivery fell $1.07 to $74.56 a barrel by 1137 GMT, declining for the fourth straight session and extending the 10 per cent slide of the second quarter, the first quarterly drop since 2008.
ICE Brent fell $1.17 to $73.84.
The China data, and Moody’s decision on Wednesday to put Spain’s credit ratings under review, got broader markets off to a weak start for the new quarter.
European equities fell one per cent, Japanese stocks slid to a seven-month low and China’s to a 15-month trough.
China’s official purchasing managers’ index (PMI) fell to a weaker-than-expected 52.1 in June, the lowest since February, from 53.9 in May.
The indicator remained above the 50 threshold that indicates an expansion.
Adding to negative sentiment on demand, US gasoline stockpiles posted surprise gains last week, government statistics showed, raising doubts about the speed of consumption recovery in the world’s top consumer.
Crude stockpiles fell two million barrels in the week to June 25, compared with expectations for a decline of 900,000 barrels.
Cushing, Oklahoma, crude supplies shed 795,000 barrels to 36 million barrels.
The recent slip from record high storage at the Cushing hub has helped narrow the price spread between the front-month and near-month US crude contracts.
The spread narrowed to 55 cents, from $1.27, which could signal an improvement in near-term demand.
Traders were also looking to the nation’s weekly jobless claims later and June’s employment report on Friday for further indications about the direction of the economy in the world’s largest fuel consumer.
Hurricane Alex drenched the Texas-Mexico border on Thursday as the powerful storm hit Mexico’s Gulf coast, spawning tornadoes and flooding towns, but it spared US oil wells.
Oil & Energy
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Oil & Energy
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By Felicity Bradstock for Oilprice.com 16
Oil & Energy
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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