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Crude Prices Drop After Angola Quits OPEC

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Crude prices slumped on Thursday after Angola quit the OPEC oil cartel, while Wall Street stocks rebounded after a streak of records was snapped.

The price of the main international and US crude contracts dropped more than 1.5 percent after Angola said it was leaving as it did not want to go along with further production cuts that OPEC and 10 Russian-led allies agreed on last month.

They later pared their losses.

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In an effort to prop up prices, the OPEC+ alliance has implemented supply cuts of more than five million barrels per day (bpd) since the end of 2022.

But oil prices still slid to their lowest levels in nearly six months following the latest OPEC+ decision. The United States has been pumping at record rates, as have Brazil and Guyana, while the weak global economy has raised concerns about demand.

READ ALSO: Edo: Two Refineries Take Delivery Of 75,500 Barrels Of Crude

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ActivTrades analyst Ricardo Evangelista said the departure of Angola, a relatively small producer at 1.1 million barrel per day, would hurt OPEC less than if it had been a big producer such as Iraq.

But the timing could not be worse “when the cartel is working hard to convince its members to voluntarily reduce production in order to support prices”, Evangelista said.

Wall Street’s three main indices jumped at the start of trading, having tumbled on Wednesday and breaking the Dow’s streak of five straight record closes as a spate of profit-taking swept trading floors.

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The blue-chip Dow stood 0.7 percent higher in late morning trading, while the broader S&P 500 rose 0.8 percent and the tech-heavy Nasdaq climbed 0.9 percent.

READ ALSO: Port Harcourt Refinery Begins Operations – FG

The rebound “suggests yesterday’s sell-off was the result more of esoteric trading behavior than everyone, en masse, suddenly agreeing that they should take some money off the table”, said Briefing.com analyst Patrick O’Hare.

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US equities have driven higher since late October, following a nearly unbroken path as inflation moderated and the Federal Reserve flagged plans for 2024 interest rate cuts.

A stream of US data in recent weeks has shown inflation continues to slow and the jobs market is softening. Other economic indicators suggest the US central bank is on course to bring prices under control while averting a recession.

Data on Thursday showed first-time claims for jobless benefits held steady last week at a level far below that would indicate an impending recession.

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READ ALSO: How To Meet Rich, High-profile Men This December – Toke Makinwa Gives Tips

The most recent Fed gathering ended with officials indicating they would cut about three times in 2024, sparking a buying frenzy in markets and forcing some policymakers to try to temper expectations.

Eyes are now on Friday’s upcoming release of the personal consumption expenditures (PCE) price index, the Fed’s preferred gauge of inflation, which could be key for its next meeting in January.

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“A higher-than-expected core US inflation reading tomorrow could tip us back into fretting about rates being higher for longer,” said AJ Bell investment director Russ Mould.

European indices ended the day lower.

Asian indices struck a mixed note although Tokyo tumbled on troubling news from Japanese carmaker Toyota, whose share price tanked.

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READ ALSO: VIDEO: Kidnapped Abuja Musician, Band Regain Freedom

Tokyo shares slumped after the company announced a recall of a million vehicles, and its subsidiary Daihatsu decided to suspend shipments of all models over rigged safety tests.

Key figures around 1630 GMT
West Texas Intermediate: DOWN 0.6 percent at $73.78 per barrel

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Brent North Sea crude: DOWN 0.5 percent at $79.29 per barrel

New York – Dow: UP 0.7 percent at 37,325.53 points

London – FTSE 100: DOWN 0.3 percent at 7,694.73 (close)

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Paris – CAC 40: DOWN 0.2 percent at 7,571.40 (close)

Frankfurt – DAX: DOWN 0.3 percent at 16,687.42 (close)

EURO STOXX 50: DOWN 0.2 percent at 4,524.86 (close)

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Tokyo – Nikkei 225: DOWN 1.6 percent at 33,140.47 (close)

Hong Kong – Hang Seng Index: FLAT at 16,621.13 (close)

Shanghai – Composite: UP 0.6 percent at 2,918.71 (close)

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Euro/dollar: UP at $1.0994 from $1.0942 on Wednesday

Dollar/yen: DOWN at 142.11 yen from 143.57 yen

Pound/dollar: UP at $1.2664 from $1.2639

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Euro/pound: UP at 86.81 pence from 86.57 pence

AFP

 

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Fixed Income: CBN Announces Fresh Regulations To Control Nigerian Market

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The Central Bank of Nigeria has announced sweeping regulations to take control of the Nigerian fixed income market.

The regulations expected to begin in November are aimed at boosting transparency across Nigeria’s financial sector.
The apex bank disclosed this in a recent statement.

CBN noted that the intervention is a key part of broader financial market reforms.

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READ ALSO:CBN Establishes New Unit To Tackle Financial Crime

Accordingly, it said its core objective is to enhance regulatory oversight and strengthen the market’s ability to effectively support the transmission of monetary policy and, ultimately, foster economic growth.

This transition will enable the CBN to assume direct responsibility for the management of the trading platform and handle end-to-end settlement activities under the bank’s established settlement system for financial market transactions,” the statement read.

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According to DAILY POST, Fixed income securities refer to investments which provide a return in the form of fixed periodic interest payments and the eventual return of the principal at maturity.

 

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Confusion Over Euro-Africa CCI’s $250m Investment In Edo

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The $250m investment deal Governor Monday Okpebholo claimed to have secured during his recent trip to Scotland is generating ripples over capacity of the European African Chamber of Commerce and Industry (EACCI) to make such a huge investment.

The EACCI, headed by a Drector General, Dr. Kingsley Obasohan, is not known to have made any prior investment in Edo State or any part of the country.

Obasohan, who attended the Edo State Global Investment Summit virtually, announced the $250m investment.

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He said the investment would be made for a period of three years.

An online search was launched to unravel the EACCI as well as the man Obasohan.

READ ALSO:Okpebholo Warns Companies Against Fuelling Edo–Delta Boundary Dispute

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A number on the site was answered by a lady who claimed not to understand English language.

Several foreign partners were listed on the site as board members and advisory council.

Some closed associates of Obasohan said he would have to get clearance from the Board members before talking to journalists on the issue.

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Spokesman for the Edo Peoples Democratic Party, Daniel Noah Osa-Ogbegi, said the party would hold Governor Okpebholo accountable to Edo people and demanded clarity on the $250m investment from Glasgow.

Osa-Ogbegi said the proposed investment has become a source of embarrassment to Edo people because of unfolding information about EACCI.

READ ALSO:JUST IN: Okpebholo Nominates Another 5 Persons As Commissioner-designates

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He said the party would shine light on fiscal management practices that appeared to ignore transparency and responsibility.

Secretary to the State Government (SSG), Umar Musa Ikhilo, had earlier said those that attended the Glasgow summit were interested in keying into the SHINE agenda of Governor Okpebholo.

One of the chambers of commerce that attended, the European African Chamber of Commerce and Industry signed an MoU with the Edo State Government to invest a sum of $250 million over the next three to five years.

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“Last year, diaspora remittances were the second-highest source of foreign income in Nigeria after crude oil, over $20 billion, but only 2% of that went into investment. We are creating a vehicle to help convert more of that into direct investments.”

He added that a delegation from Scotland was expected to visit Edo State in the coming months to explore specific investment projects as a follow-up to the summit.

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Dangote Hits Out At PENGASSAN, Says Union ‘Serial Saboteurs, Serving Oligarchs’

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The management of Dangote Petroleum Refinery has berated the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), accusing the union of decades-long sabotage of Nigeria’s oil and gas sector and serving the interests of its leaders rather than ordinary Nigerians.

In a statement issued at the weekend, the refinery described PENGASSAN’s latest directive to cut crude oil and gas supplies to the facility as another act of economic sabotage designed to inflict untold hardship on Nigerians.

“Indeed, over time, the Association has consistently proved itself as serving interests other than those of Nigerians and Nigerian workers,” the statement declared.

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Dangote recalled that in 2007, when the Federal Government sold its moribund Port Harcourt and Kaduna refineries to Blue Star Consortium, led by the Dangote Group, for $750 million, it was PENGASSAN and its ally, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), that sabotaged the deal. “It is now obvious to everyone that the FGN’s decision at the time was the right one and that PENGASSAN and NUPENG ignominiously wrote their names on the wrong pages of history,” the company said.

READ ALSO:Dangote Fuel Sells Cheaper In Togo Than In Nigeria – Falana Laments

The refinery also faulted the union’s role in the much-publicised rehabilitation of the Port Harcourt Refinery, describing it as a “ruse” which PENGASSAN “knowingly celebrated despite being a scam on Nigerians.” The statement further accused the union of opposing amendments to the Petroleum Industry Act (PIA) that would have freed up federal liquidity and attracted private-sector funding into Nigeria’s upstream oil ventures.

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Beyond policy obstruction, Dangote Refinery accused the association of mismanaging billions of naira in annual check-off dues to allegedly bankroll the “lavish lifestyles” of its leaders, without accountability to members. By contrast, the refinery highlighted its own record of economic contributions within a short period, citing road construction, worker training, the creation of thousands of Nigerian jobs, and a compensation structure that “outdistances the best in the Nigerian oil and gas industry.”

“The Dangote Group is the highest employer of labor in Nigeria and the highest contributor to the tax revenues of Nigeria and its sub-nationals. What comparable social responsibility has PENGASSAN, with its billions of Naira in annual check-off dues and subscriptions, lived up to?” the statement queried, challenging the union to publish its audited accounts for the past ten years. “Can it publish publicly its account for the last 10 years and list out its corporate responsibility activities within that timeframe?”

READ ALSO:Dangote Refinery Reduces Fuel Price Nationwide, Provides Update On Petrol Distribution

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The refinery insisted that PENGASSAN’s recent directive to withdraw services and cut off essential fuel supplies, including but not limited to petrol, diesel, kerosene, cooking gas and aviation fuel was reckless, lawless and dangerous. It said the order is not about protecting Nigerian workers, but it is about a cabal of oligarchs weaponising hardship against over 230 million Nigerians.

In the process, it (PENGASSAN) cares little if at all about the unbearable hardship and terror it would thereby inflict on all Nigerians, including but not limited to the provision of essential services in our hospitals and medical facilities, schools (nursery and right up to tertiary and research institutions), emergency services, communications facilities, transportation systems, etc,” it said.

Dangote Refinery called on the Federal Government and security agencies to step in immediately to protect the facility and the nation’s energy security, stressing that the union must not be allowed to “bully Nigerians into chaos and economic sabotage.”

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According to Tribune Online, the federal government has announced readiness to broker peace between Dangote Refinery and PENGASSAN, inviting both to a meeting scheduled for Monday.

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