Business

Oil Price Rises To $92.79 On Output Cut, May Hit $107

Published

2 years ago

September 11, 2023

The price of Nigeria’s Bonny Light, weekend, rose to $92.79 per barrel, from $90.88 per barrel, recorded last Tuesday as the impact of extended output cuts hit the market.

Russia extended its voluntary crude oil export cut by 300,000 barrels daily until December 2023, while Saudi Arabia extended its 1 million daily supply cut into October 2023 to boost price stability.

The price, which is the highest in 2023, showed an excess of $17.79 per barrel against the 2023 budget benchmark price of $75.

Meanwhile, Goldman Sachs Commodities Research, Saturday, predicted that oil supply cuts could lead to oil prices hitting $107 a barrel in 2024.

In an interview with Vanguard, an sector analyst, Prof. Omowumi Iledare, said Nigerians and others should expect prices to rise further, especially as oil inventories have reduced drastically in the United States.

Iledare who is the Executive Director of Emmanuel Egbogah Foundation, stated: “Certainly, rising crude price is expected even though it may not be exactly $100 per barrel in the short run for some reasons. First, it will continue to rise because demand is growing.

“Second, supply is declining because of geopolitics and inventory becoming low in the US. Interestingly too, reserves replacement is low, thus placing future supply at risk. Price, therefore will continue to inch up.”

Similarly, in another interview with Vanguard, the lead promoter, EnergyHub Nigeria, Prof. Felix Amieyeofori, said: “It is very possible that oil prices will cross the $100 per barrel level. First, the renewable sector is attracting more investment than oil globally. Some economies, including Saudi Arabia, have keyed into the global quest for a cleaner environment. Second, low investment, low production and export would continue to impact on the market in terms of price. Except, if something happens, we will likely witness a significant increase in price.”

He also pointed out that consumers would have to pay more for petrol as refiners; currently paying more for crude oil stands to transfer the cost in the form of high fuel prices.

Already, OPEC has identified Nigeria, as the least refining member with an average equivalent of 10,600 barrels per day, bpd in five years.

In its Annual Statistical Bulletin 2023, obtained by Vanguard, OPEC disclosed that the nation refined an equivalent of 33,000 bpd, 8,000 bpd, 1,000 bpd, 5,000 bpd and 6,000 bpd in 2018, 2019, 2020, 2021 and 2022, respectively.

On the other hand, Saudi Arabia emerged as the highest refining OPEC member with an average equivalent of 2.6 million barrels per day, mb/d, during the period.

Specifically, Saudi Arabia refined 2.8 mb/d, 2.6 mb/d, 2.3 mb/d, 2.5 mb/d and 2.9 mb/d in 2018, 2019, 2020, 2021 and 2022, respectively.

Checks by Financial Vanguard indicated that major and independent marketers have abandoned fuel importation, due mainly to market uncertainties.

But the lifting of fuel was ongoing at both Ijegun and Satellite Town depots in Lagos, even though many filling stations remained shut against motorists and other users of the product.

Business

NNPCL Announces Restoration Of Escravos-Lagos Pipeline

Published

3 days ago

December 30, 2025

Editor

The Nigerian National Petroleum Company Limited (NNPCL) has announced the complete restoration of the Escravos-Lagos Pipeline System (ELPS) in Warri, Delta State, following the recent explosion on the asset.

The chief corporate communications officer (CCCO) of the nation’s oil company, Andy Odeh, in a statement, said that the pipeline is fully operational, reiterating the company’s resilience and commitment to energy security.

“NNPC Limited is pleased to announce the successful restoration of the Escravos-Lagos Pipeline System (ELPS) in Warri, Delta State.

“Following the unexpected explosion on December 10, 2025, we immediately activated our emergency response, deployed coordinated containment measures, and worked tirelessly with multidisciplinary teams to ensure the damaged section was repaired, pressure-tested, and safely recommissioned.

“Today, the pipeline is fully operational, reaffirming our resilience and commitment to energy security. This achievement was made possible through the unwavering support of our host communities, the guidance of regulators, the vigilance of security agencies, and the dedication of our partners and staff.

“Together, we turned a challenging moment into a success story, restoring operations in record time while upholding the highest standards of safety and environmental stewardship.

“As we move forward, NNPC Limited remains steadfast in its pledge to protect our environment, safeguard our communities, and maintain the integrity and reliability of our assets. Thank you for your trust as we continue to power progress for Nigeria and beyond,” the statement read.

Business

Dangote Unveils 10-day Credit Facility For Petrol Station Owners

Published

3 days ago

December 30, 2025

Editor

The Dangote Group has announced a 10-day credit facility backed by a bank guarantee for petrol station owners and dealers, alongside free direct delivery and other incentives, as part of a new supply arrangement.

The company disclosed this in a statement posted on its official X handle on Tuesday, inviting petrol station operators across the country to register to benefit from the offer.

According to the statement, participating dealers will enjoy “a 10-day credit facility backed by a bank guarantee,” with a minimum order requirement of 5,000 litres.

“Our free direct delivery service will commence soon,” the group said, adding that the offer is open to “all petrol station owners and dealers.”

The Dangote Group further called on operators to register their stations to access the supply arrangement.

“Register your petrol stations today to benefit from our competitive gantry price,” the statement read.

The company also disclosed that petrol supplied under the arrangement will be sold at a gantry price of ₦699 per litre.

For enquiries, the group provided the following contact numbers: 0802-347-0470, 0809-324-7070, 0809-324-7071 and 0203.

The announcement follows a recent petrol price adjustment by the Dangote Petroleum Refinery.

The PUNCH earlier reported that the refinery reduced its ex-depot petrol price from ₦828 to ₦699 per litre, representing a ₦129 cut or a 15.58 per cent reduction.

An official of the refinery, who spoke to PUNCH Online on condition of anonymity, confirmed the adjustment, saying, “The refinery has reduced petrol gantry price to ₦699 per litre.”

The new price reportedly took effect on December 11, 2025, marking the 20th petrol price adjustment announced by the refinery this year.

Business

JUST IN: Otedola Sells Shares In Geregu Power For N1trn

Published

3 days ago

December 29, 2025

Editor

Billionaire businessman, Femi Otedola, has sold his majority stake in Geregu Power Plc for N1.088 trillion in a deal financed by a consortium of banks led by Zenith Bank Plc.

The Nigerian Exchange, NGX, made this announcement on Monday.

Otedola’s Amperion Power Distribution Company Ltd reportedly held nearly 80 percent of the power generating company.

With this new development, Otedola, Chairman of First Holdco Ltd, parent company of First Bank of Nigeria Plc, will reportedly now concentrate on expanding his interest in the Nigerian banking sector, although he still retains some shares in Geregu.

Otedola is said to currently own 17.01 percent of First Bank — its single largest shareholder since the bank was established in 1894.