Sanctions and Tariffs Imperil Global Crude Oil Stability

<div class="post-content-wrap has-share-float"> <div class="post-content cf entry-content content-spacious"> <p> <strong> Lagos — </strong> Recently, crude oil prices have shown considerable fluctuation, hitting peaks not seen in more than a month as geopolitical strains intensify. President Donald Trump’s threats to attack Iran along with his sanctions against Russian crude oil have raised alarms across financial markets, pushing prices upwards. Brent crude surged into the territory of $75.20 per barrel but later corrected itself, whereas West Texas Intermediate (WTI) climbed to around $72.00 only to retract subsequently. Such price swings underscore how sensitive the market can be to political developments and their implications for worldwide crude supplies. </p> <p> A major driver behind this shift is the ongoing strife in the Middle East. The assaults carried out by Israel in Beirut along with the threat of reprisals from Iran have heightened regional volatility. Furthermore, proposed penalties aimed at curtailing Russian activities have garnered focus since the nation supplies about 7.4 million barrels per day, primarily to China and India. Should such measures be enforced, they might considerably alter the landscape of the oil trade. Moreover, disturbances within these crucial zones responsible for crude oil production may cause interruptions throughout the supply network. </p> <p> Conversely, Iran is exposed to the threat of fresh sanctions that might disrupt its daily export of 1.4 million barrels. Such an outcome adds volatility to worldwide crude oil supplies, sparking debates within energy trading circles. Nevertheless, the chance that these actions may alter global crude oil consumption caps upward movement in prices. Therefore, stakeholders closely monitor governmental choices as well as prospective diplomatic accords that have the potential to sway market stability. </p> <p> Economic instability significantly influences the stabilization of crude oil prices. The Trump administration has proposed implementing retaliatory tariffs, with some potentially reaching up to 50%. This move might hinder international commerce and lessen the demand for energy. Slower worldwide economic expansion would directly affect the use of crude oil, offsetting the price-boosting effects brought about by political conflicts. Consequently, the trajectory of crude oil pricing will largely depend on how the global economy and trade regulations evolve. </p> <p> Moreover, OPEC+ intends to boost output by 135,000 barrels per day starting in May. Nonetheless, Kazakhstan might reduce its production because of the temporary shutdown of an export terminal. In contrast, United States crude stocks fell by 2.1 million barrels at the end of March, indicating heightened near-term consumption. Even with these changes, the equilibrium between supply and demand continues to be precarious and will hinge on various political and economic conditions over the next few months. </p> <p> In conclusion, analysts point out that oil will remain under pressure in the coming weeks due to geopolitical uncertainty and the potential economic effects of new trade policies. While international conflicts may trigger price spikes, the possible slowdown in the global economy could limit their rise, creating a highly volatile oil market susceptible to sudden changes. In this scenario, investors and producers must assess strategies to mitigate risks and adapt to a constantly fluctuating market.” </p> <p> Analysis provided by Antonio Di Giacomo, a financial markets analyst specializing in LATAM for XSkiego </p> </div> </div> Provided by Syndigate Media Inc. ( Syndigate.info ).

Sanctions and Tariffs Imperil Global Crude Oil Stability

Unknown

Lagos — Recently, crude oil prices have shown considerable fluctuation, hitting peaks not seen in more than a month as geopolitical strains intensify. President Donald Trump’s thr…

Read more »

Paradox of Progress: Mele Kyari's Tenure at NNPC During Reform and Stagnation (International Edition)

<div class="post-content-wrap has-share-float"> <div class="post-content cf entry-content content-spacious"> <p> <strong> Hector Igbikiowubo </strong> </p> <p> <strong> Lagos — </strong> President Bola Ahmed Tinubu’s move to dismiss the board of NNPC Ltd and designate Bayo Ojulari as the new Group CEO signals the conclusion of Mallam Mele Kyari’s tenure, which was marked by both progress and standstill. This shift represents a new chapter following Kyari's ambiguous period of transformation and inertia. </p> <p> In July 2019, Mele Kyari, who previously served as the Group General Manager for Crude Oil Marketing at NNPC and holds a degree in geology, was selected as the Group Managing Director by ex-President Muhammadu Buhari. Following the enactment of the Petroleum Industry Act (PIA) 2021, his leadership witnessed NNPC evolving from a government-operated entity into a profit-oriented limited liability firm. During this period, he also advanced to hold the title of Group CEO post-incorporation. </p> <p> <strong> Key Highlights of Kyari’s Leadership </strong> </p> <p> <strong> Enactment of the Petroleum Industry Act (PIA) 2021 </strong> </p> <p> Kyari managed the transformation of NNPC into NNPC Ltd., a business-focused organization, as required by the PIA. The objective was to enhance transparency and encourage private capital involvement. </p> <p> <strong> Enhanced Oil Output (Occasionally) </strong> </p> <p> During Kyari’s tenure, Nigeria experienced phases of enhanced oil output, with daily production surpassing 1.8 million barrels per day (bpd) at the beginning of 2020. However, this rise was followed by a significant drop because of oil theft and sabotage of pipelines. </p> <p> <strong> Dangote refinery agreement along with modular refineries drive </strong> </p> <p> Kyari struck a deal for crude supplies with the Dangote Refinery, aiming to decrease Nigeria’s reliance on imported fuels. Additionally, he backed small-scale refinery initiatives to enhance domestic refining capabilities. </p> <p> <strong> Nigeria-Morocco Gas Pipeline Project </strong> </p> <p> The NNPC, led by Kyari, has progressed with talks regarding the $25 billion Nigeria-Morocco Gas Pipeline project, an ambitious initiative designed to enhance gas shipments to Europe. </p> <p> <strong> Automation and Transparency Measures </strong> </p> <p> Kyari implemented digital monitoring systems to combat crude oil theft and released the first-ever audited financial statements of the NNPC for the years 2018 through 2020. However, skeptics raised doubts about the thoroughness of these reports. </p> <p> <strong> Low Points and Controversies </strong> </p> <p> <strong> No Transfers to Federation Account (2020-2022) </strong> </p> <p> For many years, NNPC did not transfer revenues to the Federation Account because of deductions related to petroleum subsidies and operating expenses. In 2022, the corporation announced no revenue transfers were made, which caused significant anger among state governments and the federal authorities. </p> <p> <strong> Petroleum Subsidy Mismanagement </strong> </p> <p> Under Kyari, subsidy disbursements increased dramatically from ₦154 billion in 2019 to more than ₦4 trillion in 2022, depleting government resources. The NNPC’s exclusive management of these subsidies was opaque, resulting in claims of corruption and ineffectiveness. </p> <p> <strong> Large-Scale Fuel Theft and Falling Output </strong> </p> <p> In spite of Kyari’s endeavors, crude oil theft escalated to record-breaking heights, causing Nigeria to lose approximately 400,000 barrels per day at its zenith in 2022. Consequently, this resulted in a decline in production down to as little as 900,000 barrels per day, significantly affecting revenues. </p> <p> <strong> Debated Oil Drilling Ventures in the Northern Regions </strong> </p> <p> Kyari advocated for oil drilling activities in the northern region, with special emphasis on the Kolmani River initiative. This proposal was largely viewed as politically motivated rather than driven by economic feasibility because of the limited confirmed reserves. </p> <p> <strong> Fuel Shortage and Reliance on Imports </strong> </p> <p> Even though Nigeria is Africa's leading oil producer, the country experienced ongoing fuel shortages during Kyari’s tenure because of the NNPC's control over imports and issues within the distribution system. </p> <p> <strong> Suspicious Inspections and Incomplete Openness </strong> </p> <p> Although Kyari attempted to disclose NNPC’s financial records, audits uncovered significant deficits (₦803 billion in 2018 and ₦1.7 trillion in 2019), sparking worries about the company’s financial prudence. </p> <p> <strong> Unsuccessful Overhaul of NNPC Refineries Despite Significant Investment </strong> </p> <p> One of the most contentious issues during Mele Kyari’s term was the **ineffective revitalization of Nigeria’s government-run refineries**, namely those in Port Harcourt, Warri, and Kaduna, despite substantial financial investments running into billions of dollars. </p> <p> <strong> $1.5 Billion Allocated for Rehabilitating Port Harcourt Refinery (2021) </strong> </p> <p> In 2021, Kyari disclosed that the federal government had sanctioned $1.5 billion for revamping the Port Harcourt refinery, aiming to finish by 2023. Nevertheless, come 2024, the facility still isn’t operational, with ongoing postponements attributed to "technical problems." </p> <p> <strong> Warri and Kaduna refineries are also shut down: </strong> </p> <p> Rehabilitation initiatives for the Warri ($1.2 billion) and Kaduna refineries were also unveiled, yet they failed to produce tangible outcomes. Consequently, Nigeria persisted with costly fuel imports, which burdened the country with substantial subsidy expenses. </p> <p> <strong> Refinery Non-Operational for Five Years: </strong> </p> <p> Even with Kyari’s reassurances, none of the refineries restarted operations during his tenure, which sparked doubts regarding fund management and the authenticity of the restructuring efforts. </p> <p> <strong> NNPC’s Decreasing Stake in Dangote Refinery </strong> </p> <p> In 2021, the NNPC declared that it had obtained a 20% share in the $19 billion Dangote Refinery, which is Africa’s biggest refinery, as part of a strategy to ensure a stable domestic fuel supply. Nonetheless, disputes quickly arose over this development. </p> <p> <strong> Real Stakes Apparently Less Than Advertised: </strong> </p> <p> The investigation found that NNPC’s real financial input was significantly lower than the anticipated $2.76 billion (which represents 20% of $19 billion). In reality, NNPC paid merely for 7.2%, equivalent to $1 billion, along with an extra $36 million in expenses. These payments were facilitated via a $1.036 billion loan obtained from Lekon Refinery Funding Limited. </p> <p> <strong> Is Debt Financing Preferable to Direct Investment? </strong> </p> <p> Certain reports indicated that NNPC’s "investment" was set up as an oil-backed loan instead of a direct equity acquisition. This implies that Nigeria could still face potential repayment risks rather than gaining complete access to profits. </p> <p> <strong> Crude Supply Dispute: Can NNPC Ensure Reliable Feeding of Dangote Refinery? </strong> </p> <p> The Dangote Refinery was designed to run on Nigerian crude, but NNPC’s ability to supply feedstock has been questioned due to: </p> <p> <strong> Nigeria’s Declining Oil Production: </strong> </p> <p> As crude production has dropped beneath 1.4 million barrels per day (falling well short of the OPEC target), there are worries that NNPC might find it difficult to fulfill both its delivery commitments to the Dangote Refinery and its export agreements simultaneously. </p> <p> <strong> Subsidies Debt and Crude-for-Fuel Barter Agreements: </strong> </p> <p> The current crude swap deals of NNPC (such as the Direct Sale, Direct Purchase, DSDP arrangement) might clash with providing crude oil to The Dangote Refinery, which could result in potential fuel supply interruptions should priority issues arise. </p> <p> <strong> Allegations of Favoritism: </strong> </p> <p> Critics argue that NNPC’s deal with Dangote Refinery disproportionately benefits a private entity while failing to revive Nigeria’s own refineries, raising questions about fairness and national interest. </p> <p> <strong> A Mixed Legacy </strong> </p> <p> During Mele Kyari’s term, the Nigerian National Petroleum Corporation (NNPC) experienced both progress and setbacks. He revamped the company’s organizational framework and launched significant initiatives; however, his time as leader was marred by unclear practices related to fuel subsidies, decreasing crude production levels, and financial losses. The decision to replace him reflects President Tinubu’s intention to steer the country’s petroleum industry towards fresh reforms, entrusting Bayo Ojulari with the mission to tackle these persistent issues. </p> <p> Although Kyari advocated for corporate reform within the PIA, his failure to rehabilitate refineries and guarantee transparency in agreements such as Dangote’s casts doubt on his legacy. His replacement, Bayo Ojulari, will have to tackle these outstanding problems to rebuild trust in Nigeria’s petroleum industry. </p> <p> The incoming NNPC CEO should focus on enhancing transparency, combating fuel theft, and maintaining profitability to align with the firm's commercially oriented standing. Kyari’s tenure will be noted for his significant changes as well as the ongoing challenges that remained during his leadership. </p> </div> </div> Provided by SyndiGate Media Inc. Syndigate.info ).

Paradox of Progress: Mele Kyari's Tenure at NNPC During Reform and Stagnation (International Edition)

Unknown

Hector Igbikiowubo Lagos — President Bola Ahmed Tinubu’s move to dismiss the board of NNPC Ltd and designate Bayo Ojulari as the new Group CEO signals the conclu…

Read more »

Les États-Unis imposent des sanctions à des entités chinoises pour l’achat de pétrole iranien

<img data-document-id="cms/api/amp/image/AA1zOw5Q" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1zOw5Q.jpg"/> <h2> Principaux renseignements </h2> <ul class="wp-block-list"> <li> <strong> Le Département d’Etat américain prend des mesures contre des entités impliquées dans l’achat et le transport de pétrole iranien. </strong> </li> <li> <strong> La société Shandong Shouguang Luqing Petrochemical Co. a été ciblée pour avoir acheté et raffiné des centaines de millions de dollars de pétrole brut iranien. </strong> </li> <li> <strong> D’autres sanctions sont imposées à 12 entités et à une personne impliquées dans l’expédition de millions de barils de pétrole iranien vers la Chine. </strong> </li> </ul> <p> Le terminal pétrolier Huaying Huizhou Daya Bay Petrochemical Terminal Storage en Chine a été sanctionné par les États-Unis pour avoir acheté et stocké du pétrole brut provenant d’un navire sanctionné. </p> <p> Simultanément, le Département américain du Trésor cible Shandong Shouguang Luqing Petrochemical Co, Ltd, une raffinerie chinoise privée, pour avoir acheté et raffiné des centaines de millions de dollars de pétrole brut iranien. Il s’agit notamment de pétrole provenant de navires liés à Ansarallah (Houthis), désignée comme organisation terroriste étrangère, et au ministère iranien de la défense et de la logistique des forces armées, désigné par les États-Unis. C’est la première fois qu’une raffinerie de type privé est sanctionnée par les États-Unis. </p> <h2 class="wp-block-heading" id="h-plus-de-sanctions-imposees"> Plus de sanctions imposées </h2> <p> Des sanctions supplémentaires sont imposées à 12 entités et à une personne physique impliquées dans l’expédition de millions de barils de pétrole iranien vers la Chine. Huit navires ont également été identifiés comme des biens bloqués en raison de leur rôle dans le transport de ce pétrole, y compris les expéditions vers Luqing Petrochemical. Ces navires appartiennent à la « flotte fantôme » de pétroliers iraniens qui approvisionnent les raffineries de type privé. </p> <p> Ces actions s’inscrivent dans la stratégie de pression maximale du président Trump visant à réduire à zéro les exportations de pétrole iranien, en particulier celles destinées à la Chine. La Chine est le plus grand importateur de pétrole iranien, les revenus de ces ventes étant utilisés par le régime iranien pour financer des attaques contre les alliés des États-Unis, soutenir le terrorisme mondial et s’engager dans des activités déstabilisatrices. </p> <h2 class="wp-block-heading" id="h-les-etats-unis-veulent-continuer-a-imposer-des-sanctions"> Les États-Unis veulent continuer à imposer des sanctions </h2> <p> L’administration Trump appliquera rigoureusement ces sanctions dans le cadre de son engagement à tenir l’Iran et ses partenaires qui se soustraient aux sanctions responsables de leurs actes. Tant que l’Iran cherchera à obtenir des revenus pétroliers pour financer ces activités perturbatrices, les États-Unis continueront à prendre des mesures décisives. </p> <p> Si vous souhaitez accéder à tous les articles, abonnez-vous ici! </p>

Les États-Unis imposent des sanctions à des entités chinoises pour l’achat de pétrole iranien

Unknown

Principaux renseignements Le Département d’Etat américain prend des mesures contre des entités impliquées dans l’achat et le transport de pétrole iranien. La société Shandong Sh…

Read more »