Market News
Oil prices rise $3 after China suspends fuel exports - REUTERS
The foreign exchange market in Nigeria recorded a notable increase in activity in the week ended 25 September 2026, driven by stronger trading across both spot and derivatives markets.
According to market data released by FMDQ Group Plc, total turnover across the FX Spot and Derivatives markets reached $2.63 billion, representing an 11.02% increase, or an additional $260.85 million, from the $2.37 billion recorded in the previous week ended 18 September.
The weekly increase marked a rebound in the official FX market following a sharp 30% contraction in the previous week, when total turnover fell from nearly $3.4 billion to $2.37 billion because of temporary weakness in derivatives activity.
Over the past two years, FX activity on the FMDQ Exchange platform has expanded significantly following structural reforms initiated by the Central Bank of Nigeria. These include the adoption of a market-driven “willing buyer, willing seller” system, order-based quotation platforms and the clearance of legacy FX backlogs.
The reforms have helped improve liquidity, support diaspora remittance flows and enable commercial banks and their corporate clients to execute larger transactions without relying heavily on direct central bank intervention.
FX Spot
The increase in weekly turnover was largely driven by the FX Spot market, which continues to account for the vast majority of official foreign exchange trading.
Spot transactions rose 10.62% week-on-week, increasing by $248.42 million to $2.59 billion, compared with $2.34 billion in the week ended 18 September.
Daily average spot turnover increased from $467.90 million to $517.59 million, with spot transactions accounting for 98.51>#/strong### of total FX market activity.
FX Derivatives
The FX Derivatives segment, comprising FX forwards, also recorded a significant proportional increase following a slowdown earlier in the month.
Derivatives turnover jumped 46.42>#/strong###, rising from $26.78 million to $39.21 million during the week.
The $12.43 million weekly increase lifted average daily derivatives turnover from $5.36 million to $7.84 million.
Derivatives' share of overall FX market activity increased from 1.13% to 1.49>#/strong###.
Overall FX Activity
Average daily trading volume across the entire FX market climbed from $473.26 million to $525.43 million.
The combined figures indicate heightened liquidity and renewed engagement between authorised dealer banks and their clients across both immediate and forward settlement markets.
Oil Prices Jump as China Restricts Fuel Exports
NEW YORK, Oct. 1 (Reuters) — Oil prices jumped more than $3 a barrel on Thursday after China suspended exports of oil products, potentially tightening fuel markets already facing global supply shortages. Few signs also emerged that diplomatic efforts to end the U.S.-Israeli war on Iran were having an effect.
By Siddharth Cavale
The new front-month December Brent crude futures contract was trading at $101.20 per barrel at 12:47 p.m. EDT (1647 GMT), up 3.2%, or $3.17, from Wednesday's close.
The November Brent contract expired on Wednesday at $103.50 a barrel, recording a monthly gain of around 14% in September.
U.S. West Texas Intermediate (WTI) crude futures rose $1.58, or 1.8%, to $92 a barrel, after trading close to $93 earlier in the session.
Oil prices were volatile, having fallen more than 1% in early trading before recovering.
China Restricts Oil Product Exports
Chinese refiners have suspended exports of oil products to regions outside Hong Kong and Macau until further notice, four people briefed on the matter told Reuters.
The move is expected to further tighten fuel markets already affected by war-related supply disruptions.
“The Chinese export ban suggests concerns about domestic product availability,” UBS analyst Giovanni Staunovo said, adding that it remained uncertain whether the restrictions would encourage higher crude imports following recent drawdowns in Chinese crude and fuel inventories.
Refined Product Shortages
Although crude supplies continue to reach the market, diesel and other refined products remain in short supply following damage to refinery infrastructure in the Gulf and Russia.
Gasoline, jet fuel and diesel shipments from the region remain at around half of pre-war levels, according to Phil Flynn, senior market analyst at Price Futures Group.
Global diesel inventories were already tight after Russia, a major diesel exporter, banned exports through October. Industry participants said the shortages were unlikely to end before next year.
“The impact of China's fuel export restrictions will not be as large as the loss of Russian and Middle Eastern refined oil product exports. However, it is another source of stress on global fuel markets when supply is severely constrained,” said Hamad Hussain, senior climate and commodities economist at Capital Economics.
Possible Diesel Stockpile Release
Brent and WTI futures pared some of their gains after two EU diplomats told Reuters that the European Union's energy task force would meet on Friday to discuss a possible release of diesel stockpiles.
Earlier on Thursday, sources told Reuters that the Trump administration had asked Germany and France to draw down emergency diesel inventories to help ease global fuel prices, or potentially face a U.S. ban on diesel exports.
