Market News

Oil Prices Took a Hit as Naira Converged Below N400 to a Dollar - PROSHARE

APRIL 21, 2017

GET INSTANT UPDATES WITH  abokiFX  APP LINKS BELOW

https://play.google.com/store/apps/details?id=com.app.Abokifx&hl=en

https://itunes.apple.com/us/app/abokifx/id1205477397?mt=8

The naira has converged below N400/$ for the second time this year as the CBN remains determined to achieve a unified exchange rate. At the parallel market, the naira is trading at N385/$ and could appreciate marginally in the days to come.

Oil prices took a hit as focus shifted towards the unexpected rise in gasoline stock in the US. OPEC is to meet on May 25th to discuss the extension of the output curb. If the exemption granted Nigeria is not extended, this could mean trouble for the gloating naira.

The attached/below report summarizes the commodity price movements for this week. 

Burning Economic Issues 

•Oil prices declined approximately 4% to $53.30pb

•CBN offers $100mn of 7- 45days forward contracts

•CBN intervenes with $280mn for invisibles

•External reserves up to $30.56bn, accretion rate slowing

•CWAY bottled water up 10% to N550

•Power supply down to 3712MW on April 18th, 5% lower than March’s peak of 3990MW

•Wholesale price of diesel flat at N200 per litre 

Economic News  

The Good   

  • Forex market converging below N400/$
  • Okomu and Presco outperform with profits up 85% and 773% respectively


The Bad

  •   Manufacturers and retailers still refusing to reduce prices
  •   Interest rates in the money market at unsustainable levels of 127% p.a.
  • Oil price of $53pb is 2.33% below Q1 levels
     

Power Generation analysis & Impact

April 18th: On grid power output was 3712MWh/hour (down 41MWh/h) 
 

• Total Power constraints: 2,239MW, attributed to gas

• Estimated loss: N1.074bn (annualised at N386.64bn /$0.96bn)

•Sapele I and Odukpani have restored turbines to functionality

•Nationwide average diesel price declined from 249/l in Feb to N235/l in Mar 
 



Domestic Commodity Prices Movement


  

 

 

Stock Market
 

 

GET INSTANT UPDATES WITH  abokiFX  APP LINKS BELOW

https://play.google.com/store/apps/details?id=com.app.Abokifx&hl=en

https://itunes.apple.com/us/app/abokifx/id1205477397?mt=8

 Oil prices  

 

• Brent crude down by 3.72% to $53.30pb

• Crude supplies declined by 1mb higher than API’s projected drawdown of 840,000 barrels

• Gasoline stockpiles edged up by 1.5mb, defying expectations for a 2 million decline

• The drawdown in crude inventory was ultimately suppressed by an unexpected buildup in gasoline

 

Oil markets today   

 

 

Outlook – Oil Prices

 • Oil prices may extend drop with US trends in focus 
• The EIA’s drilling productivity report projects an increase of 124,000bpd in May 
• The largest monthly increase since February 2015 
• OPEC extension of output curb still in view 
• Saudi Arabia’s energy minister reckons its too early to decide on extension of output curb  

Outlook – Agric Prices 

Grains   

  •  Losses will be limited by delays in planting in the United States

 

Soft

Sugar

  •  Weather conditions in South America to support price

Cocoa 

  • Supply-demand dynamics to weigh on prices

GET INSTANT UPDATES WITH  abokiFX  APP LINKS BELOW

https://play.google.com/store/apps/details?id=com.app.Abokifx&hl=en

https://itunes.apple.com/us/app/abokifx/id1205477397?mt=8

SEE HOW MUCH YOU GET IF YOU SELL

NGN
USD
GBP
EUR
Real Time Analytics