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Nigeria, Africa’s biggest oil producer, dogged by fuel shortages

The man in the large SUV forces his way to the front of the line at the gas station, ignoring the blaring horns and threats of fisticuffs from drivers who have slept in their cars and waited for more than 12 hours for the scarce fuel. Raw anger and frayed tempers give way to resignation as the big man wins, waved in by fuel attendants, no doubt expecting a bribe. Nigeria, despite being Africa’s biggest petroleum producer, has been dogged by a fuel shortage for weeks. In this West African nation that does not only mean scarce gas to keep cars on the road. It means no diesel to run generators that are the lifeblood of industry in a country where frequent power cuts last hours. It means no kerosene for stoves used to cook meals by tens of millions of poor people. […]

Posted On : Published By : Tom Whipple
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Nigeria almost doubles GDP in recalculation

Nigeria overtook South Africa on Sunday to become Africa’s largest economy and 26th largest in the world after the government released updated figures that nearly doubled estimates for gross domestic product. As a result of the statistical revision, Nigerian GDP for 2013 was $509bn, 89 per cent larger than previously stated for last year. The change was made by bringing forward the base year for calculations to 2010 from 1990, when the structure of the economy was very different and services such as banking and telecoms had barely taken off. Companies ranging from Nestlé and Standard Bank to Heineken and MTB have already poured millions of dollars into Nigeria but foreign businessmen and analysts said the revision could serve as a catalyst for further investment. “The revision will have a psychological impact. It underlines to foreign investors that this country has a large consumer base. It validates the […]

Posted On : Published By : Tom Whipple
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U.S. Gasoline Prices Rise to Eight-Month High in Lundberg Survey

The average price for regular gasoline at U.S. pumps rose 4.9 cents in the past two weeks to $3.6065 a gallon, the highest since July 26, according to Lundberg Survey Inc. The survey covers the period ended April 4. It’s based on information obtained at about 2,500 filling stations by the Camarillo, California-based company. The average retail price is 4 cents lower than a year ago, Lundberg said. “In general, the uptrend has been losing steam,” Trilby Lundberg , the president of Lundberg Survey, said in a telephone interview yesterday. “This is a modest rise. Demand is higher than it was during the same period one year ago.” Implied demand for gasoline fell 3.5 percent in the week ended March 28, remaining 0.8 percent above the five-year seasonal average , data from the Energy Department show. The highest price for gasoline in the lower 48 U.S. states among the […]

Posted On : Published By : Tom Whipple
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Fracking and earthquakes: Scientists link rise in seismic activity in Oklahoma to increased oil and gas exploration

Between 1975 and 2008, Oklahoma recorded an average of no more than six earthquakes per year, yet now it is the second most seismically active of the contiguous United States, beaten only by California. Scientists have linked this surge in seismic activity to a parallel increase in oil and gas exploration, including fracking. In 2009, there were almost 50 quakes in Oklahoma. The following year, that number leapt to more than 1,000. Most were not “felt” earthquakes – those of magnitude 2.5 and above, which can be detected by humans. However, the state’s annual record of 222 felt quakes, set in 2013, has already been broken this year, with 253 so far. Seismologist Austin Holland of the Oklahoma Geological Survey told Reuters: “We have had almost as many magnitude 3 and greater already in 2014 than we did for all of 2013… We have already crushed last year’s record […]

Posted On : Published By : Tom Whipple
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Traders Encouraged by Job Growth That Could Boost Demand for Petroleum Products

U.S. oil prices climbed Friday as traders were encouraged by job growth in March that could boost demand for petroleum products, even though the data slightly missed expectations. Light, sweet crude for May delivery rose 85 cents, or 0.8%, to $101.14 a barrel on the New York Mercantile Exchange. Brent crude on ICE Futures Europe rose 57 cents, or 0.5%, to $106.72 a barrel. The Labor Department said the U.S. added a seasonally adjusted 192,000 jobs in March, less than the gain of 200,000 projected by economists polled by The Wall Street Journal. Still, higher employment could indicate increased demand for petroleum products in the U.S., which is the top oil-consuming nation. "Demand is going to get bigger and better," said Carl Larry, president of research and consulting group Oil Outlooks & Opinions. "The more jobs that are created, the more demand will increase for oil." Meanwhile, some […]

Posted On : Published By : Tom Whipple
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WTI, Brent Crudes Gain as Payrolls Increase

West Texas Intermediate and Brent crudes rose for a second day after U.S. employers increased payrolls in March, signaling fuel consumption may climb in the world’s biggest oil-consuming country. Futures advanced 0.8 percent in New York, trimming a weekly decline. Payrolls grew 192,000 after a 197,000 gain in February that was larger than first estimated, Labor Department data showed today. The unemployment rate held at 6.7 percent. Brent also rallied as rebels continued to block exports from Libya ’s east as traders await a possible resumption. “This data shows that the U.S. economy is doing better, which bodes well for oil demand,” said Addison Armstrong , director of market research at Tradition Energy in Stamford, Connecticut . “We’re all keeping an eye on developments in Libya. If there’s a resolution and the oil starts to move, we could turn around and test the recent lows.” WTI for May delivery […]

Posted On : Published By : Tom Whipple
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Natural-Gas Prices Retreat on Split View of Production

Natural-gas futures slid Friday for the first time in three days, indicating the market remains divided on the ability of producers to replenish stockpiles that were depleted over a harsh winter. Natural gas for May delivery settled down 3.1 cents, or 0.7%, at $4.4390 a million British thermal units on the New York Mercantile Exchange. The price has dropped in four of the past six sessions. Teri Viswanath, an analyst at BNP Paribas, said the market is transitioning to the "shoulder season," where weather forecasts become less important and focus turns to the restocking of supplies. "One faction believes robust production growth will help the market move back into more comfortable equilibrium, though we actually think the market will remain understocked over the next two years," Ms. Viswanath said. Stockpiles have fallen to an 11-year low on the heels of a severe winter marked by […]

Posted On : Published By : Tom Whipple