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Asia shares rise to two week highs over Crimea crisis and Upbeat U.S. data

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TOKYO – Wednesday saw Asian shares raced to two week high over the disturbing concerns over the Ukraine/Crimea crisis and the upbeat U.S. data.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.1 percent to its highest level since March 11, while Japan’s Nikkei .N225 ticked up 0.3 percent.

European shares are expected to follow suit, with both Germany’s DAX .GDAX and France’s CAC .FCHI seen rising 0.4 percent.

U.S. consumer confidence rose more than expected in March, to its highest level since January 2008 and U.S. house prices increased solidly in January.

The two reports were the latest in a string of positive reads on the U.S. economy, adding more credence to the view that softness earlier this year was related to bad weather and not inherent economic weakness.

The upbeat data helped Wall Street shares rebound after a two-day decline, with the Standard & Poor’s 500 Index .SPX gaining 0.4 percent.

Risk appetite also got a lift from perceptions that geopolitical tensions over Ukraine are easing after a meeting of Western leaders ended with little more than fist-shaking at Russia.

U.S. President Barack Obama and his allies agreed to hold off on more damaging economic sanctions unless Moscow goes beyond the seizure of Crimea.

The news that Moscow’s and Kiev’s foreign ministers had held an impromptu first meeting also led investors to believe the crisis triggered by Russia’s annexation of Crimea is not heading into a wider armed conflict.

“The markets were worried that Russia might invade the southern or eastern part of Ukraine after Crimea. But the chances of that happening seems to be slim now, reducing investors’ risk aversion,” said Kyosuke Suzuki, director of forex at Societe Generale.

Investor relief was palpable in Russia, where the ruble firmed to pre-Crimea crisis levels.

The ruble rose about 1.5 percent on Tuesday against the dollar-euro basket, its biggest gain in 1-1/2 years, to 41.68 to the basket, hitting a one-month high.

The MSCI emerging equities index .MSCIEF also rose to a two-week high, with Brazilian shares .BVSP tapping five-week highs despite a downgrade of Brazil’s credit rating by U.S. rating firm Standard & Poor’s.

Indian shares .BSESN hit a record high and the rupee also rose to an eight-month high on hopes of more foreign investment inflows.

Hopes that Beijing will take steps to bolster its sagging economy underpinned Chinese shares and many markets leveraged to the Asian giant. Brazil and Australia were among the beneficiaries, as well as a host of commodities.

Following a recent run of disappointing Chinese data this year, many economists now expect China’s growth to fall short of the government’s target of 7.5 percent this year in the absence of effective support measures.

“Investors are betting on stimulus because Chinese authorities have done everything they could to achieve the target in the past,” said Sho Aoyama, senior market analyst at Mizuho Securities.

Mainland Chinese shares .SSEC dipped slightly but still held not far from one-month high, even as rumor of insolvency led to a run on small banks amid growing anxiety about potential insolvencies in China as regulators signal greater tolerance for credit defaults.

London copper futures rose to a two-week high of $6,623.75 per tonne on Tuesday, while commodities that had been battered earlier this month — including iron ore and steel — also rebounded from their lows.

The Australian dollar hit four-month high of $0.9200. Other major currencies were stuck in well-worn ranges, with the euro fetching $1.3816 and the yen changing hands at 102.32 yen to the dollar.

Meanwhile, precious metals lost some of their allure as concerns over Ukraine eased and as U.S. short-term rates have risen.

Gold hit a five-week low of $1,305.59 per ounce on Tuesday and last stood at $1,313.20 while silver dropped to seven-week low of $19.78 per ounce.

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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