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U.S. Stocks Inch Higher Ahead of Data

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NEW YORK – U.S. stock futures inched higher Thursday, as investors awaited data on retail sales and jobless claims.

About 90 minutes ahead of the open, Dow Jones Industrial Average futures ticked up nine points, or 0.1%, to 16864.S&P 500 index futures added one point, or 0.1%, to 1945 and Nasdaq-100 futures tacked on two points, or 0.1%, to 3800. Changes in stock futures don’t always accurately predict stock moves after the opening bell.

On Wednesday, the Dow dropped 102 points, or 0.6%, the biggest one-day point and percentage decline since May 20. The loss snapped a five-session win streak and a four-day stretch of record closes.

Traders said a combination of minor factors, rather than any one specific news item, prompted Wednesday’s selloff, and activity remained light. Overall volume of 5.15 billion shares on Wednesday was below the year-to-date daily average of 6.42 billion shares for the 18th-straight session.

On Thursday, increased violence in Iraq, which sparked a surge in crude-oil prices, was on investors’ radar after Kurdish forces took control of a provincial capital in the north.

Gail Dudack, chief investment strategist at Dudack Research Group, a division of brokerage firm Wellington Shields & Co., said that while there are geopolitical concerns, the stock market tends to focus more on “what will happen economically and financially,” such as employment and monetary policy, “and those things have been relatively positive and stable.”At 8:30 a.m. Eastern, retail sales for May are expected to increase 0.7% on the month, or by 0.4% when excluding auto sales. At the same time, initial claims of jobless benefits are seen slipping to 310,000 in the latest week from 312,000 the week before.

Also on tap, import prices for May are forecast to rise 0.2% on the month, while business inventories for April are expected to increase 0.4%.

The yield on the 10-year Treasury note ticked up to 2.652% after settling at a one-month high of 2.642% late Wednesday.

Crude-oil futures ran up 1.5% to $105.93 a barrel, a level not seen in nearly nine months, as escalating violence in Iraq increased worries about supply disruptions. Meanwhile, a meeting of the Organization of the Petroleum Exporting Countries ended with the cartel saying oil supplies will be sufficient to meet an expected rise in demand in the second half of the year.

Gold futures gained 0.4% to $1,266 an ounce. The dollar edged higher against the euro and the yen.European markets edged higher, with the Stoxx Europe 600 rising 0.2% after declining Wednesday for the first time in six sessions. Data showing industrial production in the euro zone increased more than expected in April helped provide support.

Asian markets were mostly lower. Japan’s Nikkei Stock Average fell 0.6% and China’s Shanghai Composite lost 0.2%.

In corporate news, Lululemon Athletica slid 13% in premarket trading after the yoga gear maker provided a fiscal second-quarter earnings and revenue outlook that was below current analyst projections, and lowered its full-year outlook. The company also said its chief financial officer, John Currie, plans to retire at the end of the fiscal year. Lululemon unveiled a $450 million stock buyback program.

Dow component Intel slipped 0.4% after the European Union upheld its fine of about $1.43 billion against the semiconductor for abusing its dominant position in the microprocessor market.

Restoration Hardware climbed 15% after the home furnishings retailer reported late Wednesday fiscal first-quarter adjusted earnings and revenue that rose above analyst estimates, and raised its full-year outlook.

– WALLSTREET JOURNAL

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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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