Connect with us

Business

World stocks lose grip on gains, euro scales heights

Published

on

LONDON – The euro reached a five-year peak against the yen and a six-week high against the dollar on Tuesday, as focus intensified on the dwindling level of spare cash in the euro zone’s banking system and the ECB’s apparent lack of concern.

Stocks consolidated some of their gains of the last two days as caution also ticked-up before the Federal Reserve’s meeting next week amid talk of a tentative scaling-back of its stimulus from some of its policymakers.

After a subdued day for Asian stock markets, Germany’s DAX and France’s CAC 40 and Britain’s FTSE 100 all opened little changed to get the pan-regional FTSEurofirst 300 index off to a steady start.

Investors were poised for a busy day of data on some of the countries still struggling in the euro zone, as well as some interesting money market operations at the ECB where liquidity levels are now the tightest in two years.

Slightly weaker-than-expected French industrial production got things off to a shaky start though equivalent data from Italy was better ahead of its final third quarter GDP number later at 1000 GMT.

ASIAN STOCKFrance’s disappointing figures did little to rattle the strong euro, or the region’s main bond markets as they continued to add to the minor gains of recent days.

The euro, at $1.3737, was at its highest level since late October versus the dollar and a five-year high of 142.19 yen as anticipation of further moves from Tokyo to boost growth kept the Japanese currency on the back foot.

“It is hard to say the euro will weaken unless the ECB does something,” said Laurent Fransolet, an interest rate strategist at Barclays in London.

“The bar for them (to carry out quantitative easing or other types of aggressive easing measures) is quite a bit higher compared to the Fed or Bank of England.”

Last week after the ECB kept rates on hold, the bank’s head Mario Draghi said he was satisfied with goings-on in the money market and on Monday, one of the bank’s other top policymakers Yves Mersch stressed the hurdles to further aggressive easing measures.

One factor that has been driving the euro higher is that, in sharp contrast to the Fed, the ECB’s balance sheet has shrunk 8 percent this year as banks have started paying back the 1 trillion euros they took at the peak of the euro crisis.

The amount of excess ECB cash that has long kept bank-to-bank borrowing rates pinned down is now at its lowest level since late 2011.

Analysts will be watching closely to see exactly how tight things have got later when the ECB attempts to get banks to park cash with it to offset its controversial sovereign bond purchases of the past.

GLOBAL IMPROVEMENT

Benchmark U.S. Treasury yields were steady at 2.8243 in early European trade and Wall Street was expected to inch higher when it resumes later after the S&P 500 drifted to another record high on Monday.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent, though the session’s moves were small as trading was cautious before next week’s U.S. Federal Reserve meeting.

The Nikkei stock average gave up 0.3 percent, pulling back from a one-week high as investors booked gains before the year-end, though Japan’s benchmark was still on track for its best yearly performance since 1972.

A spate of data released by China late in the session reassured investors worried that the world’s second-largest economy might be slowing. Industrial output was slightly shy of market expectations, but retail sales cheered.

“It’s hard to see this causing any anxiety to the authorities or causing them to see the need for policy change,” Tim Condon, economist at ING in Singapore, said about the Chinese data.

FED FOCUS

Signs of improvement in the global economy have provided fitful support to riskier assets in recent weeks as markets have been buffeted by uncertainty over the Fed’s tapering timeline.

A Reuters poll showed on Monday showed it was still expected to start the process in March, but some economists now say that it might do so as early as this month.

Several Fed officials also lent credence to the idea that a tentative reduction was on the near-term horizon on Monday.

St. Louis Fed President James Bullard said the bank could slightly reduce its monthly bond purchases this month, while Dallas Federal Reserve Bank President Richard Fisher also said tapering should start next week.

On the commodities front, Brent oil was back up to $110 a barrel though U.S. crude edged up to $97.79 per barrel on expectations of a second weekly drop in U.S. crude inventories.

Spot gold hovered to $1,240 an ounce, after gaining over the last two sessions on short-covering, technical selling and some fund-buying.

Copper was steady at $7,137.25 a tonne, near a one-month high as steady consumer buying from China put a floor under prices.

– REUTERS

Click to comment
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Business

DPRP’s Free Fuel Delivery Expands to Kano, Imo, Nearly 10 More States

Published

on

In a move expected to reduce distribution costs for independent petroleum marketers and create room for lower petrol prices at the pump, the Dangote Petroleum Refinery & Petrochemicals (DPRP) has expanded its free petroleum product delivery initiative to Kano, Imo, Anambra and Nasarawa States.

A company statement on Sunday in Lagos, has it that the initiative, which began with deliveries to Lagos, Ogun, Rivers, Kaduna, Abuja and Delta States, is designed to bring petroleum products closer to marketers and retailers while removing the cost of transporting products over long distances from the refinery to various parts of the country. By absorbing the delivery cost, the refinery is reducing one of the key expenses built into the downstream distribution chain.

Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Fatima Aliko Dangote, said the initiative was designed to ensure that the benefits of domestic refining translate into tangible savings for businesses and consumers. “The value of domestic refining must ultimately be felt beyond the refinery gate. By absorbing the cost of delivering petroleum products to our customers, we are removing a significant component of the distribution burden and creating room for those savings to flow through the value chain to consumers. Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria.”

READ ALSO: Safe Driving: Dangote Transport Unveils Novel Real-Time Driver Monitoring Control Room

The expansion has been welcomed by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which said the initiative would significantly reduce some of the financial and logistical pressures confronting independent marketers and contribute to lower prices for consumers.

National Publicity Secretary and Public Relations Officer of IPMAN, Chinedu Ukadike, said the initiative addresses a longstanding challenge in the petroleum products distribution chain, where marketers commit substantial funds to product purchases and may then have to wait for extended periods before their orders are loaded and transported.

“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers,” Ukadike said. “There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down.”

According to him, the refinery’s delivery arrangement reduces the period for which marketers’ funds remain tied up, improves cash flow and allows businesses to deploy their capital more efficiently.

“This time around, Dangote has made it very, very easy for marketers. Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down,” he said.

Ukadike said the initiative could also have a direct impact on pump prices because transportation represents a cost that ultimately forms part of the price paid by consumers.

“You also have less risk, and you have petroleum products at your doorstep. Other consumers will also see that our pump price will not continue to go up. The more Dangote brings down its pump price, the more independent marketers will bring down theirs,” he said.

The reduction in distribution costs is particularly significant for marketers serving locations far from the refinery. Under conventional distribution arrangements, petroleum products transported over long distances incur additional costs associated with haulage, vehicle operations, driver expenses, insurance, road risks and other logistics. Removing or reducing these costs can improve the economics of supplying those markets and create greater scope for competitive retail pricing.

The initiative also reduces the operational risks associated with moving large volumes of petroleum products over long distances. By taking products closer to their destination markets, the refinery is helping to shorten the supply chain and improve the reliability and efficiency of product distribution.

Ukadike commended the management of Dangote Refinery for the initiative and urged the company to extend the programme to more locations across the country, particularly in the northern states, to promote wider access to competitively priced petroleum products.
He described the development as a practical demonstration of the benefits of competition and deregulation in Nigeria’s downstream petroleum sector.

“This is the beauty of deregulation and competition,” he said.

The expansion comes as Nigeria’s downstream petroleum sector continues to adjust to the growth of domestic refining capacity and a more competitive market environment. The Dangote Petroleum Refinery, with a capacity of 700,000 barrels per day, is increasingly supplying refined petroleum products to the domestic market while also expanding its presence in international markets.

The free delivery initiative adds another dimension to the refinery’s impact on the downstream sector. Beyond increasing domestic supply, the refinery is now taking steps to reduce the cost of moving those products from the refinery to consumers.

For motorists and households, the potential benefit is straightforward: the lower the cost of moving petrol through the supply chain, the greater the opportunity for marketers to reduce the price consumers pay at the pump.

Continue Reading

Business

Safe Driving: Dangote Transport Unveils Novel Real-Time Driver Monitoring Control Room

Published

on

Dangote Transport has taken another major step towards improving road safety with the launch of a state-of-the-art Driver Monitoring Control Room (DMCR) that allows drivers operating its trucks to be monitored in real time while on transit across Nigeria.

The innovative facility, located at the Dangote Transport operational base in Ibese, Ogun State, highlighted the company’s commitment to leveraging technology and best practices to reduce road accidents and improve drivers’ behaviour.

The Head of Operations, Dangote Transport, Ibese, Mr. David Idiege, described the DMCR as one of the latest additions to the company’s comprehensive safety architecture.

According to him, the facility enables transport control personnel to observe drivers while they are on the road, monitor compliance with safety standards and promptly intervene whenever risky behaviour is detected.

“We are constantly looking for innovative ways to strengthen safety across our transport operations. The Driver Monitoring Control Room represents another significant milestone in our efforts to ensure that all journeys are conducted safely and responsibly,” Idiege said.

READ ALSO: Chevron Supports Local Capacity with $10b in 10 Years

He explained that the initiative forms part of a broader strategy aimed at reducing accidents, enhancing operational efficiency and safeguarding both the drivers and other road users.

“Safety remains our highest priority. We recognize the responsibility that comes with operating a large fleet of vehicles across the country. That is why we continue to invest heavily in technology, systems and training that help us maintain the highest safety standards,” he stated.

Idiege disclosed that the company has, over the years, implemented several safety measures designed to improve driver performance and minimize risks on the road.

He listed these initiatives to include speed limiters, vehicle immobilizers, speed boosters control systems, facial recognition devices, journey management protocols, mandatory drug and alcohol testing, compulsory rest periods for drivers, periodic recertification as well as regular training and retraining programmes.

“Our approach is holistic. Technology alone is not enough. We combine technology with strict operational procedures, driver welfare programmes, competency assessments, recertification exercises and continuous capacity building to ensure that our drivers remain professional and safety-conscious at all times,” he added.

He further explained that compulsory rest policies help combat fatigue, one of the leading causes of road accidents globally.

“We do not encourage driver fatigue. Every driver is required to comply with our journey management procedures and mandatory rest schedules. We understand that alert and healthy drivers make safer decisions on the road,” he said.

Also speaking during the tour, the Head of Transport Control, Mr. Ifeanyi Ezeala, who conducted journalists around the control facility, explained that the on-board camera system installed across thousands of Dangote trucks was facilitated by technology partner Nova Tracks.

According to Ezeala, the camera system enables real-time visibility into driver conduct and provides transportation managers with critical information needed to proactively address safety concerns.

“The technology allows us to monitor driver activities while journeys are in progress. The cameras provide live feeds and alerts, helping us detect behaviours that could compromise safety and enabling us to take immediate corrective action,” Ezeala explained.

He noted that the monitoring solution is not intended to police drivers but rather to support them and ensure they operate under safer conditions.

“Our objective is preventive rather than punitive. We want to identify potential risks before they develop into incidents. By having visibility into operations in real time, we can contact drivers where necessary, provide guidance and support safer driving decisions,” he said.

Ezeala stated that the system has enhanced fleet management capabilities by providing valuable operational data that strengthens decision-making and supports the company’s overall safety objectives.

“The transportation industry is evolving rapidly, and technology now plays a critical role in fleet safety management. By integrating advanced monitoring systems into our operations, we are creating a safer environment for our drivers and for all road users,” he said.

He commended Nova Tracks for its role in deploying the technology and supporting the company’s vision for safer transportation operations.

The Driver Monitoring Control Room is the latest in a series of investments by Dangote Transport aimed at promoting safe driving, reducing accident risks and advancing operational excellence across its nationwide logistics network.

With thousands of trucks moving raw materials and finished products daily across the country, the company says it will continue to deploy innovative solutions that support safer journeys, improve driver performance and contribute to a safer road transport ecosystem in Nigeria.

Continue Reading

Business

NNPC Ltd Expresses Concern for Dearth of Skills in Energy Sector

Published

on

Nigeria’s widening energy workforce and technical skills gap has left the country on the verge of losing control of its energy future unless the matter is addressed with the urgency it deserves.

The Nigerian National Petroleum Company Limited (NNPC Ltd) raised the concerns on Thursday at the Oil and Gas Trainers Association of Nigeria (OGTAN) HCD Conference and Expo in Warri, Delta State.

The Chief Human Resources Officer, NNPC Limited, Kazachiyang Nuhu, observed the convergence of the Petroleum Industry Act (PIA), the Decade of Gas, which raised participation by local operators and the global energy transition already created higher demand for technical talent that the industry was struggling to supply.

READ ALSO: Chevron Highlights Regulatory Imperatives at PENGASSAN Summit

In a presentation at the OGTAN conference, Nuhu maintained that the changing energy landscape, driven by policy, market shifts, technology and changing expectations of younger workers, had created a technical talent demand that Nigeria could not afford to ignore.

He said artificial intelligence, digitalisation and automation were compressing skill cycles, while capital was increasingly moving towards liquefied natural gas, cleaner molecules and low-carbon opportunities.

Nuhu warned that unless the workforce was urgently reskilled and repositioned, Nigeria could lose its ability to effectively participate in the emerging energy economy.

“Reskill, reposition or risk becoming a spectator in our own industry,” he told stakeholders at the conference.

He identified workforce and skills gaps, an ageing workforce and brain drain, commonly referred to as ‘japa’, among the major challenges confronting the industry.

He also identified a widening disconnect between academia and industry, particularly the gap between what was taught in educational institutions and what the industry required from employees from day one.

Other challenges highlighted included weak safety culture, spills and flaring; vandalism, crude theft, surveillance and metering gaps; supply of quality materials and equipment; ageing assets, reliability and project overruns; digital oilfield and environmental, social and governance skills; as well as refinery operations, product quality, LPG safety and trade finance.

Nuhu noted that the solution required a fundamental shift in how human capital development was approached across the industry, noting that training must become more closely linked to production, safety, reliability and cost, while programmes must be based on current field realities rather than generic manuals.

He called for training to be benchmarked against global standards and supported by emerging technologies such as simulators, digital twins, virtual and augmented reality and artificial intelligence. “Every naira spent on training must translate to a safer plant, a skilled employee, and a stronger balance sheet,” he added.

Nuhu disclosed that the NNPC Ltd would also change the basis on which it engaged training providers, stressing that trainers must understand the direction in which the industry was heading. “We will partner only with trainers who teach the industry we are becoming, not the one we are leaving behind,” he said.

He said the company was already developing its workforce through initial professional development, career pathways, industry exposure, leadership pipelines, mentorship and knowledge transfer.

According to him, the ultimate measure of Nigerian content should be whether Nigerians were acquiring the expertise required to lead major projects to international standards, saying, “Not how many Nigerians were hired, but how many world-class Nigerians led the project.”

Nuhu argued that true local content should be measured by expertise rather than percentages, with future industry needs spanning technical, digital, commercial and human capabilities.

He said this would include skills in renewable integration, gas-to-power, AI, predictive maintenance, energy economics, carbon markets, sustainable finance, adaptive leadership and systems thinking.

He challenged Nigeria to determine whether it would become a contributor or merely a consumer of the future energy economy. He called on industry players, trainers and academia to move from parallel efforts towards a unified capacity compact.

OGTAN President, Chris Osarunmewense, stressed that the association was seeking to sustain conversations around how Nigeria could develop a workforce capable of delivering on the promises of companies operating in the oil and gas industry.

Osarunmewense said human capital development was a continuous process that required the industry to recognise and nurture people’s potential.

“Human capital develops by progression. At OGTAN, therefore, we treasure the potential of people who have developed human capital in nature to effectively operate within the oil and gas industry,” the OGTAN boss said.

He added that the conference was designed to bring stakeholders together and discuss the ways to address the skill gaps in the industry. According to him, the decision to hold the 2026 conference in Warri, rather than Lagos or Abuja, was deliberate, given the city’s place in the history and development of Nigeria’s petroleum industry.

“For us, this choice was meaningful. Warri is not simply a venue; it is part of the history of Nigeria’s oil and gas industry,” he added.

Osarunmewense said the Niger Delta had for decades remained at the heart of Nigeria’s petroleum industry, with the region’s history of exploration, production, processing, services, technical manpower and community development deeply intertwined with the country’s broader energy economy.

The OGTAN president said the association wanted international participants to experience the Niger Delta not merely as a geographical location associated with petroleum production but as a region with talent, enterprise, technical expertise, institutions, communities and significant human capital potential.

He said the collaboration with the Petroleum Training Institute (PTI) further strengthened Warri’s suitability for the conference because of the institute’s role in technical and professional training in the petroleum sector.

Osarunmewense noted that the industry’s human capital challenges could not be resolved by any single stakeholder, stressing the need for collaboration across the value chain.

“The challenges before the industry are too complex for any single organisation to solve. The government alone cannot solve it. Regulators cannot solve it alone. Oil and gas companies cannot solve it alone. Training providers cannot solve it alone. Universities and technical institutions cannot do so alone either. We need collaboration across the value chain,” he emphasised.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x