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Nigeria growth picks up in third quarter, sustained by services
Nigeria's economy grew 3.46%. yearonyear in the 3rd quarter of 2024, quicker. than in the very first two quarters of the year, statistics company. data revealed on Monday. Gross domestic product (GDP) development was driven mainly by the. services sector, which contributed more than 50% to aggregate. output in the July-September duration. Regardless of the pickup in growth, from 3.19% in the second. quarter and 2.98% in the very first, it was still short of the 6%. target set by President Bola Tinubu when he took workplace last. year in Africa's most populous nation and top oil manufacturer. Tinubu's lightning reform push in the very first weeks of his. administration triggered hope that he could lastly release the. complete capacity of Africa's sluggish economic giant. But 18 months on, the key slabs of his economic overhaul -. decreasing the value of the naira and ditching subsidies - have. set off the worst cost-of-living crisis in a generation and. are yet to translate into much faster development. The National Bureau of Statistics stated the services sector. grew 5.19% in the third quarter, contributing 53.58% to. aggregate GDP. Nigeria's dominant oil sector, which accounts for the bulk. of federal government income and forex reserves, broadened. 5.17%, with average everyday oil output of 1.47 million. barrels daily (bpd), up somewhat from 1.41 million bpd in the. 2nd quarter. Development in agriculture slowed to 1.14% from 1.41% in the. 2nd quarter, while markets grew 2.18%, versus 3.53% in. April-June. The International Monetary Fund forecasts Nigeria's economy. will grow 2.9% in 2024 and 3.2% next year.
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Leading NATO official contacts business leaders to get ready for 'wartime circumstance'
A leading NATO military official on Monday prompted services to be prepared for a wartime circumstance and adjust their production and distribution lines accordingly, in order to be less susceptible to blackmail from nations such as Russia and China. If we can make certain that all vital services and products can be provided no matter what, then that is an essential part of our deterrence, the chair of NATO's military committee, Dutch Admiral Rob Bauer, stated in Brussels. Speaking at an event of the European Policy Centre think tank, he described deterrence as going far beyond military capability alone, considering that all offered instruments might and would be used in war. We're seeing that with the growing number of sabotage acts, and Europe has seen that with energy supply, Bauer said. We believed we had a handle Gazprom, but we actually had a deal with Mr Putin. And the very same goes for Chinese-owned facilities and goods. We really have a deal with (Chinese. President) Xi (Jinping). Bauer kept in mind western reliances on products from China,. with 60% of all rare earth products produced and 90% processed. there. He said chemical components for sedatives, antibiotics,. anti-inflammatories and low high blood pressure medications were likewise. coming from China. We are naive if we believe the Communist Celebration will never ever utilize. that power. Business leaders in Europe and America require to. understand that the business decisions they make have tactical. consequences for the security of their country, Bauer stressed. Organizations require to be gotten ready for a wartime scenario and. adjust their production and distribution lines appropriately. Due to the fact that while it might be the armed force who wins battles, it's the. economies that win wars..
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Copper bounces on bargain searching and threat hunger
Copper prices rebounded on Monday from two sessions of losses, buoyed by deal hunting and increased danger appetite after the choice of fund manager Scott Bessent as U.S. Treasury secretary. Three-month copper on the London Metal Exchange ( LME) was up 1% at $9,054 a metric load by 1100 GMT. There's the odd bit of deal searching going on. A few of these metals are looking quite inexpensive compared to a month earlier, said Dan Smith, head of research at Amalgamated Metal Trading ( AMT). LME copper has shed 11% since touching a four-month peak on Sept. 30 as speculators liquidated bullish positions on disappointment over the pace of stimulus in top metals customer China and concerns that incoming U.S. President Donald Trump will enforce tariffs on China. In wider monetary markets, international stocks increased and bond markets invited Trump's choice of Bessent. It does seem to be a pro-risk rally today. The Treasury pick has reassured some individuals, Smith said. He included that AMT's model for copper, which seeks to reproduce algorithmic trading patterns utilized by computer-driven funds, is likely to flip to bullish from bearish today if copper closes above the $9,000 area. The most traded January copper contract on the Shanghai Futures Exchange (SHFE) closed 0.3% up at 74,160 yuan ($ 10,237.16) a load. While Trump's import tariffs will be a headwind for need potential customers in the medium and long term, quicker inventories drawdown in China and improving area premium will be supportive in the weeks ahead, stated ANZ expert Soni Kumari. Copper inventories in SHFE storage facilities have begun to wear down during China's peak intake season, which covers November and December. In other metals, LME aluminium was up 0.9% at $2,648. a heap, nickel included 0.4% to $16,030, zinc. climbed 1.3% to $3,004 and lead gained 0.6% to $2,034.50. while tin rose 0.6% to $29,095. For the leading stories in metals, click
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Iran will strive not to accept curbs on oil output quota, oil minister says
Iran will make every effort not to accept restrictions on its oil production quota, the country's oil minister Mohsen Paknejad said in a video shared by state media on Monday. Both OPEC and OPEC+, a few of their treatments are not compatible with the condition in which we are ... What is a provided is that we will aim not to accept restrictions to the production quota, Paknejad said. The Organization of the Petroleum Exporting Countries, of which Iran is a member and which pumps around half the world's. oil, is scheduled to fulfill on Dec. 1. The group, and its allies led by Russia and known as OPEC+,. may press back output increases once again due to weak international demand,. according to 3 OPEC+ sources knowledgeable about the conversations. last week. Deepening production cuts is unlikely according to experts. because several OPEC+ members are pressing to pump more, not. less. Paknejad stated Iran was not fretted about a brand-new president. taking workplace in the U.S. which Tehran prepared to ensure. minimal or no obstacles to its oil production under the new. administration. In his first term as U.S. president, Donald Trump withdrew. the U.S. from a 2015 nuclear pact with Iran and re-imposed. sanctions which harm Iran's oil sector. Recently, Iranian oil production has rebounded to. around 3.2 million barrels each day, according to OPEC.
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Area costs up on lower wind supply, higher need
European timely power rates increased on Monday on expectations of falling wind power supply throughout the region and higher demand. German baseload power for Tuesday was at 113.5 euros ($ 118.37) per megawatt hour (MWh) by 1026 GMT, up 92.4%. from the rate paid on Friday for Monday shipment. The comparable French contract was at 111.50. euros/MWh, LSEG data revealed. The Monday agreement was untraded on. Friday. German wind power output was anticipated to fall by 14.5. gigawatts (GW) on Tuesday to 27.4 GW, while the French wind. output was expected to come by 8.5 GW to 4.6 GW, LSEG data. showed. The residual load throughout the region is anticipated to. increase on Tuesday due to a huge reduction in wind power supply. and a boost in demand, said LSEG expert Naser Hashemi. French nuclear availability fell 3 portion indicate. 82% of overall capability as three reactors went offline with. unintended interruptions over the weekend. The Nogent 2 reactor was kept offline after a fault was. identified throughout the restart test as it was ramping back up from. a set up shutdown on Sunday, nuclear operator EDF stated. The Flamanville 1 reactor was taken offline Saturday due to. potential issues with the condenser in the non-nuclear part of. the facility, EDF said. Power intake in Germany is expected to increase 1.8 GW to. 61.1 GW on Tuesday, while need in France is projected to increase. by 4.5 GW to 57.5 GW, LSEG information revealed. German year-ahead power was up 1.6% at 100.80. euros/MWh, while the French 2025 baseload contract. edged up 0.4% at 79.80 euros/MWh. The (German) market now faces another volatile week as the. increasing concerns about gas supply and increasing tensions with. Russia might trigger variations to stay high, Energi Danmark. analysts stated in a day-to-day report. European CO2 allowances for December 2024 gained. 0.8% at 69.79 euros a metric lot.
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HSBC sustainability chief leaves after executive committee role dropped
HSBC's chief sustainability officer, Celine Herweijer, has stepped down, the bank said on Monday, weeks after a management reshuffle eliminated her function from the loan provider's executive committee. Herweijer will leave to pursue brand-new chances, the bank said, having actually played an essential function in shaping its climate policy. Her function was cut from the bank's top choice making body, called the group operating committee, as part of a wider reshuffle, Reuters reported on Oct. 29. The move stimulated concerns that the bank might row back on or thin down a few of its environment dedications under new CEO Georges Elhedery. Supporting the transition to net no stays a concern for HSBC, and among the 4 pillars of our service technique, the bank said on Monday. Julian Wentzel, head of international banking for the Middle East, North Africa and Turkey area, will be interim group chief sustainability officer pending an irreversible replacement, HSBC stated. The bank likewise announced Richard Blackburn as the group's. interim chief risk and compliance officer, pending a recruitment. procedure to discover a permanent prospect for a function that commands a. place on the group operating committee. Selim Kervanci, the bank's CEO for Turkey, was also. appointed as its Middle East CEO, HSBC said.
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Gold sheds 2% on profit taking, United States Treasury Secretary news
Gold rates decreased as much as 2% on Monday as financiers scheduled revenues following a fivesession rally to a threeweek high, while the announcement of fund manager Scott Bessent as the brand-new U.S. Treasury Secretary tempered safehaven purchasing. Spot gold was down 1.5% at $2,673.30 per ounce since 0943 GMT, decreasing 2% earlier in the session. U.S. gold futures shed 1.4% to $2,674.90. Bullion had struck its greatest because Nov. 6 in early Asia trade after publishing its best weekly gain in nearly two years on Friday. The 2 aspects weighing on gold include earnings taking after the solid rally last week, and the election of Scott Bessent as the next U.S. Treasury secretary with some market individuals seeing him as less negative for a trade war, said UBS analyst Giovanni Staunovo. Gold is generally seen as a safe financial investment throughout financial and political risks, while some strategists believe that Bessent's nomination was a relief as he understands markets and his visit might minimize the opportunity of severe tariffs on U.S. trade partners. Market individuals are also watching out for the Federal Reserve's November FOMC meeting minutes, GDP data (first modification), and core PCE figures, all due this week. The marketplaces are broadly expecting the U.S. Fed to cut rates by 25 basis points at its next conference on Dec. 18, although traders have actually downsized bets on this outcome over recent days, Frank Watson, market analyst at Kinesis Cash, stated in a note. Traders presently see a 56% chance of another 25 basis points rate cut in December, according to the CME Fedwatch tool. We still search for a 25 bps rate cut by the Fed, but the more crucial part for markets will be if the dot plots recommend less rate cuts next year or not, Giovanni stated. Spot silver fell 1.7% to $30.78 per ounce, platinum was down 1.1% to $952.60. and palladium slipped 0.4% to $1,005.25.
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Vedanta to proceed with dollar bond sale in first post-Adani India credit test
Vedanta Resources, which held off a planned sale of dollar bonds recently after the Adani group's top authorities were arraigned by U.S. prosecutors, will now release the concern on Monday, according to 2 sources. The problem, which might raise as much as $500 million, is the initially considering that the Adani crisis and will test international cravings for Indian high yield credit following the claims versus Adani. Adani Group, led by billionaire Gautam Adani, has said the accusations made by the U.S. authorities are unwarranted. Considering that the Adani crisis has actually not exaggerated after the initial fears, the company deemed fit to go on with the problem, a banker with knowledge of the Vedanta sale informed Reuters. A 2nd source knowledgeable about the business's plans validated the sale would be going on. The sources declined to be identified because they were not authorised to speak to the media. Vedanta, which has interests varying from oil and gas to mining and metals and is headquartered in the UK, did not instantly respond to a request for comment. The notes have 2 maturities - one for 3.5 years and the other for 7 years, for which the company has set a preliminary rate assistance of 10.375% and 11.375%, respectively, the sources stated. The notes likewise have call choices. In September, Vedanta Resources raised $900 million in its first dollar bond issue in more than two years at a voucher of 10.875%. Vedanta will utilize the proceeds from the latest sale to refinance impressive bonds due in 2028, one of the sources stated. Citigroup, Barclays, Deutsche Bank, JPMorgan, and Standard Chartered Bank are the joint worldwide planners and lead supervisors for Vedanta's dollar bond. JPMorgan and Deutsche Bank decreased to comment, while Barclays, Citigroup, and Standard Chartered Bank did not react to Reuters' ask for comment.
United States gas surplus will be gotten rid of before end of winter 2024/25: Kemp
U.S. gas stocks are near record highs for this time of year after exceptionally moderate temperature levels connected to the El Nino weather condition phenomenon slashed gas and electrical energy usage for heating throughout the winter of 2023/24.
Ultra-low costs are increasing gas combustion by power generators and forcing producers to cut back drilling, which ought to make sure the surplus is gotten rid of before the end of winter 2024/25.
Working gas stocks totaled up to 2,484 billion cubic feet ( bcf) on April 26, the highest for that time of year given that 2016 and before that 2012, according to data from the U.S. Energy Details Administration (EIA).
Inventories were 666 bcf (+37% or +1.44 basic variances). above the 10-year seasonal average and the surplus had swelled. from 64 bcf (+2% or +0.24 basic discrepancies) at the start of. winter season on Oct. 1.
The enormous carryover of stocks at the end of the. winter season was mostly driven by remarkably warm weather. originating from very strong El Nino conditions in the main and. eastern Pacific Ocean.
Strong El Nino conditions are associated with much. warmer-than-normal winter season temperatures across the northern tier. of states and a sharp reduction in heating demand.
The winter season of 2023/24 was characterised by the greatest El. Nino conditions considering that 2015/16 and before that 1997/98.
Chartbook: U.S. gas inventories and rates
The United States and Canada experienced the warmest winter season on record, with. temperature levels between October and March more than 2.8 degrees. Celsius above the long-lasting average.
The month of December was especially warm, with. temperature levels more than 4.6 degrees Celsius above the long-term. seasonal average.
As an outcome, in between July 1 and April 30,. population-weighted heating demand across the Lower 48 states. was 11% below the 1980-2010 average.
Low consumption and excess stocks weighed on gas. costs, pushing them down to a few of the lowest levels for. decades after changing for inflation.
Front-month futures prices for gas delivered at Henry Center in. Louisiana balanced just $1.75 per million British thermal systems. in March 2024, the most affordable cost for more than 33 years in real. terms.
Ultra-low costs are currently assisting restore balance,. apprehending the accumulation of excess inventories, and are most likely. to eliminate the surplus before the end of winter season 2024/25.
BRING BACK BALANCE
Surplus inventories sanctuary been flat over the last 7. weeks because the middle of March, after rising regularly given that. October, except for a quick deficiency related to Winter. Storm Heather in January.
The winter season of 2024/25 is likely to be considerably colder. than the winter season of 2023/24 with more heating demand and gas. consumption.
El Nino conditions have currently faded and extremely strong. episodes occur with a frequency of about one out of every 10. years, so the likelihood of another strong episode next winter season. is low.
Exceptionally low gas prices are currently encouraging optimum. usage of gas-fired electrical energy creating units at the expenditure of. coal.
Total gas-fired generation capacity had actually reached 508 million. kilowatts (kW) at the end of 2023, up from 470 million kW at the. end of 2018 and 425 million kW at the end of 2013.
The gains have actually come at the expense of coal where capacity. had actually been decreased to 181 million kW at the end of 2023, below. 303 million kW a years earlier.
Low gas rates incentivised owners of these systems to run. them for many more hours throughout the winter season of 2023/24.
Gas-fired combined-cycle generators (the most efficient. gas-fuelled units) run at a seasonal record of nearly 63%. of their optimum capacity throughout January 2024, up from 57% in. January 2023.
Single-cycle gas turbines (which are far less effective and. mostly limited to satisfying peak demand) operated at a seasonal. record of 14% of their optimum capacity, up from 9% a year. in the past.
As an outcome, electrical energy generators burned through record. volumes of gas despite remarkably mild weather, according to. the most recent EIA data.
Generators taken in 1,158 bcf of gas in January 2024, a. seasonal record, and almost 166 bcf more than in the exact same month. in 2023, the previous high.
Low costs continued throughout the next 2 months and are. likely to have actually ensured generators consumed record seasonal. volumes in both February and March.
GETTING RID OF SURPLUS
Costs have actually increased somewhat from their trough in the. very first quarter, they stay close to multi-decade lows, guaranteeing. gas-fired generators will continue to provide an enhanced share. of electrical energy in the summer of 2024.
If there are any extended periods of extremely heat, the. resulting air-conditioning need is most likely to draw down gas. inventories rapidly, helping narrow the surplus.
At the very same time, gas exports have actually ended up being increasingly. critical in figuring out domestic stocks and costs and will. help in reducing a few of the excess stocks.
Pipeline and LNG exports totaled up to 22 bcf daily (bcf/d). in February 2024, up from less than 21 bcf/d in the same month a. year earlier and 12 bcf/d 5 years back.
Exports amounted to 21% of all domestic dry gas production. in February 2024, up from 20% in February 2023 and 13% in. February 2019.
By February 2025, the EIA projections exports will have increased. further to 23 bcf/d and absorb 22% of all domestic dry gas. production.
Finally, ultra-low rates have actually already required some major. domestic gas producers to announce cuts to their drilling and. production programs.
The typical variety of rigs drilling primarily for gas had. fallen to 108 in April, below 115 in March and 120 in. February.
Less rigs and finished wells will filter through into. slower development and even an outright decline in production previously. the end of 2024.
The mix of greater consumption and exports and lower. production is likely to eliminate the surplus and push costs. greater before the winter season of 2024/25 is over.
Related columns:
- Northern Hemisphere's record winter heat slashes gas. consumption (March 20, 2024)
- El Nino pushes genuine U.S. gas prices to multi-decade low. ( February 16, 2024)
- Prospect of strong El Nino weighs on U.S. gas prices. ( August 30, 2023)
John Kemp is a market expert. The views expressed. are his own. Follow his commentary on X https://twitter.com/JKempEnergy.
(source: Reuters)