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Saudi extends oil production cut as Russia reduces exports

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Saudi Arabia said on Monday it was extending a voluntary oil production cut of one million barrels per day, and Russia said it was slashing exports by 500,000 bpd.

The moves were the latest attempts by major producers to stabilise markets rocked by factors including continued fallout from the Russian invasion of Ukraine and China’s faltering economic recovery.

The cut by Saudi Arabia, the world’s biggest crude exporter, was first announced after a June meeting of oil producers and took effect at the weekend.

Saudi Energy Minister Prince Abdulaziz bin Salman noted at the time that it was “extendable”.

In a report on Monday announcing that the cut would continue through August, the official Saudi Press Agency said it “can be extended” further, citing an energy ministry source.

“The source confirmed that this additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets,” SPA said.

Monday’s extension announcement leaves the kingdom’s production at approximately nine million bpd.

Also on Monday, Russia unveiled its export cut of 500,000 bpd for August “as part of efforts to ensure that the oil market remains balanced”.

The announcement by Alexander Novak, Russian deputy prime minister responsible for energy policy, came on the back of cuts to Russian oil production this year by the same volume as part of Moscow’s response to Western sanctions levied over the conflict in Ukraine.

Since the beginning of large-scale hostilities in Ukraine last February, Moscow has pivoted energy exports from Europe to India and China.

Muted Response

The initial market reaction to Monday’s announcements by Riyadh and Moscow was muted.

Brent was up 0.98 percent to $76.15 per barrel, and West Texas Intermediate was up 1.02 percent to $71.36 per barrel.

Recent efforts by OPEC+ to bolster prices by reducing output have not succeeded.

In April, several OPEC+ members opted to slash production voluntarily by more than one million bpd — a surprise move that briefly raised prices but failed to bring about lasting recovery.

Brent is down 11 percent since the beginning of the year and WTI is down 7 percent, as a sluggish recovery in China and worries about the US economy weigh on demand forecasts.

Saudi Arabia is counting on high oil prices to fund an ambitious reform agenda that could shift its economy away from fossil fuels.

Oil giant Saudi Aramco, the jewel of the kingdom’s economy, said it recorded profits totalling $161.1 billion last year, allowing Riyadh to notch up its first annual budget surplus in nearly a decade.

Analysts say the kingdom needs oil to be priced at $80 per barrel to balance its budget, which is well above recent averages.

 

 

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NNPCL Refutes Shutdown Claims: Port Harcourt Refinery Fully Operational

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The Nigerian National Petroleum Company Limited (NNPCL) has dismissed media reports suggesting that the recently resuscitated old Port Harcourt refinery has been shut down, labeling such claims as baseless and misleading.

In a statement issued in Abuja on Saturday, the Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, clarified that the refinery, with a capacity of 60,000 barrels per day, is “fully operational.”

The facility resumed operations two months ago after years of inactivity.

“We wish to clarify that such reports are totally false, as the refinery is fully operational, as verified a few days ago by former Group Managing Directors of NNPC,” Soneye said.

He added that preparations for the day’s loading operation are currently underway, emphasizing that the public should disregard the claims.

“Members of the public are advised to discountenance such reports as they are the figments of the imagination of those who want to create artificial scarcity and rip off Nigerians,” Soneye stated.

The old Port Harcourt refinery is part of the country’s efforts to revive its local refining capacity. Three years ago, the Federal Government approved $1.5 billion to rehabilitate the plant, which was initially shut down in 2019 due to operational challenges.

Despite being one of the largest oil producers globally, Nigeria has long relied on fuel imports to meet its domestic needs, swapping crude oil for petrol and other refined products. This dependency, coupled with government subsidies, has strained the nation’s foreign exchange reserves.

The recent return of the Port Harcourt refinery to operation follows the commissioning of the Dangote refinery, which began petrol production in September 2024. These developments are expected to reduce Nigeria’s reliance on imports and address long-standing issues in the petroleum sector.

 

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Bank Robberies Now History in Lagos Since 2014 – IGP

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The Inspector General of Police, Kayode Egbetokun, has declared that the era of armed and bank robberies in Lagos State is a thing of the past, attributing the success to the collaborative efforts between the police and the state government.

Egbetokun made this statement on Thursday during the 18th Annual Town Hall Meeting on Security organized by the Lagos State Security Trust Fund (LSSTF). He noted that since 2007, only one bank robbery had been successfully executed in the state, which occurred in 2014.

“There was a time when armed robbery and bank robbery were common in Lagos. However, I can confidently say that since 2007, only one bank robbery succeeded, and that was as far back as 2014. The days of armed robbery and bank robbery are gone,” he said.

The IGP commended the Lagos State Government for its consistent support, emphasizing the critical role it has played in maintaining security in the bustling economic hub of the nation. He highlighted the challenges posed by the state’s continuous internal migration, with thousands of people moving into Lagos daily, creating additional security demands.

“What we are doing here today is the usual assistance the state government has been giving to the police. Without this, we would have been overwhelmed with insecurity in Lagos State,” Egbetokun added.

At the event, Governor Babajide Sanwo-Olu further demonstrated his administration’s commitment to security by donating over 250 brand-new patrol vehicles, along with hardware, communication gadgets, and protective gear to the police.

In his address, Sanwo-Olu outlined the government’s efforts to scale up the use of technology and data for improved security and traffic monitoring. He revealed plans to deploy drone technology for surveillance of waterways and densely populated areas.

“The EGIS component of our mapping and digitalization has almost been completed. Lagos is now properly mapped, and drone technology will be deployed to enhance monitoring, crowd management, and traffic assessment. This will ensure real-time responses to incidents,” the governor explained.

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Chad Terminates Military Partnership with France

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Chad announced Thursday that it was ending military cooperation with former colonial power France, just hours after a visit by French Foreign Minister Jean-Noel Barrot.

“The government of the Republic of Chad informs national and international opinion of its decision to end the accord in the field of defence signed with the French Republic,” foreign minister Abderaman Koulamallah said in a statement on Facebook.

Chad is a key link in France’s military presence in Africa, constituting Paris’s last foothold in the Sahel after the forced withdrawal of its troops from Mali, Burkina Faso and Niger.

“This is not a break with France like Niger or elsewhere,” Koulamallah, whose country still hosts around a thousand French troops, told AFP.

At a press briefing after a meeting between President Mahamat Idriss Deby and Barrot, Koulamallah called France “an essential partner” but added it “must now also consider that Chad has grown up, matured and is a sovereign state that is very jealous of its sovereignty”.

Barrot, who arrived in Ethiopia on Thursday evening, could not immediately be reached for comment.

– ‘Historic turning point’-

Chad is the last Sahel country to host French troops.

It has been led by Deby since 2021, when his father Idriss Deby Itno was killed by rebels after 30 years in power.

The elder Deby frequently relied on French military support to fend off rebel offensives, including in 2008 and 2019.

It borders the Central African Republic, Sudan, Libya and Niger, all of which host Russian paramilitary forces from the Wagner group.

Deby has sought closer ties with Moscow in recent months, but talks to strengthen economic cooperation with Russia have yet to bear concrete results.

Koulamallah called the decision to end military cooperation a “historic turning point”, adding it was made after “in-depth analysis”.

“Chad, in accordance with the provisions of the agreement, undertakes to respect the terms laid down for its termination, including the notice period”, he said in the statement, which did not give a date for the withdrawal of French troops.

The announcement comes just days after Senegal’s President Bassirou Diomaye Faye indicated in an interview with AFP that France should close its military bases in that country.

“Senegal is an independent country, it is a sovereign country and sovereignty does not accept the presence of military bases in a sovereign country,” Faye told AFP on Thursday.

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