- …Dangote Refinery assures steady fuel supply
- ..hikes fuel gantry price to N1,175 per litre
- …as PETROAN projects diesel to hit N3,000 per litre, fuel N2,000
Oil and gas stocks listed on the Nigerian Exchange Limited (NGX) added about N250.8 billion to investors’ wealth yesterday driven by rising global crude oil prices amid escalating geopolitical tensions in the Middle East.
Market data showed that the rally in energy stocks was triggered by heightened hostilities involving Iran, the United States and Israel, which have unsettled global oil markets and pushed crude prices higher on fears of potential supply disruptions. The surge in crude prices, which got close to $120 yesterday, strengthened investor appetite for oil and gas equities on the NGX, as energy companies are expected to benefit from improved revenue prospects when global oil prices rise.
Amid the global crude surge, Dangote Petroleum Refinery again adjusted upward the gantry price of fuel by N180 to N1,175 per litre which is an 18.1 per cent increase in three days and the third increase within a week. It also increased the gantry price of diesel technically called Automotive Gas Oil, (AGO) rose to N1,620 per litre. Oil prices at the international market yesterday skyrocketed-to more than $119 a barrel reaching levels not seen since mid-2022.
According to British Broadcasting Corporation (BBC) the price of international benchmark, Brent crude rose by more than 25 per cent to trade at $119.50 a barrel at one point before falling back to around $107. The United States West Texas Intermediate (WTI) crude also rose and traded at about $104 a barrel. Reuters reported that some major producers cut supplies and fears of prolonged shipping disruption gripped the market due to the expanding US-Israeli war with Iran.
A breakdown of stock trading in the sector showed that four of the six oil and gas companies listed on the exchange recorded gains, collectively adding about N250.797 billion to their market capitalisation, while the remaining two stocks closed the session unchanged. Leading the gainers was Aradel Holdings Plc, which recorded the largest increase in market value with a cumulative gain of N172.06 billion, as investors positioned for potential upside in the oil market. Oando Plc followed with a market value gain of N61.54 billion, reflecting strong buying interest.
The company’s share price rose from N49.70 at the start of trading to N54.65 at the close. Conoil Plc also recorded notable gains, adding N11.73 billion to its market capitalisation as its share price advanced from N169 to N185.90. Similarly, Eterna Plc gained N5.48 billion, with its share price rising from N42.35 to N46.55. In contrast, Seplat Energy Plc closed flat at N9,099.90 per share, while TotalEnergies Marketing Nigeria Plc also maintained its previous price, ending the session at N640 per share.
The rally in oil and gas stocks comes amid growing global concern over the possibility of a wider conflict in the Middle East. Analysts say tensions involving Iran, Israel and the United States could disrupt oil production and shipping routes in the region, particularly around the Strait of Hormuz, one of the world’s most critical oil transit corridors.
