AFP

OPEC’s secretary general, Nigeria’s Mohammad Barkindo, has died at the age of 63, leaving the oil cartel in “shock” on Wednesday at a tumultuous time for the markets.

Barkindo had headed the Organization of the Petroleum Exporting Countries since 2016 and was scheduled to be replaced by Kuwait’s Haitham Al-Ghais next month. 

Under his stewardship, the cartel forged ties with Russia and nine other oil-producing countries to form a wider group known as OPEC+ in a bid to better stabilise oil markets.

After OPEC+ slashed output during the pandemic to boost prices, the 23-member group’s moves have not calmed markets — with record high prices — in recent months amid the war in Ukraine.

Barkindo died late Tuesday and will be buried on Wednesday in his home town of Yola, according to the Nigerian National Petroleum Corporation’s chief executive Mele Kyari.

“Certainly a great loss to his immediate family, the NNPC, our country Nigeria, the OPEC and the global energy community,” Kyari wrote, without providing any further details about the circumstances of Barkindo’s death.

– ‘Trailblazer’ –

“This tragedy is a shock to the OPEC Family,” Vienna-based OPEC tweeted.

“We express our sorrow and deep gratitude for the over 40 years of selfless service that… Barkindo gave to OPEC. His dedication and leadership will inspire OPEC for many years to come.”

In a statement, OPEC described Barkindo as “a trailblazer widely admired and respected throughout the globe. A dear friend to many.”

Only a few hours earlier, Barkindo — who had not shown any sign of being ill — had met Nigerian President Muhammadu Buhari in Abuja, where Buhari praised Barkindo’s “distinguished achievements at OPEC”. 

“You were able to successfully navigate the organisation through turbulent challenges,” Buhari had said.

Barkindo himself in a speech last year described serving as OPEC secretary general for two terms as an “honour of a lifetime”.

The OPEC secretary general does not wield any executive power, but is the cartel’s public face and frequently has to act as a diplomat to bring together the different, sometimes conflicting interests of the various member countries.  

For analysts, Barkindo’s death will not have an impact on OPEC’s strategy in the long-term.

“But in the short-to-medium run, it will increase uncertainty about OPEC’s next steps and add to the price volatility as he was a figure of unity for OPEC,” said Swissquote analyst Ipek Ozkardeskaya. 

Spi Asset Management analyst, Stephen Innes, described Barkindo as “a very important figurehead and a stabilising force behind OPEC.” 

“But his death is unlikely to change OPEC direction despite more outside politics entering the picture,” the expert said, predicting that his successor, Haitham Al-Ghais “augurs for the status quo given Kuwait close ties with Saudi Arabia, which wields the most influence” within the group.

– ‘True friend’ to Russia –

In a message to Nigeria’s Buhari, Russian leader Vladimir Putin hailed Barkindo’s “important” and “personal contribution” to the creation of OPEC+, saying Russia would remember him “as a true friend of our country”.

Russian Deputy Prime Minister in charge of Energy, Alexander Novak, said Barkindo “defended a constructive dialogue with our country”.

Iraqi Oil Minister Ihsan Ismail said in a statement that Barkindo “wanted to strengthen OPEC’s role in stabilising global markets and addressing challenges affecting the oil sector and the global economy.”

Born on April 20, 1959, Barkindo graduated from Ahmadu Bello University in Nigeria’s Kaduna State with a degree in political science.

He later obtained an MBA in finance and banking in the United States and studied petroleum economics at Oxford.

He became Nigeria’s representative at OPEC in 1986. Starting from 1992 he occupied a number of positions within NNPC, including as its head from 2009 to 2010. 

burs-jza/rl

Amazon Prime customers in the United States will be able to receive a year of free restaurant delivery through Grubhub+ under a deal announced Wednesday by Just Eat Takeaway.com.

Prime members will have access to hundreds of thousands of restaurants on Grubhub, the American affiliate of Anglo-Dutch company Just Eat Takeaway. 

The deal should expand Grubhub+ membership while having a neutral effect on 2022 earnings, Just Eat Takeaway said in a news release. In exchange, Amazon will receive warrants for two percent of Grubhub’s common equity, with the potential for up to 13 percent more of Grubhub equity, depending on the number of new customers added through the venture.

The Amazon venture “will help Grubhub continue to deliver on our long-standing mission to connect more diners with local restaurants,” said Grubhub Chief Executive Adam DeWitt. “Amazon has redefined convenience with Prime and we’re confident this offering will expose many new diners to the value of Grubhub+ while driving more business to our restaurant partners and drivers.”

In April, Just Eat Takeaway said it was considering either selling Grubhub or a venture with a strategic partner following criticism from some shareholders that it should focus on Europe.

Just Eat Takeaway bought Grubhub in 2020 for $7.3 billion. The US wing of the company lost 403 million euros last year.

Just Eat Takeaway said Wednesday it continues to “actively explore the partial or full sale of Grubhub,” adding that there was no certainty a deal would happen.

Shares of Just Eat Takeaway surged around 20 percent to 16.46 euros. Shares have fallen more than 66 percent since the beginning of the year.

Fuel prices soared in Ethiopia on Wednesday after the government reduced subsidies, adding to economic hardship for people already struggling with high inflation.

The price of petrol at the pump jumped almost 30 percent to 48.83 biir (about 94 US cents) while diesel went up almost 40 percent to 49.02 birr under the new price regime that will run to August 6, the trade ministry said.

The federal government plans to lift fuel subsidies progressively, according to the Addis Tribune business newspaper.

Prices of fuel, food and other basic goods have rocketed globally because of the Ukraine war, badly hitting vulnerable countries in Africa and elsewhere.

The trade ministry said the cost of fuel for Ethiopian consumers should be almost double if it was calculated on current global prices.

“But considering the state the country is in, the government is covering 75 percent of the (price) difference while it was decided that the remaining 25 percent would be transferred to consumers,” it said.

The country of more than 110 million people has seen inflation hovering at around 35 percent over the past six months, with food prices in particular registering a sharp rise.

European stock markets rebounded on Wednesday, recovering some ground following sharp losses the previous session on fears of a global recession.

Oil prices recovered slightly, but WTI remained under $100 per barrel.

The euro hit a fresh 20-year low point under $1.02 — the European single currency fast closing in on parity as traders eye recession for the eurozone and aggressive interest-rate hikes in the United States to combat decades-high inflation.

“Worries about a big global slowdown are still gripping financial markets and that nervousness is unlikely to dissipate any time soon,” noted Susannah Streeter, senior analyst at Hargreaves Lansdown.

Crude futures had slumped nearly 10 percent Tuesday, while Europe’s main stock markets lost about three percent.

But on Wednesday, London’s benchmark FTSE 100 index was up 1.8 percent around midday — and the pound was mixed against main rivals — after UK Prime Minister Boris Johnson was rocked by the resignation of finance minister Rishi Sunak.

“Political risks do not seem to be having a major impact on UK assets,” noted Markets.com analyst Neil Wilson.

“There are far too many bigger things on our minds right now — inflation, the economy slowing down, strikes.”

Britain is in the midst of nationwide strikes — affecting in particular the transport sector — as wages are eroded by the rocketing inflation.

Britain’s health secretary, Sajid Javid, joined Sunak in resigning Tuesday, with both ministers saying they could no longer tolerate the culture of scandal that has stalked Johnson for months.

The embattled prime minister moved quickly to replace them, picking Iraqi-born Nadhim Zahawi as his new chancellor of the exchequer, who steps up from his role as education minister.

Elsewhere Wednesday, Asian equity markets closed mostly lower amid a fresh flare-up of coronavirus cases in parts of China that has seen some cities locked down as part of officials’ zero-Covid policy.

Investors are meanwhile growing increasingly concerned that sharp interest rate hikes could trigger a global recession.

Sentiment was slightly boosted by speculation that US President Joe Biden could remove some tariffs on Chinese goods.

– Key figures at around 1100 GMT –

London – FTSE 100: UP 1.8 percent at 7,149.18 points

Frankfurt – DAX: UP 1.5 percent at 12,589.97

Paris – CAC 40: UP 1.6 percent at 5,890.19

EURO STOXX 50: UP 1.6 percent at 3,413.27

Tokyo – Nikkei 225: DOWN 1.2 percent at 26,107.65 (close)

Hong Kong – Hang Seng Index: DOWN 1.2 percent at 21,586.66 (close)

Shanghai – Composite: DOWN 1.4 percent at 3,355.35 (close)

New York – Dow: DOWN 0.4 percent 30.967,82 (close)

Euro/dollar: DOWN at $1.0199 from $1.0266 on Tuesday

Euro/pound: DOWN at 85.55 pence from 85.85 pence

Dollar/yen: DOWN at 135.41 yen from 135.87 yen

Pound/dollar: DOWN at $1.1921 from $1.1956

Brent North Sea crude: UP 1.1 percent at $103.91 per barrel

West Texas Intermediate: UP 0.3 percent at $99.76 per barrel

OPEC Secretary General, Nigeria’s Mohammad Barkindo, has died unexpectedly at the age of 63, it was announced on Wednesday, leaving the oil cartel without a head at a tumultuous time for the markets.

Barkindo had headed the Organization of the Petroleum Exporting Countries since 2016 and was scheduled to be replaced by Kuwait’s Haitham Al-Ghais next month. 

Under his stewardship, the cartel forged ties with 10 other oil-producing countries, such as Russia, to form a wider group known as OPEC+ in a bid to better tame global oil prices, rocked by the challenges of the coronavirus pandemic and more recently the war in Ukraine.  

“We lost our esteemed Dr (Mohammad) Sanusi Barkindo. He died at about 11:00 pm yesterday 5th July 2022,” the Nigerian National Petroleum Corporation’s chief executive Mele Kyari tweeted, without providing any further details about the circumstances of Barkindo’s death.

“Certainly a great loss to his immediate family, the NNPC, our country Nigeria, the OPEC and the global energy community. Burial arrangements will be announced shortly,” Kyari wrote.

“This tragedy is a shock to the OPEC Family,” Vienna-based OPEC tweeted.

“We express our sorrow and deep gratitude for the over 40 years of selfless service that… Barkindo gave to OPEC. His dedication and leadership will inspire OPEC for many years to come.”

Only a few hours earlier, Barkindo — who had not shown any sign of being ill — had met Nigerian president Muhammadu Buhari in Abuja, where Buhari praised Barkindo’s “distinguished achievements at OPEC. 

– ‘Trailblazer’ –

“You were able to successfully navigate the organisation through turbulent challenges,” Buhari had said.

In a statement, OPEC expressed its “immense sorrow and sadness” at the news, describing Barkindo as “a trailblazer widely admired and respected throughout the globe. A dear friend to many.”

Born on April 20, 1959, Barkindo graduated in political science and completed his studies in Oxford and Washington. 

He became Nigeria’s representative at OPEC in 1986. Starting from 1992 he occupied a number of positions within NNPC, and took over as the oil major’s chief executive in 2009/10. 

The OPEC secretary general does not wield any executive power, but is the cartel’s public face and frequently has to act as a diplomat to bring together the different, sometimes conflicting interests of the various member countries.  

For analysts, Barkindo’s death will not have an impact on OPEC’s strategy in the long-term.

“But in the short-to-medium run, it will increase uncertainty about OPEC’s next steps and add to the price volatility as he was a figure of unity for OPEC,” said Swissquote analyst, Ipek Ozkardeskaya. 

Spi Asset Management analyst, Stephen Innes, described Barkindo as “a very important figurehead and a stabilising force behind OPEC. 

“But his death is unlikely to change OPEC direction despite more outside politics entering the picture,” the expert said, predicting that his successor, Haitham Al-Ghais “augurs for the status quo given Kuwait close ties with Saudi Arabia, which wields the most influence” within the group.