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The Hype Around Dangote Oil Stock – What You Should Know Before Investing

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Global oil prices have a strong impact on oil stocks. Previous oil crashes severely affected several oil stocks. For example:   •  2014 – 2016: Oil crashed from $106 to $28 •  2020 COVID crash: Oil fell from around $60 to as low as $20 (and briefly to  – $37 in one futures contract)   This week, US Oil hit $100 and is currently trading around $99.  This rally has been triggered mainly by two major conflicts: •  The Russia – Ukraine war •  Escalating US – Iran tensions   These events have caused: •  Disruptions in oil supply •  Attacks on oil and energy infrastructure in Russia •  Sanctions on Russian oil •  Threats of closure of the Strait of Hormuz •  A US naval blockade   During the 2014 – 2016 crash, oil stocks and ETFs fell sharply. Examples include:   •  Stocks: Chevron, ExxonMobil, Schlumberger (SLB), and others •  ETFs: XLE (Energy Select Sector SPDR), United States Oil Fund (USO), and simil...

The Negotiation Table

The Negotiation Table I have spent years negotiating on behalf of brands, institutions, and businesses. One of the most underrated skills in drafting a mutual contract is the negotiation of interests. A giver and a receiver do not stand on equal footing. Yet a receiver who fails to represent their best—or close to best—interests is likely to leave the table disappointed. The negotiation table resembles a chess game. I call it the clash of interests.   First Rule: The Rule of Exchange Your ability to give must be accompanied by your ability to receive. Energy is exhaustible; balance therefore requires reciprocity. A brand owner seeking a developer has the ability to give monetary value. A developer, in turn, has the ability to give intellectual value. Their skill is their property, and the capacity to think and create is protected by copyright—so they also stand on the giving side. In the same sense, both parties stand on the receiving side. Establishing this recognition creates a w...

Considering supply in smart investment

​ The rise in demand for a product will generally lead to a rise in its price. However, this is not realistic when there is excessive supply. There are different types of supply: •   Total Supply  —  the maximum amount of the product that can ever exist (over a year, month, or the product ’ s lifetime). It can be fixed or flexible, depending on the company ’ s policy. •   Maximum Supply  —  the total amount the company allows to be released to the public (unrestricted and unreserved supply). •   Circulating Supply  —  the amount that is already in the market and available for trading. Example  –  Product Alfa •   Total Supply: 100 •   Maximum Supply: 80 •   Circulating Supply: 60 The difference between Total Supply and Maximum Supply is that the company may reserve part of the total supply (e.g., 20 units kept in its vault). The difference between Maximum Supply and Circulating Supply is that the company may hold back...

Demand and supply in Financial decision making

​ Ignorance of Demand and Supply is a silent financial destroyer People often ask one concept I consider while analyzing the financial markets.  Demand and Supply is never outlooked  Irrespective of the type of analysis, Fundamentals or technical analysis, regardless of the asset being analyzed, Crypto, forex, stocks, commodities, oil, goods or products. An important factor is Demand and Supply.  Understanding Demand and Supply will help you play safe(you know when to get in and when to get out), manage your risk, it enables you invest wisely while avoiding scams, rug pulls and securing your finance and portfolio.  What’s Demand and Supply?  How does it impact the markets?  The concept of demand and supply if not well considered, is a ticking bomb which can destroy or elevate your finances. The Key factor and one of its essentials is the ‘PRICE DETERMINATION’ attributes it possesses.  Demand means people are asking for the assets and are actually buyin...