jstbeinhonest:



Oil production is far from being shortened,It would get even worse once America develops a technology to explore their shale oil at a cheaper price. While it is true that oil price might still rise,it is important to note that the world is looking away from oil to cheaper sources of energy,trust me oil might never go back to its days of $70+ per barrel.

Bollinger:


That makes no sense. The U.S has oil and have recently stepped up oil exploration which means they don't need to buy as much as they used to. Also, they've scaled down their wars. It's simple economics bro. When demand is down, price will drop.

omenka:
Very bad news for oil dependent economies, worst of all Nigeria since we refused to save enough to use as buffers under such a situation.

Now Iran would flood the IOM with its crude driving oil prices even lower- I foresee it dipping below $10pb.

9jacrip:


Undersupply when the US is aggressively pushing the shale to the world and has started exporting?

ladyF:
The oil price would certainly come back up, it's not the first time we are seeing a nosedive like this. World supply is getting shortened as some production facilities have been shut. It's only a matter of time before the market would start experiencing an undersupply that will drive the prices up eventually. Simple economics!!!!

[size=15pt]LadyF[/size] is here again

9jacrip:



Indeed it makes no sense but you didn't say anything contrary.

omenka:
Well, I would have been all for the temporary fall in oil prices as is currently being witnessed for reason that it would give our government the impetus to diversify our economy and once and for all, put an end to this single commodity based economy.

But previous governments never had the foresight to sufficiently save forex upon which we could fall back when the need arises. Same savings we would have used to invest in other profitable sectors especially agriculture. As things stand, we don't have all the money we need to do so, not even sure we have half of it, yet the price of oil continues its downward spiral.

I have no idea how else to fix this problem than borrowing, which means further plunging the economy into debt. Our only saving grace is that we have a government we can trust to deploy borrowed funds appropriately- it is the most critical index that would decide what becomes of our economy/country after borrowing.

God help us.

snailspeed:


You mean deploy the borrowed funds to update a website for N795million? I see why you can trust them then. Must be seonethimg to do with Aisha's rice

ladyF:

Ask the US shale companies their financials for last year and how many percent reduction in production facilities they experienced. All I'm saying is it is not sustainable. Price will go up eventually.

Bollinger:


It does. All i did was summarize your intent. You made it sound like the U.S went out deliberately to sink the price of oil. That was not their intent. That was why i said it is simple economics. They stopped buying, price dropped. Too simple.

9jacrip:


I saidI read it somewhere.

How do we figure out if it was their intent or not?

What if they are interested in flooding the market with shale and pulling the world towards it?

What if the sink in crude price is in order to capture and monopolize the market?

Observant:


PMB was voted in at the wrong time, he would have been the best person to manage our economy at the time of oil boom. At least we would have been sure of good federal roads as contractors won't dare embezzlement such funds. But now with an all time low of crude with no gain at site there is very little he can do.

I don't consider him one to be economically savy to pull the country out of this mess. Not the less I am happy the oil is fading to nothing so Nigeria can reconstitute itself for better productivity.

omenka:
They said you are intelligent- now I see how intelligent you are. Look at the discussion going on and look at your contribution.

Such a pity. The apple indeed doesn't fall far from the tree.

Good luck.

Akathriel:
Forget about Oil, this is a very good news. Israel is about to become a Nuclear wasteland.

@Palestine - Get ready to be independent!

ladyF:

the low prices is driving a lot of companies out of business. A lot are making losses, no new exploration. At the end of the day, with this current prices, it will get to a point where a lot of people will stop production because it is not sustainable, hence supply will certainly fall.

The truth is the low oil prices cannot last forever. Everybody is bearing the brunt, big & small companies inclusive. It is just not sustainable.

Bollinger:


You just proved my point.

omenka:
Very bad news for oil dependent economies, worst of all Nigeria since we refused to save enough to use as buffers under such a situation.

Now Iran would flood the IOM with its crude driving oil prices even lower- I foresee it dipping below $10pb.

bankylan:



Try to have some depth bro...don't be enslaved by this govt....be objective and take time to read more.....

sammhi:

how much will you have saved? ode..instead to say we should have diversify since but is still not too late...PMB shld lwav all these probes and dedicated himself to moving the country forward.....20% of his time for probe and 80% for governance..not present situation where 100% is for probe..

Bollinger:

You just proved my point.

omenka:
The bold has always been my regret as well. I couldn't stop imagining what might have been had we achieved this feat of regime change in 2011!! Now we have a full blown crisis in our hands.

Just earlier this evening, watching cnn make analysis of the ramifications of the deal, they stated Saudi Arabia has already started a regime of price reduction for the oil it sells to the US to counter the impending competition from Iran!! Imagine that!! Imagine the implication for global oil prices in general and Nigeria in particular.

Honestly, our only saving grace now is agriculture and mining. We need to run back to the drawing board asap.

snailspeed:


You don't like that line? Does it strike a cord? You know, they say that an old woman is never comfortable when dry bones are mentioned in a story?

ladyF:
The oil price would certainly come back up, it's not the first time we are seeing a nosedive like this. World supply is getting shortened as some production facilities have been shut. It's only a matter of time before the market would start experiencing an undersupply that will drive the prices up eventually. Simple economics!!!!

[size=15pt]LadyF[/size] is here again

9jacrip:


I read somewhere (I can't recall) that the U.S is mostly responsible for the nosedive of crude oil (with the severe push given to shale). I suppose having been able to sink the price of crude oil to a considerable 'low', this move is in order to throw the knock out punch which will then see oil price sinking to as far as $10 if not below.

The 'likely' eventual but slow end of oil dependent states.

jstbeinhonest:



Oil production is far from being shortened,It would get even worse once America develops a technology to explore their shale oil at a cheaper price. While it is true that oil price might still rise,it is important to note that the world is looking away from oil to cheaper sources of energy,trust me oil might never go back to its days of $70+ per barrel.

omenka:
You are making a fool of yourself. Try and say something reasonable- impress your fans at least. Stop attacking me personally.

Can't you manage to at least address a single point raised by discussants?? Are you that sluggish upstairs?? How has both comments you've made enriched the discussion here??

Well, I guess I shouldn't be surprised after all. It is just typical of you lot. You can't but throw inane tantrums when confronted with superior arguments. Do as you please, na your palaver.

Good night.

mazeltov:
I don't have problem with this news. We all know that one day, the sanctions against Iran would be lifted. Of course the sanction can't everlasting as some people think.
My concerns focus on the weakling 'OPEC' organisation.
Honestly since the creation of Opec, I am yet to see its usefulness to the global oil market. I thought Opec would serve as a regulator to regulate these gluts. Sometimes we need to leave the players and blame the coach.
Opec is just too weak to control the output of crude oil into the global market. At least, Opec should be strong enough to impose sanctions on some giant countries like United States or even Venezuela if they outstep their production.