Orikinla:
[size=28pt]EVERY MEMBER OF OPEC CAN INFLUENCE THE PRICE OF OIL AND WHAT GMB MEANT IS NOT OUT OF SYNC WITH WHAT OPEC CAN DO.

IDI-OTS ARE JUST MISINTERPRETING IT OUT OF CONTEXT SINCE YOU DON'T UNDERSTAND ENGLISH. [/size]

Prof keep teaching us English. Shame on you and your level of education.

brownlord2:
The man has got nothing up there.

Go to school , he no gree .

# pathetic

Larow:
Buhari is our man! He might be a weak Abo.ki but he has supported himself with one of naija's best brains as his vice! Isn't dat preferred to d combination of two I.di.ots who knows nothing. Gej + sambochukwu=brainless

Can I hear you again You want to vote for another weak leader How will he fight corruption if hes week!

Ahmeduana:

WHICH ONE YOU DEY SELF? WE GO SEE YOU HERE TODAY, SEE YOU THERE TOMORROW.

Do I live in your street?

[size=18pt]How does OPEC stabilize the market price of oil?

Runner21
It stabilizes the market price of oil by makings sure that it goes through when it convinces some one to buy it

OPEC : Oil market stability: the role of OPEC

A Speech by Dr. Edmund M. Daukoru, President of the OPEC Conference, Minister of State for Petroleum Resources, Nigeria, to the 28th Oxford Energy Seminar, Oxford, England, 8 September 2006

[Slide 1]
Excellencies, ladies and gentlemen,

Thank you for inviting me to Oxford to deliver this address on oil market stability and the role of OPEC.

Over the past three decades, the Oxford Energy Seminar has carved a niche for itself in the international energy community as a venue for high-level debate, in camera, on topical issues affecting the industry. Without exception, debate at this renowned seminar is fuelled by contributions from politicians, industrialists, academics and other experts of the highest standing and with vast reserves of knowledge and experience, and so I feel especially privileged to be invited to address such an accomplished gathering today.

Indeed, when we look at the present situation in the international oil market — with the high level of price volatility that has characterised it over the past two and a half years — then clearly such fora as this come into their element!

[Slide 2] On several occasions during this period, crude oil prices have reached record highs, and I am sure some seasoned market-watchers in this room are themselves wondering where and when prices will peak, or whether they have done so already.

Our predecessors had similar difficulties with crystal ball-gazing! A quarter of a century ago, some acclaimed international analysts were predicting crude oil prices of US $100 a barrel by the year 2000. Instead, prices collapsed below $10/b in the mid-1980s, less than half a decade later. Similar lows occurred a decade after that, in the wake of the economic downturn in south-east Asia. Even today’s record levels are well below three-quarters of the way towards the predicted $100/b mark!

We are, of course, referring to nominal prices here. In real terms, taking into account inflation and currency fluctuations, prices are still below levels reached in the early 1980s. It is important to be aware of this.

However, while record oil prices may capture the imagination of the public at large, it is, arguably, volatility that is of most concern to the industry.

If the goalposts are constantly shifting — not just from side to side, but also backwards and forwards, and perhaps even up and down! — then it becomes really difficult to both play the game today and to make rational decisions for tomorrow.

As is well known, the volatility, that still afflicts us today, was first widely perceived in the spring of 2004, and this followed several years of relatively high stability, very much encouraged by OPEC’s production agreements of the time.

[Slide 3] The initial reaction was that something strange is happening to the market. Is this just a temporary blip, and, if so, how temporary and how extensive? Or are more fundamental factors at play? If so, what are they and how deep-rooted are they? How long will it take the market to accommodate the new fundamentals and return to a workable equilibrium? At what price level and at what supply and demand level will this workable equilibrium be?

[Slide 4] How should producers — those that have the capability to increase production capacity — react to the new dynamics, in an industry where the upfront investment is large and the lead-times are long? Should they hold their breath a little longer to see how the situation transpires, should they take, so to speak, lightweight actions to tackle a short-term development, or should they adopt rather different measures to handle a more fundamental, longer-term phenomenon? In pondering thus, we must remember that these producers face a huge burden of risk in investing heavily in capacity that may not be needed.

Such issues as these faced OPEC’s Oil Ministers when they met in Vienna on 31 March 2004. To add irony to the situation, this was happening at a time when the market appeared to be well-supplied with crude and the market was moving into the traditional lower-demand season of the year.

Furthermore, we must be cautious here in Oxford today about making judgements with the benefit of hindsight. Our closing press release in March 2004 stated that the “high oil price levels remain predominantly a consequence of long positions of market speculators in the futures markets coupled with a tightening in the US gasoline market in some regions, and exacerbated by uncertainties arising from prevailing geopolitical concerns rather than purely a reflection of supply/demand fundamentals.” It added that “structural problems and bottlenecks (were) affecting the downstream oil industry, which have been contributing to recent price movements.”

We can see here that there have been some shifts in emphasis in analysis carried out since that time about the causes of the volatility in early 2004. For example, more weight has since been placed on the impact of tightness in the downstream sector in consuming countries, which has been very much due to a lack of timely investment and increasingly stringent product regulations. Interestingly, it has emerged that, during the past two and a half years, downstream price volatility has been having a “pull” effect on upstream price volatility, rather than the more usual reciprocal “push” effect of the upstream on the downstream, as one would expect from classical economic analysis.

[Slide 5] Also, subsequent analysis has highlighted the big effect of the unexpectedly high levels of oil demand from the rapidly growing emerging economies in Asia, especially China and India, as well as from the North America. In 2004, global oil demand surged by 3.0 million barrels a day, a level of demand growth not seen since the 1970s.

[Slide 6] Furthermore, the volatility facing the oil industry in spring 2004 had analysts contemplating on its possible impact on the global economy as a whole, due to oil’s leading role in the world energy mix. There was the obvious tendency to compare the rapidly developing situation with that of the 1970s. Subsequent analysis, however, has exposed major differences to three decades ago, with a greatly reduced impact on world economic growth and oil demand. Reasons include much lower oil intensities in consuming countries, higher taxation levels, greater efficiency, a more diverse energy mix and the fact that the transportation sector, with its low price elasticity, now has a much larger share of the international oil market. Fundamentally, the present situation is essentially demand-driven, resulting from the strong economic growth, rather than supply-driven, as was the case in the 1970s.

All of this emphatically underlines the benefit of stability to the oil market and further afield across the global economy, covering all foreseeable time-horizons. Stability begets stability. If stability could be achieved and sustained in its purest, most universal form, then it would clearly be a “win-win” situation for all the responsible parties in the oil industry. But stability must be worked on by those parties for the short, the medium and the long terms.

In addition to this, stability provides another very important benefit to OPEC Member States and other oil-producing countries, particularly those from the developing world, where petroleum export revenue can account for a very large proportion of total export revenue — about 73 per cent, on average, for OPEC in 2005. The revenue oil-producing developing countries receive from oil sales is essential for financing their economic and social development programmes, to an extent that may not be fully appreciated by industrialised nations. This is in addition to the part that must be reinvested in the upstream to meet rising demand. It is, therefore, in the best interests of these producing countries to ensure that every possible measure is taken to support market stability at all times, so that the optimal benefit can be derived from their finite oil resources and shared among present and future generations.

[Slide 7] This explains why OPEC is so committed to achieving and maintaining market stability, a commitment that goes back to its inaugural meeting in Baghdad in September 1960. OPEC’s very first resolution stated that “Members shall study and formulate a system to ensure the stabilization of prices.” [Slide 8] Several months later, this commitment was enshrined in the OPEC Statute, when it was first adopted in January 1961, and it has remained a key guiding principle of the Organization ever since: “The Organization shall devise ways and means of ensuring the stabilisation of prices in international oil markets, with a view to eliminating harmful and unnecessary fluctuations.”

It has been reaffirmed repeatedly in OPEC documentation over the years, notably in OPEC’s two Solemn Declarations, which concluded summits of Member Countries’ Heads of State and Government in 1975 and 2000, and, most recently, the Long-Term Strategy (LTS) OPEC adopted exactly one year ago. Indeed, the LTS is unequivocal in its views about oil price volatility, saying that this “renders all the more difficult the interpretation of price signals, whether they are an indication of structural change or a reflection of temporary phenomena, and thereby affecting the ability to support longer-term market stability.”

The LTS also emphasises the importance of fair prices, the security of regular supply to consumers and the security of world oil demand. This again elaborates upon the OPEC Statute: “Due regard shall be given at all times to the interests of the producing nations and to the necessity of securing: a steady income to the producing countries; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on their capital to those investing in the petroleum industry.”

[Slide 9] It also brings us onto the important issue of energy security, which is closely linked to market stability and has gained greater prominence on the international political agenda over the past year or so, in the wake of the recent market volatility. Energy security provided the central theme of the Tenth International Energy Forum (IEF) in Doha in April, it features prominently in the European Union’s Green Paper on a European Strategy for Sustainable, Competitive and Secure Energy, and it headed the agenda at the recent G8 Summit in St Petersburg.

Indeed, in the build-up to July’s summit in St Petersburg, there was an International Conference on Energy Security in Moscow in March, followed immediately by a G8 Energy Ministerial Meeting. In OPEC’s official statement to the Ministerial Meeting, we made the point that “the concept of ‘global energy security’ is so fundamental to life in the 21st century that every effort must be made to clarify its meaning, to gain a consensus on this and to ensure that its true principles are embodied in decision-making processes across the energy sector by at least the major players.”

We welcomed the broader-based approach by consuming countries to energy security — as opposed to merely supply security — that emerged in St Petersburg. At the end of the summit, the Chair stated: “We agreed that dynamic and sustainable development of our civilization depends on reliable access to energy. It is best assured by strengthened partnership between energy-producing and consuming countries, including enhanced dialogue on growing energy interdependence, security of supply and demand issues.”

The issue of security of demand is very important to OPEC and other producing countries. Security of demand must go hand-in-hand with security of supply as a means of achieving market stability, since, without the confidence that predictable, reliable demand for oil will emerge, the incentive to undertake the necessary investments can be significantly reduced.

Nevertheless, in spite of these positive developments at the G8 Summit, we feel, in OPEC, that more confidence could have been expressed by the participants at large about the willingness and the ability of oil-producing developing countries to service the growing world energy requirement in the years ahead.

So far, I have endeavoured to explain the importance of stability to the international oil market and the world economy at large, as well as OPEC’s unyielding commitment to achieving and sustaining market stability and security, from which all responsible parties can benefit. Let us now look at how OPEC goes about meeting this commitment.

A good place to start is with the present market volatility, which, as I have already remarked, has persisted for around two and a half years. I earlier tried to illustrate the mindset of OPEC’s Oil Ministers as the new situation began to unravel in spring 2004, referring to the OPEC Conference of March that year.


Read full report on http://www.opec.org/opec_web/en/994.htm

[/size]

berem:
Obinoscopy moved it to FP. A similar thread with different headline was on FP last month.

No going back Obinoscopy! If you like push all anti-Buhari threads to front page. Una plan don fail.

Incase I don't post any longer,know that I have been banned by Obinoscopy.

Lol.. They've ran out of armour.. They just have to recyle old threads to stay relevant and probably convince some ppl.

Selling a Bad Product like Jonathan is not an easy task..

Obinoscopy can't ban you Sis!! No Shaking!!

nduchucks:
Many GEJ nuts and fruit cakes, do not know the difference between local oil market and the international oil market.

Even a toddler understands the different and should not be spoon fed by a presidential candidate as to what the difference is.

HateRs 'goin hate anyway! If it'll make you people feel better, please relocate to Otuoke next month with your idol if you wish.



SAI BUHARI

What is dis one saying?....what determines the price of oil both nationally and internationally? Are we ready to buy our own oil at a very expensive price so that we can have money in government coffers to be spent on developmental projects? Or can we sell to the international community at the price we so desire for them to buy?

Oga, GMB is purely clueless and as much as I have been in support of APC in the past, they really got dis one wrong. Just because you want to gain aso rock powers doesn't mean you throw-in someone who lacks ideas for 21st century governance.

#can't wait for presidential debate
For now, my choice is still GEJ

Most of you here don't understand. Go and ask Gaddafi and Hugo Chavez how they stabilized oil prices in their countries & you'd see and understand that it takes a determined Leader to do great "unbelievable" things. Most of you don't understand anything about good leadership so what Buhari said sounds absurd to you guys.

#BuhariOsinbajo2015

*God Bless Nigeria.

Through out the first page... I did not hear sai buhari... Febuhari 2015 ... Chai buhari do misshoot

[size=15pt]When Buhari said oil price, he obviously means pump price within the nation.

The PDP agent that brought this to the front page again should be ashamed of himself.

"how much did Nwobodo steal that Buhari lock him up?" nothing will ever beat that. try harder [/size]

@Topic, but I thought Diezani Alison-Madueke also promised to stabilize oil price: http://www.frontiersnews.com/NG/?p=22099

So I wonder why the APC and PDP warriors are hyperventilating? This thread was pushed to the frontpage for nlers to discuss on how Buhari intends stabilizing oil market, not for APC and PDP warriors to hyperventilate.

Obinoscopy:
@Topic, but I thought Diezani Alison-Madueke also promised to stabilize oil price: http://www.frontiersnews.com/NG/?p=22099

So I wonder why the APC and PDP warriors are hyperventilating? This thread was pushed to the frontpage for nlers to discuss on how Buhari intends stabilizing oil market, not for APC and PDP warriors to hyperventilate.

Shows how clueless some PDP online sycophants can be.
So where are those ridiculing GMB. Its time to come out all guns blazing too on diezani or is she also as clueless as gej?

The man is correct now ,oil price can be stabilise in Nigeria with price reduction and working refinery .
I think what he meant was that Nigerians would enjoy the benefits of reduction in world price .
But as we have it now we pay higher price even when its imported for low .tomorrow they will tell us they pay trillions on subsidy

Buhari pls wake from your sleep, this type of empty promises was used on nigerians in the 90's.
the era politicians go around and make empty promises is gone, or maybe it still work for some abbokis

If he really said that then his illiteracy is worse than I thought.. Sucks sharing a country with these people

Buhari are u serious. ... ? Please can u solve global warming when u are done. The heat in lagos is to much

I believe these:
1.we ve seen d best of jonathan
2.it's ok to try any oda person,maybe shekau himself too
3.maybe buhari makes promises beyond him,he means well still and we can be sure he'd deliver all his realistic promises
4.lastly,nigerians are smarter @ dis pt than doing things d same way and expecting a different result;something must change

Obinoscopy:
@Topic, but I thought Diezani Alison-Madueke also promised to stabilize oil price: http://www.frontiersnews.com/NG/?p=22099

So I wonder why the APC and PDP warriors are hyperventilating? This thread was pushed to the frontpage for nlers to discuss on how Buhari intends stabilizing oil market, not for APC and PDP warriors to hyperventilate.

She meant that she "as the president of OPEC" would move to stabilize the price of crude oil during her tenure as president of the cartel. She wields the power (very little though) to influence other members of the cartel to cut supply and create scarcity in the global market.

This is in contrast to the stark ignorant comment made by Buhari who made no mention of how he intends to carry out his plan.

gunuvi:
Oro pesi je o. Oro di hun.. I no talk am say that man no fit change. Even all former head of states will never allow him come close to the stool as he is the most corrupt president we ever had but many people don't know cos of idi agbon. He is now claiming holier than thou.. Shame on all his fans.

SMH

Firefire:
Chai, military education cannot simply solve economic issues.


GMB u try, u go waka go OPEC go stabilise the price, a biii.

dat is y u fail exams in sch. What has OPEC got to do with the stabilizin our oil price internally?

hansad:
Those clamouring for Buhari for president are not doing so because they believe that Buhari can re-position Nigeria on a better route; they know that Buhari is not the messiah Nigeria needs;

they only want to use Buhari to achieve an aim: the SW believes that old Buhari shall rule for a short term and hand over to Osibanjo.

The far north wants to use Buhari to recapture power.

Gov Amaechi is looking for protection against his hatred for the Jonahs.

None, no Buhari follower does so because of love for Nigeria, take this to the mosque or church.

you have the keen insight of an eagle!

HONNESSTY:
dat is y u fail exams in sch. What has OPEC got to do with the stabilizin our oil price internally?

Have you watched the video clips? Help your future by watching it, you will thank me later.

Peace!

Doyin2:



You are the clueless one.This is what GMB said:

" I think it is absolutely necessary to make people accountable....we heard about the mismanagement of the oil industry which accounts for 95% of our earnings. Thus we need to stabilise the oil market because other sectors will take time. The immediate plan is to stabilise the oil market and (thus) stop wastages. But without accountability, even if oil sells at over 110 dollar per barrel, it will still mean nothing"

@op ,you are more clueless than the two(GMB &GEJ).

How can GMB stabilise oil market? Is it AKARA or groundnut that we are talking about?

you lack the fundamental understanding of what this thread is all about!

Obinoscopy:
@Topic, but I thought Diezani Alison-Madueke also promised to stabilize oil price: http://www.frontiersnews.com/NG/?p=22099

So I wonder why the APC and PDP warriors are hyperventilating? This thread was pushed to the frontpage for nlers to discuss on how Buhari intends stabilizing oil market, not for APC and PDP warriors to hyperventilate.

Guy, u should understand better. Diezani is OPEC president. She thought she could use her position to influence things. Is GMB also going to be OPEC president?
Doctokwus, you're even more clueless than GMB.

context reading is y'all problem. Buhari said that he would stabilize the oil pump price....in NIGERIA!

Unlike Jonathan's regime, 60 Naira today, 200 Naira the next day. smh.

Nairaland moderators now promoting falsehood. When did oil market become oil price? By market he probably meant getting new market for our oil as well as sanitising and making the local market more effective.
Seun please modify the topic, this is clearly intended to malign Genera Buhari and the APC.

kenny987:
Wow! He will stabilise oil prices...hmmm. How much is stable to him in the first place? It would appear that the title of 'clueless' has to pass from one person to another...#youknowwho!

He should probably stabilize the price to $10, so that prices of other things could fall by 100%. We are eager to see the greatest economists of 21 century in Buhari if he makes it to presidency in the end.

Ifeann:
Buhari are u serious. ... ? Please can u solve global warming when u are done. The heat in lagos is to much

heat in Lagos ke?

At this period of harmattan that we wake up so lately everyday since last week.

Blogs .. He'z a go....od man:-P

davitogreat:

Buharis interview was truly pathetic.

Nothing concrete was said by him....

This is the messiah people are calling for.

[size=20pt]listen from 1min 20sec [/size]


https://www.youtube.com/watch?v=Se5tpOLkUyU

He never said he would stablise international oil prices.

[size=18pt]He said we should do what we can to stablise the oil market (not prices) and eliminate waste. In other words wants to clean up and fix our internal oil market e.g. NNPC etc.[/size]

IleIfe2:
When Buhari said oil price, he obviously means pump price within the nation.

The PDP agent that brought this to the front page again should be ashamed of himself.

"how much did Nwobodo steal that Buhari lock him up?" nothing will ever beat that. try harder