http://news.yahoo.com/oils-bull-run-hides-deep-disconnect-crude-traders-145851012--finance.html

However, data from OPEC and the International Energy Agency show the world is still pumping 1.5 million barrels per day more crude than it consumes. Traders say they are seeing increased evidence of crude barrels struggling to find a home.

Traders in Azeri Light crude, usually one of Europe's favorite grades due to its high quality, said some 10 cargoes from the May tanker loading program are struggling to find buyers, just two days before June volumes are due to go into the market.

As a result, the Azeri price premium to benchmark dated Brent is the weakest since December, when it hit a five year low.

In the North Sea, Norwegian Ekofisk crude fell to its weakest since August last year due to a significant number of unsold May cargoes, despite June program already trading.

The worst situation, however, is in Angolan and Nigerian crude, which has struggled in the past two years due to the U.S. oil boom.

Traders said around 80 million barrels of Nigerian and Angolan crude oil are on the market with at least a dozen May-loading cargoes still available.

Indian refiners, which had bought large quantities of Nigerian oil in March and April, are now turning to cheaper Iraqi Basra and Venezuelan crudes.

"Near term oil market fundamentals continue to look dire, particularly in the Atlantic Basin, with Nigerian, Mediterranean and North Sea differentials all weak," analysts from London-based Energy Aspect consultancy said on Wednesday.


"In the short-term, futures prices do not necessarily reflect accurately the physical market."


The deep disconnect between the oil futures and physical markets looks similar to the events of June 2014 when the physical market weakness became a precursor for a futures price crash.

The minister emphasized that managing the economy since the crash in oil prices had been very tough for her team which had to adopt various strategies to keep the economy running.

She said: “As you know, I have been honest with you since the current economic problems started. I would like to repeat: we have serious challenges, things have been tough since the beginning of the year and they are likely to remain so till the end of the year. We have serious challenges but we also have strengths and if we do the right things we can keep a steady course and emerge out of the current situation.

“As a result of the 50 per cent decline in oil revenues, the country has faced a difficult cash crunch and the Federal Government has focused on keeping the economy stable and the government running through a series of measures. We have front-loaded the borrowing programme to manage the cash crunch in the economy.

“In January we had a deficit in terms of the money we had and the expenditure we had to carry out. So we had to borrow to add to what we had. In February, it was the same.

“In March, we were able to have more internally generated revenue that enabled us to offset but in April, we had to borrow to cover up some gap. This is how we have been managing the economy on a month-by-month basis.”

Okonjo-Iweala said the Federal Government had already utilised more than half of the budgetary provisions for borrowing in the year, in the first four months to pay salaries and provide funds for overheads.


This is what NOI is trying to warn us about that there is serious fire on the Mountain!!

now nigerians can drink crude oil!

Africa's richest economy is borrowing money to pay salaries as it struggles through a "difficult cash crunch" brought on by halved oil prices, Nigeria's finance minister revealed.

The news comes as Nigeria prepares to welcome a new government at the end of this month and the country's naira currency remains in a slump, hovering between 180 and 220 to the US dollar. It was trading at 160 a few months ago.

Minister Ngozi Okonjo-Iweala tried to be upbeat in a speech on Tuesday after lawmakers approved the 2015 budget - revised three times because of slashed oil prices that provide 80 percent of revenue for the government of Africa's biggest petroleum producer.

She said "revenue challenges" had prohibited the release of any funds for capital expenditure this year.

http://www.aljazeera.com/news/2015/05/150506055148505.html

Yet our bros went on a crazy spending spree to buy a second term

Aunty Ngozi, why didn't you tell him? You left him to be forming 'omo baba olowo', now you're warning us? Ehn??

OBJ left almost zero debt plus reserves of over $40b. Even sickly yaradua built on the reserves OBJ left. Bros sold oil for record prices yet depleted the reserves even before oil prices fell......its sad....very sad where GEJ took us.

All Nigerians will bear the brunt because "when your crippled relative decides to use a laxative, it becomes the problem of the entire family to ensure cleanup"

APC and PDP, all Nigerians, the yawah don done. The year is truly going to be tight.....very tight for the country.

We must find a way to reenergise our refineries so we can consume the crude ourselves.......there's no other way to avoid unsold cargoes

Now we will see who the real parasites are.
*gathering my farm tools*

Anytime GEJ's name or his government is mentioned, I remember Nigeria's "dark past"... He's bad news to Nigeria. Transformation my foot!

Shell has declared force majeure on exports of Nigeria’s Forcados crude oil stream, a spokesman for the company said on Wednesday.

It declared force majeure on the evening on May 5 following “a series of leaks” in the Trans Forcados pipeline that brings the oil to the export terminal. The pipeline itself is operated by the Nigerian Petroleum Development Company (NPDC).

Several cargoes of Forcados for May loading were still on offer, with around 189,000 barrels per day (bpd) scheduled for export in six cargoes. The June export programme, with a total of 158,000 bpd, had not yet started trading, sources said.

An overhang of light sweet crudes in the Atlantic Basin has depressed differentials to dated Brent and limited the impact of recent supply disruptions on some West African crude oil grades.

http://nairametrics.com/bad-news-shell-says-it-cant-export-crude-from-forcados-oil-stream/

This is one of the best news i have heard this year.
I wish our incoming government will get into agriculture.

Why i said this is a good news is because it will make us if we are serious to focus in other areas other than oil.

Fo over 50years our presidents focused more on oil and killed every other sector. The north & the west bough over all oil wells in the south just to make sure that they have power (money) more than anyone else.

GEJ came into power & focused most of his energy creating a condusive agriculture environment in the North, but the north paid him back by sending him packing. I wish GMB will forget party politics & go ahead to implement GEJ‘s policy in agriculture because that policy has made so many states especially none oil producing states to stand up and take agriculture to a different level.

I pray that oil prices keep going down, so that we can leave our comfort zone & enter into our action zone.

Every state in Nigeria is well blessed agriculture wise. If every state takes agriculture serious it will then mean that we must practice forced resourse control. I say this because, agriculture unlike crude oil will be maneged by individuals & states that owns it unless those ones they do in colabo with the FG.

It will bring in a forced “true federalism“ (financial wise) also because states will only pay tax to federation account. It will make states instead of being beggers the way most do now, they will all become givers. Federal government will now depend largely on the states to survive.

This will make the office of the president even less atractive(my opinion).

This is a very good & encouraging news to me... I wish we have men & women in government who are not thinking of stabilizing world oil prize. Men & women who see blessing flowing out of this “course.“

We need to pray really hard for this country because we have really entered difficult times. May God help us through this cash crunch, may we not become like Venezuela.

Don't care about this news, all I want is the miracle worker must provide 3M jobs per year, N5,000 per month for each lazy parasite in this country, free food for children with irresponsible parents and the list goes on. Una neva hala.

theV0ice:
Yet our bros went on a crazy spending spree to buy a second term

Aunty Ngozi, why didn't you tell him? You left him to be forming 'omo baba olowo', now you're warning us? Ehn??

OBJ left almost zero debt plus reserves of over $40b. Even sickly yaradua built on the reserves OBJ left. Bros sold oil for record prices yet depleted the reserves even before oil prices fell......its sad....very sad where GEJ took us.

All Nigerians will bear the brunt because "when your crippled relative decides to use a laxative, it becomes the problem of the entire family to ensure cleanup"

APC and PDP, all Nigerians, the yawah don done. The year is truly going to be tight.....very tight for the country.

We must find a way to reenergise our refineries so we can consume the crude ourselves.......there's no other way to avoid unsold cargoes

even at the court of law, you can't say a mad man is responsible for his actions.

GEj na mad man...

atlwireles:
Don't care about this news, all I want is the miracle worker must provide 3M jobs per year, N5,000 per month for each lazy parasite in this country, free food for children with irresponsible parents and the list goes on. Una neva hala.

the worst part of your stupidity us that, whether u like it or not, APC go first use her first 4yrs finish. You not supporting her will still amount to nothing but crying inside, daily for 1460 days in the least

citizenisb:
We need to pray really hard for this country because we have really entered difficult times. May God help us through this cash crunch, may we not become like Venezuela.

Nigeria will be worse than venezuela. Anyone with common sense saw the storm coming. The sai crowd thought emperor Jonathan was stealing their money. Its their turn now, oya collect all those billions of dollars and spend as you want.

[s]

SLIDEwaxie:
the worst part of your stupidity us that, whether u like it or not, APC go first use her first 4yrs finish. You not supporting her will still amount to nothing but crying inside, daily for 1460 days in the least

[/s]

Jonathan is a curse to Nigeria

Ask an average Nigerian how to diversify the economy and his response would be - agriculture. Agriculture alone cannot save us, we must manufacture and duplicate things like China and do it very cheap too. The government must begin to give cheap loans and there must be incentives for entrepreneurs

[s]

atlwireles:


Nigeria will be worse than venezuela. Anyone with common sense saw the storm coming. The sai crowd thought emperor Jonathan was stealing their money. Its their turn now, oya collect all those billions of dollars and spend as you want.

[/s]very insensible post as usual. Where were the monies when crude oil was $150 per barrel. You just dey open mouht dey spew rubbish

[s]

SLIDEwaxie:
very insensible post as usual. Where were the monies when crude oil was $150 per barrel. You just dey open mouht dey spew rubbish

[/s]

dumbasses like you need a good tooth brush. Your breath stinks too much.

atlwireles:
[s][/s]

dumbasses like you need a good tooth brush. Your breath stinks too much.

See how a bastard(pdp member) replies post.

Lord have mercy on nigeria, this is bad news o.

abduljabbar4:

See how a bastard(pdp member) replies post.

Almajiri calling someone a bastard , go look for someone to murder for your god.

socialmediaman:
Anytime GEJ's name or his government is mentioned, I remember Nigeria's "dark past"... He's bad news to Nigeria. Transformation my foot!

Left for me the man's name should be erased from our history and whenever the years 2010- May 2015 come up,young ones and those unborn who didn't witness it should be told a fairy tale of how God sent a dark cloud that covered the entire country for those years, as punishment for our sins and lifted the cloud when we repented and vowed not to commit such heinous sins again.

hm, thought they were supposed to slow down production.

Nigeria’s weakening fiscal buffers as a result of the sustained low oil price may result in a current account deficit in the country’s balance of payments this year.

Managing Director/Head, Africa Research, Standard Chartered Bank, Razia Khan made the prediction during an interactive session with journalists in Lagos yesterday. She also forecast that the country would raise capital from the international debt market by the second half of the year to meet some of its obligations.

The economic analysts stressed that policy makers in the country failed to effectively utilise the opportunity created by the high crude oil prices in the past years, saying that it would be difficult for the country to rebuild fiscal buffers in a low oil price environment.

Khan however predicted that crude oil price would average at $76 per barrel by the second half of the year.

“We are going to see oil prices moving higher and there is going to be some overshooting in the second half of the year. We see oil prices averaging $76 per barrel over the course of this year and we think that this means that by the second half of the year, there is a likely hold that oil prices would be $80 to $90 per barrel.

“But that would be only short-lived. We shouldn’t discount the fact that this a very deliberate strategy on the part of Saudi Arabia in particular, to move away from the price targeting. So, for countries for Nigeria, the important take away is that we have moved away from that world of triple digit oil prices and what we would see going forward, is more like a double digits oil prices scenario. “We know about the extent to which Nigeria failed to capitalise properly in the boom years in terms of oil production when the oil prices were high. So, it is not going to be that easy necessarily given the demands from the fiscal side, to rebuild fiscal buffers in a low oil price environment,” she explained.

According to Khan, given the willingness by the federal government not to crowd out the domestic market so much with excessive domestic borrowing, the country might borrow from the international debt market before the end of the year.

atlwireles:
[s][/s]

dumbasses like you need a good tooth brush. Your breath stinks too much.

this is the part where your stupidity reeks up high and overflows the dump. Be sincere with yourself, how proud did u feel rhyming the nursery school line of bad breath even while it doesn't fit into this context?

I dont think Nigerians fully grasp the depths of economic crises we are in. We are even going to post a Current Account deficit this year. This is shocking. Expect more Naira devaluation when we go for foreign loans this year, so sad!!!

And with each opening day, things get wrong for this country. Our leaders ruined this country.

F.oolish Nigerian politicians...when Mrs Iweala was crying that we should save! save!! save!!! using the Sovereign wealth fund(SWF), governors like Amaechi, Oshiomhole & Ogbeni Raufu were busy shouting 'share all that accrues to the federation', today the rainy days have come & we are not prepared.

God will take care of His own in this country who never looted but have to bear the brunt of gross economic mismanagement.

Good news. Time to kw d hardworking people and the lazy parasites