RaptObserver:
as for the four garage u referred to as refinaries, I didn't factor them in because the re nothing but mere rat houses. Dangote refinery is the only fisible refinery we can discuss and even plan on. As for Buhari, he will give account of his stewardship someday. He is not untouchable.

CanadaOrBust:


Elementary economics: if u produce a lot of something, the higher the price the better for u

SenecaTheYonger:


I know people that school in the NOrth, parricularly Maidugury. In fact, there are bloody stories from there that don't even make the news. If you're somebody with even below average IQ, you should know that for every violence or crime reported anywhere in Nigeria, 5 or more of the same crime goes unreported.

But I guess we should just ignore all the credible news sources because if they're not hyping this govt., it must be fake news.

RapistOnBail:
Have you heard something like " There's always an opportunity in disguise from every Bad Situation? "

Good day!

SenecaTheYonger:


Yeah, the mortuary business in the North must be booming right now. Such a Morbid mindset.

georgeiyke009:


And also cut cost of governance. Even the money was expected from China and I not sure they would be giving anyone any money anytime soon. The only thing is to cut spending

SenecaTheYonger:


Do you not know the meaning of plummet?

sulaak:


If they don't have incoming funds, the government will be force to cut the cost of governance, all those loans to pay for luxury cars will have to be paid back.

This is the best News for Nigerian, the oil well is dry, the government will now have to increase taxation and depend on the people instead of IOC.

CanadaOrBust:


Ignorance. It is VERY BAD for US economy. US is by far the world’s greatest producer of oil. In fact there are speculations they did this partly to hurt US economy

chosenwan1:
loool, you have no idea. Those leaders do NOT care if a barrel sells for 1 dollar. You just don't understand how wicked those people are.

Oracle23:


The U.S are not reliant on crude oil like nigeria.

Their citizens n businesses will do well this period because the price of gasoline n diesel will fall heavily in America

Sunnycliff:


Can Fashola say that again?

sulaak:


Nigeria was in trouble in 1957 when oil was discovered, this is a blessing.

hisgrace090:
Uniting factor of Nigeria plumetting.

Falls one Nigeria believers will hate this news more than those that have the oil itself.

sholatech:
Well, Nigeria Government will save billions in oil subsidy funds. However, our foreign reserves will be adversely affected.

sulaak:


One of the first requirement of IMF is SAP, cut wasteful expenditure, maybe that potential $500 million for NTA will be cut. Damn I am excited for Nigeria. Now the government has to start governing.

sholatech:
Well, Nigeria Government will save billions in oil subsidy funds. However, our foreign reserves will be adversely affected.

horsepower102:
Great news

It will even go down more.

Soon NNPC will be as useless as NITEL.

Everyone should go and develop their land with their hard work instead of waiting for oil revenue stolen from other people’s land.

CanadaOrBust:


Ignorance. It is VERY BAD for US economy. US is by far the world’s greatest producer of oil. In fact there are speculations they did this partly to hurt US economy

SenecaTheYonger:
Oil price fall is good for the US economy but bad for countries like Nigeria whose economy runs on oil export.

SpecialAgent:


As long as they don't force us to devalue our already shitty currency, then am game

RapistOnBail:
I could sense a lack of self confidence and also a BLAME game from you.

Believe it or bad, the north has some of the sanest climate in Nigeria. You wouldnt understand this if your brain has been programmed to believing on a General false Assumptions

InvertedHammer:

/
It has nothing to do with US. It is between Russia and Saudi Arabia. Russia didn't want to play ball at the last OPEC meeting and Saudi decided to give huge discount in prices. And here we are. US economy is not hugely tied to oil export like Russia and Saudi Arabia. A country like Nigeria is justa mere spectator.

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Oil prices plunged 30% in early trading after OPEC’s failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it reportedly gets set to ramp up production, leading to fears of an all-out price war.

International benchmark Brent crude futures plummeted 30% to $32.05 per barrel. U.S. West Texas Intermediate crude dropped 27% to $30 per barrel, its lowest level since Feb. 22, 2016.

“This has turned into a scorched Earth approach by Saudi Arabia, in particular, to deal with the problem of chronic overproduction,” Again Capital’s John Kilduff said. “The Saudis are the lowest cost producer by far. There is a reckoning ahead for all other producers, especially those companies operating in the U.S shale patch.”

After the initial drop the losses were pared somewhat, with each contract trading down slightly more than 21%.

On Saturday, Saudi Arabia announced massive discounts to its official selling prices for April, and the nation is reportedly preparing to increase its production above the 10 million barrel per day mark, according to a Reuters report. The kingdom currently pumps 9.7 million barrels per day, but has the capacity to ramp up to 12.5 million barrels per day.

“We believe the OPEC and Russia oil price war unequivocally started this weekend when Saudi Arabia aggressively cut the relative price at which it sells its crude by the most in at least 20 years,” Goldman Sachs analyst Damien Courvalin said in a note to clients Sunday. “The prognosis for the oil market is even more dire than in November 2014, when such a price war last started, as it comes to a head with the significant collapse in oil demand due to the coronavirus,” the firm added.

Goldman cut its second and third quarter Brent forecast to $30 per barrel, and said that prices could dip into the $20s.

Saudi Arabia’s price cut followed a breakdown of talks in Vienna last week. On Thursday, OPEC recommended additional production cuts of 1.5 million barrels per day starting in April and extending until the end of the year. But OPEC ally Russia rejected the additional cuts when the 14-member cartel and its allies, known as OPEC+, met on Friday.

The meeting also concluded with no directive about the production cuts that are currently in place but set to expire at the end of the month. This effectively means that nations will soon have free rein over how much they pump.

“As from 1 April we are starting to work without minding the quotas or reductions which were in place earlier,” Russian Energy Minister Alexander Novak told reporters Friday at the OPEC+ meeting in Vienna, adding, “but this does not mean that each country would not monitor and analyze market developments.”

Oil prices have already moved sharply lower this year as the coronavirus outbreak has led to softer demand for crude. A potential supply glut could pressure prices further.

“Both events – coronavirus and OPEC+ falling apart were not expected or priced into the market a month ago,” said Rebecca Babin, senior equity trader for CIBC Private Wealth Management. She said the key things to watch going forward are whether or not Saudi Arabia and Russia reach a “Hail Mary” deal, and if not, how quickly U.S. supply is shut in to support prices.

“There is still significant uncertainty, but the commodity market is not waiting around to find out if miracles can happen,” she added.

The unfolding of events is reminiscent of 2014 when Saudi Arabia, Russia and the U.S. competed for market share in the oil industry. As production escalated, prices plummeted. Some see prices heading back to those lows.

″$20 oil in 2020 is coming,” Ali Khedery, formerly Exxon’s senior Middle East advisor and now CEO of U.S.-based strategy firm Dragoman Ventures, wrote Sunday on Twitter. “Huge geopolitical implications. Timely stimulus for net consumers. Catastrophic for failed/failing petro-kleptocracies Iraq, Iran, etc - may prove existential 1-2 punch when paired with COVID19.”

But others, including Eurasia Group, believe that Saudi Arabia and Russia will eventually come to an agreement.

“The most likely outcome of the failure of the Vienna talks is a limited oil price war before the two sides agree on a new deal,” analysts led by Ayham Kamel said in a note to clients Sunday. The firm puts the chances of an eventual agreement at 60%.

Vital Knowledge founder Adam Crisafulli said Sunday that oil “has become a bigger problem for markets than the coronavirus,” but also said that he does not foresee prices falling to the Jan. 2016 lows.

“Saudi Arabia can’t tolerate an oil depression – the country’s fiscal breakeven oil prices remains very high, Saudi Aramco is now a public company, and MBS’s grip on power isn’t yet absolute. As a result, the [government] won’t be so cavalier in sending oil back into the $30s (or even lower),” he said in a note to clients Sunday.
https://www.cnbc.com/2020/03/08/oil-plummets-30percent-as-opec-deal-failure-sparks-price-war-fears.html