Lord Browne: It's foolish to predict the oil price


Lord Browne Photograph: Bloomberg TV
Lord Browne, the former boss of BP, is discussing the situation on Bloomberg TV (who are all over the commodities story today)

He says he wasn’t surprised that Opec failed to agree any production cuts at its acrimonious meeting last Friday.

Opec is being consistent with the view that it will continue to maintain market share, keep producing, and see what other people do, explains Lord Browne, adding:

In the end it is about Opec. It is the only swing producer, and it’s looking to protect its market share.
John Browne (as he then was) ran BP from 1995 to 2007, during which time he saw oil rise from $10 per barrel over $100 per barrel.

And that taught him that it “really is impossible” to predict how the price of crude will change.

It is a foolish business to be in.
The problem, he continues, is that when the price of oil goes up, people think that everything is possible.

So they stop thinking about the price of a barrel of oil and start fixating on the volume of a barrel of oil, trying to get as much out as fast as possible.

So, could oil hit $20 per barrel, asks host Jonathan Ferro:

Nothing is impossible, in the short term, Browne replies.

In the long run, $20 is probably wrong, but that’s as far as I’d go.
Updated at 10.01am GMT

it is well.

hinwazaka:
I don't like to write or discuss economic jargons with just every layman out there. But I feel the lunacy and silly nature of this propaganda attempt by the APC will drag us into the black hole. The budget was fixed at a benchmark of $38, right. Okay read this excerpt from Lord Brown today, and see where this government is taking us to



Note the above excerpt was taken from the Guardian newspaper after US oil prices hit its worst low since 2009
http://www.theguardian.com/business/live/2015/dec/08/commodity-crunch-mining-shares-oil-chinese-trade-shock-business-live#block-5666a3b1e4b08025599093cc

seunmsg:
So, because one Lord Browne gave an inconsequential interview in 2009, Nigeria's government should stop fixing crude oil benchmark in preparing the annual budget or what?

Bevista:
To be honest, if you had any modicum of economic intellect, you wouldn't post such trash. Simply because you already have a prejudiced opinion, you now go out to find any information that will validate your prejudice. You failed woefully this time, man.

Is the new government predicting oil price? Do you have any idea of what they call ESTIMATE in accounting? Are you suddenly becoming aware of this method of budgeting after your hero lost?

Try and avoid discussions on the ECONOMY and focus on your IPOB agenda. I am even ashamed of myself for condescending so low to respond to this junk of a post.

mdbissalla:
And so?
You call d budget "stupidity"... Pls:
What do expect the government should do?

Did you understand the direction of government in that budget?

How do you wish to contribute or assist or advice to see that the budget is not a " stupidity " as you call it?

NIGERIA SHALL BE GREAT ONCE AGAIN

kolaaderin:
Eleyi gidi Gan ooo, eeyaaa!!! oma see ooo, this government will be saddled with the responsibility of rehabilitating people like this OP who are seriously lost in the act of wailing uncontrollably.

TechRev:


Nigeria was never great. If it was tell us when and what made it great. Stop deceiving yourself.

bokohalal:
Op doesn't know the meaning of GOVERNMENT BUDGET.