The fall in oil production in Nigeria for
the month of February is partly
responsible for the rise in the price of
crude oil in the international oil market.
This is according to the Oil Market
Report (OMR) of the International
Energy Agency (IEA) for the month of
March.

The report also listed Iran and the
United Arab Emirates (UAE) as the
other countries that helped to boost oil
price through reduced output. It said
Iran’s return to the market had been
less dramatic than the Iranians said it
would be.

“In February we believe that
production increased by 220 kb/d and,
provisionally, it appears that Iran’s
return will be gradual,” the report
stated.

The IEA in the report, stated that
global oil supplies eased by 180 000
barrels per day (180 kb/d) in February,
to 96.5 million barrels per day (mb/d),
on lower OPEC and non-OPEC output.
“But production stood 1.8 mb/d above
a year earlier, as a slight decline in non-
OPEC was more than offset by OPEC
gains. Non-OPEC production in 2016 is
estimated to fall by 750 kb/d, to 57.0
mb/d, 100 kb/d less than foreseen in
last month’s Report.

“OPEC crude oil production eased by
90 kb/d in February to a still-robust
32.61 mb/d with losses from Iraq,
Nigeria and the United Arab Emirates
partly offset by a substantial rise in
flows from post-sanctions Iran. Saudi
Arabia, OPEC’s largest producer, held
supplies steady,” the report indicated.
Similarly, the IEA said non-OPEC
production also slipped by 90,000
barrels a day in February to 57.1
million barrels per day, and are
expected to fall by 750,000 barrels a
day this year and that total U.S. oil
output is forecast to decline by nearly
530,000 barrels per day this year, to
12.4 million barrels a day.

It noted that non-OPEC producers such
as those in the U.S. and Canada, who
have far higher production costs than
OPEC producers mitigated lower oil
prices by cutting production and
exploration. Such moves have had a
knock-on effect on lowering non-OPEC
oil supply.

“There are clear signs that market
forces … are working their magic and
higher-cost producers are cutting
output,” the IEA said.
It further pointed out that sharp
decelerations in demand growth,
particularly in the United States and
China, pulled global growth down to a
one-year low of 1.2 mb/d in the fourth
quarter of last year compared with the
year earlier, dramatically below the
near five-year high of 2.3 mb/d in the
previous quarter, adding that a gain of
around 1.2 mb/d is forecast for 2016.
While noting that international crude
oil prices had recovered remarkably in
recent weeks, the report warned that
this should not be taken as a clear sign
that the worst was over.

“It is clear that the current direction of
travel is the correct one, although with
a long way to go. Without an increase
in demand expectations, high-cost oil
suppliers will continue to bear the
brunt of the market-clearing process,”
the IEA said.

Oil prices fell at the beginning of this
year to below $27 per barrel, raising
concerns about the ability of Nigeria to
finance its 2016 budget which pegged
oil benchmark at $38 per barrel. With
price now at $40 per barrel, an amount
above the benchmark, there appears
to be light at the end of the tunnel.
Demand, supply to balance in 2017
Meanwhile, in spite of the ease in oil
production, the IEA report, however,
observed that output was still 1.8mb/d
above the level it was a year ago,
pointing out that there is still a glut of
about a million barrels per day, down
from about 2 million b/d a year ago.

The IEA, however, believes that
demand and supply should balance in
2017.
The body left its demand growth
forecast for 2016 at 1.2m b/d, driven
by India and smaller Asian economies.
China which was the pillar for global oil
demand for the last decade will see
growth of 330,000 b/d this year. This
compares to an average of 440, 000 b/
d for the last 10 years.

“We expect India and other smaller
non-OECD Asian economies and the
Middle East to provide most of the
2016 growth. The foundations for
global demand growth are sound, but
not rock-solid,” the IEA said.
The IEA cautioned that any further
rises in oil prices could dampen
demand growth.
“The foundations for global demand
growth are sound, but not rock-solid,”
the IEA warned.

And some people are saying baba's globe trotting is not yielding any result

jidoex66:
The fall in oil production in Nigeria for the month of February is partly responsible for the rise in the price of crude oil in the international oil market. This is according to the Oil Market Report (OMR) of the International Energy Agency (IEA) for the month of March.
The report also listed Iran and the United Arab Emirates (UAE) as the other countries that helped to boost oil price through reduced output. It said Iran’s return to the market had been less dramatic than the Iranians said it would be.
“In February we believe that production increased by 220 kb/d and, provisionally, it appears that Iran’s return will be gradual,” the report stated.
The IEA in the report, stated that global oil supplies eased by 180 000 barrels per day (180 kb/d) in February, to 96.5 million barrels per day (mb/d), on lower OPEC and non-OPEC output. “But production stood 1.8 mb/d above a year earlier, as a slight decline in non- OPEC was more than offset by OPEC gains. Non-OPEC production in 2016 is estimated to fall by 750 kb/d, to 57.0 mb/d, 100 kb/d less than foreseen in last month’s Report.
“OPEC crude oil production eased by 90 kb/d in February to a still-robust 32.61 mb/d with losses from Iraq, Nigeria and the United Arab Emirates partly offset by a substantial rise in flows from post-sanctions Iran. Saudi Arabia, OPEC’s largest producer, held supplies steady,” the report indicated. Similarly, the IEA said non-OPEC production also slipped by 90,000 barrels a day in February to 57.1 million barrels per day, and are expected to fall by 750,000 barrels a day this year and that total U.S. oil output is forecast to decline by nearly 530,000 barrels per day this year, to 12.4 million barrels a day.
It noted that non-OPEC producers such as those in the U.S. and Canada, who have far higher production costs than OPEC producers mitigated lower oil prices by cutting production and exploration. Such moves have had a knock-on effect on lowering non-OPEC oil supply.
“There are clear signs that market forces … are working their magic and higher-cost producers are cutting output,” the IEA said. It further pointed out that sharp decelerations in demand growth, particularly in the United States and China, pulled global growth down to a one-year low of 1.2 mb/d in the fourth quarter of last year compared with the year earlier, dramatically below the near five-year high of 2.3 mb/d in the previous quarter, adding that a gain of around 1.2 mb/d is forecast for 2016. While noting that international crude oil prices had recovered remarkably in recent weeks, the report warned that this should not be taken as a clear sign that the worst was over.
“It is clear that the current direction of travel is the correct one, although with a long way to go. Without an increase in demand expectations, high-cost oil suppliers will continue to bear the brunt of the market-clearing process,” the IEA said.
Oil prices fell at the beginning of this year to below $27 per barrel, raising concerns about the ability of Nigeria to finance its 2016 budget which pegged oil benchmark at $38 per barrel. With price now at $40 per barrel, an amount above the benchmark, there appears to be light at the end of the tunnel. Demand, supply to balance in 2017 Meanwhile, in spite of the ease in oil production, the IEA report, however, observed that output was still 1.8mb/d above the level it was a year ago, pointing out that there is still a glut of about a million barrels per day, down from about 2 million b/d a year ago.
The IEA, however, believes that demand and supply should balance in 2017. The body left its demand growth forecast for 2016 at 1.2m b/d, driven by India and smaller Asian economies. China which was the pillar for global oil demand for the last decade will see growth of 330,000 b/d this year. This compares to an average of 440, 000 b/ d for the last 10 years.
“We expect India and other smaller non-OECD Asian economies and the Middle East to provide most of the 2016 growth. The foundations for global demand growth are sound, but not rock-solid,” the IEA said. The IEA cautioned that any further rises in oil prices could dampen demand growth. “The foundations for global demand growth are sound, but not rock-solid,” the IEA warned.

leadership.ng/news/508792/nigeria-contributed-rise-global-oil-price-iea

diasporaman:
And some people are saying baba's globe trotting is not yielding any result

This comment was expected!

The Yawo is paying off. At $40 per barrel is ok at d moment. Start saving. Pdp ate d whole cake and forgot tomorrow pls pmb. Save for nxt tomorrow.

diasporaman:
And some people are saying baba's globe trotting is not yielding any result

The rise in oil is due to a fall in Nigeria's production, probably as a result of vandalism or government incompetence. Either way, there is nothing good about this.
Saudi arabia, the biggest OPEC producer has been going steady in their own oil production.

diasporaman:
And some people are saying baba's globe trotting is not yielding any result

Did you read the report?

diasporaman:
And some people are saying baba's globe trotting is not yielding any result

Oga shut up...

There is never a global trot as Nigeria cut down of oil supply is 100% effect of pipelines vandalism in the Niger delta region.

It wasn't and will never be to buhari the most defined cluelessness credits.