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Nairaland Forum / Nairaland / General / Business / Plummeting Oil Prices: LNG Price Slumps By Over 50% (11804 Views)
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Re: Plummeting Oil Prices: LNG Price Slumps By Over 50% by macjireh: 9:47am On May 30, 2016 |
chigoizie7: DON'T REALLY UNDERSTAND D ECONOMIC TERMS PLAYING HERE, BUT D LITTLE I UNDERSTAND IS DAT, SINCE WE DEPEND LARGELY ON SALES OF CRUDE OIL TO RUN OUR ECONOMY, D PAYMENT WE NOW GET HAS DROPPED. FOR INSTANCE, LETS SAY WE USED TO SELL 2000 BARRELS PER DAY AS AT 2014 AND WE MADE $100,000 DAILY FROM SALES OF CRUDE, NOW IN 2016, D QUANTITY OF CRUDE WE SELL DAILY HAS DROPPED TO SAY 900 BARRELS PER DAY BECAUSE OTHER COUNTRIES HAVE INCREASED THEIR SUPPLY. ELEMENTARY ECONOMICS TEACHES DAT INCREASED SUPPLY LOWERS DEMAND. NOW DS ON ONE SIDE. SECONDLY D "900" BARRELS WE NOW SUPPLY DAILY USED TO SELL AT 2000X $115 , BUT NOW WE SELL AT 900X $50 DAILY. DO D MATH AND U SEE THAT NIGERIA IS LEFT WITH LITTLE OR NOTHING TO RUN HER ECONOMY. THIRDLY DEVALUATION SEEMED TO BE D ONLY WAY OUT. A SIMPLE UNDERSTANDING OF DEVALUATION TO ME IS ADDING MORE TAX ACROSS ON EVERY COMMODITY BOUGHT IN A COUNTRY. THIS IS SHOWN ON D CURRENCY BY WHICH WE EXCHANGE FOR GOODS IN D INTERNATIONAL MARKET WHICH IS DOLLAR. BY SO DOING, D GOVERNMENT WILL HAVE ENOUGH MONEY TO RUN PROJECTS, PAY WORKERS AND STUFF. DZ AND MANY MORE ARE D REASONS Y FUEL PRICES ARE ALSO ON D HIGH SIDE. I HOPE DS EXPLANATION CAN SUSTAIN U TILL WEN U GET A MORE TECHNICAL ONE FROM AN ECONOMIST. |
Re: Plummeting Oil Prices: LNG Price Slumps By Over 50% by chigoizie7(m): 11:03am On May 30, 2016 |
macjireh: U are talking a different thing altogether. Whatever u said up there had no correlation to the questions I asked. If u ve been following my comments u will attest to the fact that I have been explaining what u wrote up there to other people, trust me, I know very much about what u said, thus, I wouldn't be asking questions about what I already know. Please go back and read my initial comment, I pray u will understand my questions very clearly. I am not talking about what comes in through the sale of crude. My question is why we buy petroleum products @ d current price we buy it now that the sale of crude(raw material) has decreased by 50%. And why naija has slashed the current sale of LNG by 50%. Considering the fact that both LNG and other petroleum products are produced with the same raw material(crude). That is my question. As for devaluation of naira? Uptill date, FG has not told us weda it has been devalued or not officially even when other govt agencies are operating with a different fx rate different from that of CBN, example of such agency is nigeria customs. Trust me, I know the importance of devaluation, even though it came late( it should have come earlier than now so that we will tackle it the same time we were tackling the hike on pms) . There are other questions I asked, about d current price of PMS now that naira is being devalued through the back door, even when the template used in arriving @ N145 was 199/$ CbN rate, what will happen now that the importers will have to source fx through the black market even when d CbN rate will be around N285/$ through d back door. Those are my questions. I am not interested to know the merits/demerits of naira devaluation, neither am I interested on how much and how the price of crude has reduced over the years, as I know very well about it. |
Re: Plummeting Oil Prices: LNG Price Slumps By Over 50% by tansho(m): 11:53am On May 30, 2016 |
DropShot: Oya, defend, Mr elder. 1 Like
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Re: Plummeting Oil Prices: LNG Price Slumps By Over 50% by Ahmeduana(m): 12:04pm On May 30, 2016 |
NwaNimo1:THAT IS WHAT WILL HAPPEN WHEN SOME BUNCH EVIL INTENTION POWER GRABBERS USES BROOMS TO SWEEP THE FOOTPRINT OF A WELL INTENTIONED, AND BEAUTIFUL MIND PERSON, WHAT WILL FOLLOWS IS GOING TO BE UNPRECEDENTED CATASTROPHIC, MONUMENTAL, DISASTER. |
Re: Plummeting Oil Prices: LNG Price Slumps By Over 50% by micxwell(m): 3:12pm On May 30, 2016 |
aloeman15:Thanks |
Re: Plummeting Oil Prices: LNG Price Slumps By Over 50% by micxwell(m): 3:13pm On May 30, 2016 |
macjireh:Thanks for the explanation. |
Re: Plummeting Oil Prices: LNG Price Slumps By Over 50% by micxwell(m): 3:16pm On May 30, 2016 |
tansho: Lol.... hope say Mr elder never bail out? 1 Like |
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