Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,143,362 members, 7,780,994 topics. Date: Friday, 29 March 2024 at 07:07 AM

Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 (9396 Views)

OPEC Sends Oil Prices Crashing – Oilprice Report / Nnpc Cuts Production Cost To $23/barrel / OPEC Agrees To Cut Production; Oil Prices Surge (2) (3) (4)

(1) (Reply) (Go Down)

Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by RoyalMail: 3:54pm On Sep 29, 2016
The world's leading oil nations - known as Opec - have struck a landmark deal at talks in Algeria that sees the countries agree to cut output and lift prices.

Oversupply has been dogging the world's oil markets and hopes are that the first deal between the nations since 2008 will mark the end of the 'dumping' strategy previously favoured by the organisation's members.

Immediately after the deal was agreed oil prices rose, with Brent Crude - the international benchmark - rising almost 6 per cent to nearly $49 a barrel last night.

Iran's Oil Minister Bijan Zanganeh said: 'Opec made an exceptional decision today. After two and a half years, OPEC reached consensus to manage the market.'

He added: 'We have decided to decrease the production around 700,000 barrels per day.'

Oil ministers said full details of the agreement would be finalised at a formal Opec meeting in November when an invitation to join cuts could also be extended to non-OPEC countries.

Markets now have to wait and see whether non-OPEC producers such as Russia, the United States and Canada will make cuts of their own.

The agreement sees output fall by about 700,000 barrels a day, although the cuts will not be distributed evenly across the cartel, with Iran being allowed to increase production.

The deal is even more remarkable given that disagreements between Iran and its regional rival Saudi Arabia had thwarted earlier attempts to reach any agreement.

Analysts said the deal shows Opec - whose members account for around 40 per cent of global supply - has finally woken up to the reality of oversupply and the damage its policies has caused the oil industry.


Source:
http://www.ajayiwrites.com/2016/09/oil-prices-surge-6-after-opec-agrees-to.html

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by RoyalMail: 3:55pm On Sep 29, 2016
I think Ibe Kachichukwu should be appluaded to this..

Read his press release below..



lalasticlala

4 Likes

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Nobody: 3:58pm On Sep 29, 2016
The main reason is Saudi Arabia not Muhammadu or Ibe or Barkindo undecided

"The big surprise is that Saudi Arabia has reversed its approach to managing the oil market. Saudi is the biggest producer in Opec, and had appeared happy to push the oil price down to hurt rival producers (particularly the new shale industry). But a lower oil price has hurt Saudi’s economy too; it is expected to run a deficit of 13.5% of GDP this year, and is imposing wage cuts as part of an austerity drive. So the ‘pump-at-will’ policy appears to have been scrapped.

Source: https://www.theguardian.com/business/live/2016/sep/29/markets-rally-opec-cuts-oil-production-deutsche-bank-business-live?page=with:block-57ecaf8ee4b0c6325341f1bc#block-57ecaf8ee4b0c6325341f1bc

So give credit accordingly...nonsense press release angry

14 Likes

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by adegunwa4real(m): 4:04pm On Sep 29, 2016
wow....
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Blue3k(m): 4:05pm On Sep 29, 2016
I feel nigeria should leave OPEC and let market control our future. The relationship doesn't benefit us long term and stunts us technologically because it makes us lazy. Free market principles are better.

1 Like

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by RoyalMail: 4:23pm On Sep 29, 2016
Keneking:
The main reason is Saudi Arabia not Muhammadu or Ibe or Barkindo undecided

"The big surprise is that Saudi Arabia has reversed its approach to managing the oil market. Saudi is the biggest producer in Opec, and had appeared happy to push the oil price down to hurt rival producers (particularly the new shale industry). But a lower oil price has hurt Saudi’s economy too; it is expected to run a deficit of 13.5% of GDP this year, and is imposing wage cuts as part of an austerity drive. So the ‘pump-at-will’ policy appears to have been scrapped.

Source: https://www.theguardian.com/business/live/2016/sep/29/markets-rally-opec-cuts-oil-production-deutsche-bank-business-live?page=with:block-57ecaf8ee4b0c6325341f1bc#block-57ecaf8ee4b0c6325341f1bc

So give credit accordingly...nonsense press release angry


LOL... Bros, don't take it personal, lets celebrate our own na..

10 Likes 1 Share

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Zico5(m): 9:57am On Sep 30, 2016
This is the best decision from the OPEC. I pray Buhari make good of the privilege by diversify the economy. There will surely be calm after the stormy sea. Those castigating the economy will surely eat their pie and drink water on it. This government may be slow but the good thing is that we are gradually taking shape and I'm sure things will get better.

1 Like

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by gurunlocker: 9:58am On Sep 30, 2016
I hope Bubu and his economic team are reading this.... We don't want same story again
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Kaybee14(m): 9:59am On Sep 30, 2016
This is nice. I do hope this would reflect positively on the masses.

1 Like

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Nobody: 10:03am On Sep 30, 2016
In Obasanjo's voice "PDP-GO-AND-DIE"
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Nobody: 10:07am On Sep 30, 2016
9ja, which way forward?
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by 989900: 10:09am On Sep 30, 2016
Good one, shale though with rising prices . . . undecided
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by igahdavid(m): 10:09am On Sep 30, 2016
Wonderful news. Hope the oil price will surge and help Nigeria come out of this Recession. And Moreover the FG will have enough money to finally diversify our Economy without complaining.

Nigeria will be great again

1 Like

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Nightshift(m): 10:17am On Sep 30, 2016
Keneking:
The main reason is Saudi Arabia not Muhammadu or Ibe or Barkindo undecided

"The big surprise is that Saudi Arabia has reversed its approach to managing the oil market. Saudi is the biggest producer in Opec, and had appeared happy to push the oil price down to hurt rival producers (particularly the new shale industry). But a lower oil price has hurt Saudi’s economy too; it is expected to run a deficit of 13.5% of GDP this year, and is imposing wage cuts as part of an austerity drive. So the ‘pump-at-will’ policy appears to have been scrapped.

Source: https://www.theguardian.com/business/live/2016/sep/29/markets-rally-opec-cuts-oil-production-deutsche-bank-business-live?page=with:block-57ecaf8ee4b0c6325341f1bc#block-57ecaf8ee4b0c6325341f1bc

So give credit accordingly...nonsense press release angry
Saudi Arabia just like other OPEC member countries are hurt deeply by the slump in crude oil price. The difference between Nigeria and others is that they at least saved some billions of dollars , while the former ruling government in Nigeria wasted earnings from about 750 million barrels of crude (annual volume)sold at average price of $85, for over four years.

Just like Nigeria, Saudi rulers have realized that economic boom for one-commodity based economies is a recipe for disaster, especially when the earnings are creamed-off by the ruling elites.

3 Likes 2 Shares

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by mustmust(m): 10:30am On Sep 30, 2016
Oil prices stability waiting for 1 dollars equal to 1 naira
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by drnoel: 10:31am On Sep 30, 2016
Keneking:
The main reason is Saudi Arabia not Muhammadu or Ibe or Barkindo undecided

"The big surprise is that Saudi Arabia has reversed its approach to managing the oil market. Saudi is the biggest producer in Opec, and had appeared happy to push the oil price down to hurt rival producers (particularly the new shale industry). But a lower oil price has hurt Saudi’s economy too; it is expected to run a deficit of 13.5% of GDP this year, and is imposing wage cuts as part of an austerity drive. So the ‘pump-at-will’ policy appears to have been scrapped.

Source: https://www.theguardian.com/business/live/2016/sep/29/markets-rally-opec-cuts-oil-production-deutsche-bank-business-live?page=with:block-57ecaf8ee4b0c6325341f1bc#block-57ecaf8ee4b0c6325341f1bc

So give credit accordingly...nonsense press release angry
Ofcos any fool know where the money is. Alle Ibevto take the glorybon the nigerian front, let him think hebis deceiving us, while ge deceives himself.
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Nobody: 10:37am On Sep 30, 2016
Blue3k:
I feel nigeria should leave OPEC and let market control our future. The relationship doesn't benefit us long term and stunts is technologically because it makes us lazy. Free market principles are better.
so when every member leaves the price of oil will bounce back right? Basic economics shows that over supply of a product wil kill its price and unless a monopolistic market system is created the producers will suffer.

2 Likes

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Nobody: 10:45am On Sep 30, 2016
This is a good news..at last OPEC has finally get their ass together
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Agimor(m): 10:49am On Sep 30, 2016
Hmmm
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by timeman: 10:50am On Sep 30, 2016
@keneking, saudi arabia is expected to run 13.5% deficit of GDP while jokers like you insult the FG as though she controls market dynamics. Almost up to half oil producing countries are facing the crux of recession due to the prevailing challenges but you suddenly turned yourself into an armchair activist overnight. Useless commenter(s).
Kiss the truth!
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Nobody: 11:12am On Sep 30, 2016
Keneking:
The main reason is Saudi Arabia not Muhammadu or Ibe or Barkindo undecided

"The big surprise is that Saudi Arabia has reversed its approach to managing the oil market. Saudi is the biggest producer in Opec, and had appeared happy to push the oil price down to hurt rival producers (particularly the new shale industry). But a lower oil price has hurt Saudi’s economy too; it is expected to run a deficit of 13.5% of GDP this year, and is imposing wage cuts as part of an austerity drive. So the ‘pump-at-will’ policy appears to have been scrapped.

Source: https://www.theguardian.com/business/live/2016/sep/29/markets-rally-opec-cuts-oil-production-deutsche-bank-business-live?page=with:block-57ecaf8ee4b0c6325341f1bc#block-57ecaf8ee4b0c6325341f1bc

So give credit accordingly...nonsense press release angry


U v a point, but don't forget Saudi Arabia too felt a big blow in Dier crude oil market as the shale production has recorded a major success.. So its all tinz been equal
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by bdemix(m): 12:00pm On Sep 30, 2016
Somewhere in Kenya

Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Truth234(m): 12:59pm On Sep 30, 2016
This may not hold because of Iran reaction to the consensus barely 24 hours later.

Barely 24 hours after OPEC members reached consensus, Iranian Oil Minister Bijan Zanganeh has debunked the agreement saying the figures used by OPEC are too low compared to the current production in Iran.

According to the Oil Minister “This we cannot accept and we will ask for alternatives.”

Iran, OPEC’s third largest producer, with daily production of 3.6 million barrels as of August has disagreed severally on production cut since its sanction was lifted by the United Nation in January.

One of the world’s most astute analysts, David Petraeus has called the whole pledge of the OPEC members “nonsense”. According to him, “Oil prices never should have gone up. The Saudis will continue to pump. So will the Iraqis and the Libyans if they can.”


http://investorsking.com/opec-production-cut-another-joke/
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by Blue3k(m): 1:25pm On Sep 30, 2016
franciskaine:
so when every member leaves the price of oil will bounce back right? Basic economics shows that over supply of a product wil kill its price and unless a monopolistic market system is created the producers will suffer.

No producers cut back supply naturally if the demand for product at certain price point isn't met. Basic economic explain this phenomenon in a competitive market in supply demand curve. This why us investors innovate in horizontal drilling and facking. In competive market producers find was to save cash and adapt you don't need monopolistic market.

Besides you wouldn't dare argue OPEC countries have better oil market or economy then non opec member like USA.
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by rukatech: 4:27pm On Sep 30, 2016
cut production to 32.5 million barrels per day from around 33.24 million.
Re: Oil Prices Surge 6% After OPEC Cuts Production For First Time Since 2008 by amanikondo: 5:52pm On Sep 30, 2016
the United States and Canada Saudi plans to hurt the US shale oil backfired on them. Oil will never go to $100 per barrel again .

(1) (Reply)

See EFCC Order Asking Heritage Bank To Freeze Geonel Integrated Services Acct / Gas Supply From Nigeria To Ghana, Others Drops / POS: CBN Engages Operators, Zenith Bank Cautions Agents On Transaction Fees Hike

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 36
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.