The Organisation of Petroleum Exporting Countries on Thursday agreed to extend curbs on crude oil outputs until the end of 2018.

Iran’s Energy Minister, Bijan Zangeneh, announced that Nigeria and Libya would be included in the oil output deal and an OPEC communique stated that the countries would not produce above 2017 levels in the new year, according to Reuters.

The Oman minister said that Nigeria had agreed to cap output at 1.8 million barrels per day.

The production cuts deal, which began on January 1 and called on OPEC countries and 10 non-OPEC producers led by Russia to cut a combined 1.8 million barrels per day in supplies to tackle oversupply and prop up prices, was in May extended by nine months to March 2018.

Nigeria and Libya, which were exempted from the cuts as they dealt with internal unrest that had targeted their oil infrastructure, had ramped up oil production in recent months as their security situations improved.

“OPEC extending the output cut till the end of 2018 was widely anticipated; however, suggestions that both Nigeria and Libya have decided to cap production is a bullish signal,” said Abhishek Kumar, senior energy analyst at Interfax Energy’s Global Gas Analytics in London.

However, price reactions were mostly muted, with many analysts saying the nine-month extension was already priced in.

“Because they’re going to be meeting again in a few months, we’re just going to be doing this again,” said John Macaluso, an analyst at Tyche Capital Advisors in New York.

Though the deal looked set to go through, a final decision involving non-OPEC producers, including Russia, had yet to be announced.

Russia has been pushing for a clear message on how to exit the cuts, concerned that prices do not rally too quickly and that rival United States’ shale firms do not boost output further.

One of OPEC’s biggest problems while cutting supplies has been rising US output, which is gaining global market share and undermining the group’s efforts to tighten the market.

http://investorsking.com/opec-pegs-nigerias-oil-output-1-8-million-bpd/

OPEC means Business. Oya, come and beat me.

C

Noted!

Good development BUT....
Nigeria and Libya should not be used in the same sentence at this point!



*Qoute*
Iran’s Energy Minister, Bijan Zangeneh, announced that Nigeria and Libya would be included in the oil output deal and an OPEC communique stated that the countries would not produce above 2017 levels in the new year, according to Reuters.

Na for their pocket, self i don vex! may somebody help me with the owner of this company number, i wan buy shares of the company with the miracle money may i feel also dey see say dey come my way before this year go run out and i go buy nairaland join. Na me una ban for 3weeks ba? i don come back

Money talks

g

1.8 mbpd is not bad.

that's serious when our budget was done based on 2.2 or 2.3 million BPD.the Senate was proactive by delaying the debate on mtef yesterday.we should trade with caution.

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That cap ain't working! What about bunkering? which through the its means, exports more than 1.8

No problem

...and the 2018 budget estimate was 2.3m bpd. If the cap is not removed, how do we meet the shortfall

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Hmm,dat too cumbersomely low,they suld have pegged it to around 500k barrel so dat we can all regain our senses.

OPEC just gave our 2018 budget a huge problem. with this new cap, we won't be able to raise 8trn naira.

Sharp9:
OPEC just gave our 2018 budget a huge problem. with this new cap, we won't be able to raise 8trn naira.

Shey d 8trn even dey realistic before ni, no b borrow we borrow for d last 2 budgets ni

Lol

Chai. What will happen to the budget

shaddoww:
Shey d 8trn even dey realistic before ni, no b borrow we borrow for d last 2 budgets ni

our borrowings go skyrocket be that. my country my country

Budget of consolidation......
Just if this could double the price of the crude per barrel

This will add more value to the price of oil. As there will be less supply and demand will be higher, helping to raise the aggregate price level of crude per barrel. We may have oil in the realms of $75 per barrel 2018

So how will APC fund 11trillion budget ?

I just did a fast calculation.

1.8mb/d × 365 days × 50dollars/b × 360naira/dollar

= 11.826 trillion naira

Baring production shut in.

Whichever you look at it, Nigeria has money.

Just poor management.

If I manage this fund, then I will place

1. 8trn for Capital and Recurrent expenditure.

2. 2trn for Servicing of Old debts, Bonds, Funds, TBs.

3. 2trn for savings or special safety nets.

Buhari, Adeosun and other Harvard voodoo/recession economists budgeted on 2.3MBPD

They can always go against OPEC...

naijaboy756:
Buhari, Adeosun and other Harvard voodoo/recession economists budgeted on 2.3MBPD

The budget was prepared BEFORE this OPEC decision.

nothing to show for it