Organisation of the Petroleum Exporting Countries (OPEC), has forecast a much tighter market in 2019, and has seen its production fall significantly this year, led by curbs to Saudi Arabian output along with dramatic, involuntary declines from sanctions-hit Venezuela.

Last month, total OPEC-14 preliminary crude oil production averaged 30.02 million barrels per day (mb/d), a decrease of 534,000b/d over the previous month. Crude oil output decreased mostly in Saudi Arabia, Venezuela, Iraq, and IR Iran, while production increased in Libya, Congo and Nigeria.Demand for OPEC crude in 2018 averaged 31.35 million b/d.

According to secondary sources, Nigeria recorded 1.73mb/d, while S&P Global Platts survey puts the nation’s output at 1.84mbpd from 1.88million b/d in February.The reported output is about 0.5mbpd lower than Federal Government key’s assumptions and micro-framework for the 2019 budget based on a projection of 2.3mbpd oil production, oil price benchmark of $60pb and exchange rate of N305 to a dollar.

Though oil prices like the Brent Crude and Nigeria’s Bonny Light traded above $71 yesterday, Nigeria needs to ramp up production albeit the agreed OPEC cuts to meet its fiscal responsibilities.In its monthly oil market report, OPEC estimates demand for its crude to average 30.30 million b/d in 2019, a fall of 1.05 million b/d on the year, signifying that oil inventories are going to decline sharply, pointing to a very tight market. But it said that the market remains oversupplied and warned of slowing demand growth.

Oil prices have recovered sharply since December, when they fell to a 15-month low, and ICE Brent has been trading a five-month high of above $71/b this week.OPEC revised demand growth down in 2019 to 1.21 million b/d due to “slower-than-expected economic activity.”

Global oil demand is estimated to average 99.91 million b/d this year, compared with 98.70 million b/d in 2018, OPEC said. The group pegged 2018 global oil demand growth at 1.41 million b/d.OPEC also revised down non-OPEC oil supply growth in 2019 by 60,000 b/d “due to extended maintenance in Kazakhstan, Brazil, and Canada.”

The U.S., Brazil, Russia, UK, Australia, Ghana, Sudan and South Sudan, will be the main drivers of supply growth this year, with U.S. crude production to rise by 1.46 million b/d in 2019 to 12.42 million b/d.“The highest incremental production is expected in the Gulf Coast, albeit at a slower pace compared to a year ago due to the pipeline constraints in Permian Basin,” it added.



Steep decline
Venezuela reported a production figure of 960,000 b/d, down by a massive 472,000 b/d, as power outages and U.S. sanctions cripple the South American oil producer.Saudi Arabia’s crude output fell 289,000 b/d in March, to average 9.79 million b/d, according to an average of the six secondary sources that OPEC uses to gauge production.

The kingdom also self-reported production of 9.79 million b/d, its lowest since January 2017 and a fall of 350,000 b/d month on month. That is much below its quota of 10.31 million b/d under the cut agreement.The kingdom has decreased production by 1.30 million b/d since November when it pumped a record-high of 11.09 million b/d.

At the last OPEC meeting in Vienna, the group’s members agreed to slash output by 812,000 b/d, with Russia and nine other non-OPEC allies committing to a cut of 383,000 b/d for the first six months of 2019.Iraq’s production fell marginally to 4.52 million b/d in March, slightly above its quota of 4.51 million b/d, according to OPEC secondary sources.

In Iran, hit by U.S. sanctions, output was slight down, falling 28,000 b/d to 2.70 million b/d in March.Fellow exempt member Libya pumped 1.098 million b/d in March, up 196,000 b/d from the previous month, but output remains at risk as the country is on the brink of a possible civil war.

A key metric for the deal has been to lower oil inventories below the five-year average. OPEC said it has made some progress toward achieving this goal.OECD commercial oil inventories fell to 2.63 billion barrels in February and were only 7.5 million barrels above the five-year average, according to OPEC’s report. In December, stocks were 28 million barrels above the five-year average, showing that the producer group has made progress in balancing the market.Also, U.S. total commercial oil stocks fell by 15.6 million barrels to stand at 1.229 billion barrels in March, according to preliminary data

https://www.akelicious.net/2019/04/opec-sees-tighter-2019-market-as.html

Nigeria lacks a purpose filled policy drive.

Why should others cut production, so that the US can continue to pump on a massive scale.

Nothing is permanent.

I wonder wetin nigeria go do when everybody goes green (green energy) and oil money no com dey again......this awa over reliance on oyel go finish us one day

Nigeria needs money now that crude oil price is reasonable,it will be difficult abiding by the production cut.

Oil wey go soon cast

Great info!





Check signature link for clean laptop deals

ideal price is $100 per barrel

Bossontop:

I wonder wetin nigeria go do when everybody goes green (green energy) and oil money no com dey again......this awa over reliance on oyel go finish us one day

suffer go tripple

Naija. I hail thee

Bossontop:

I wonder wetin nigeria go do when everybody goes green (green energy) and oil money no com dey again......this awa over reliance on oyel go finish us one day

Its even better because the oil is a curse and not a blessing, the proceeds from oil goes into few pockets in Nigeria while the masses are starving to death, let the oil finish even today, so that the idiots in Abuja can wake up and diversify the economy

Joromi12:
suffer go tripple

I dey teh u.....because we never ever get visionary leaders with foresight...

AngelicBeing:
Its even better because the oil is a curse and not a blessing, the proceeds from oil goes into few pockets in Nigeria while the masses are starving to death, let the oil finish even today, so that the idiots in Abuja can wake up and diversify the economy

If dat happens ehn, politics will become so unattractive dat nobody will be intersted again because of the lack of money......people go prefer to be business men than even d president.....

Okay
Check my signature to make legit income online.
Thank me later.

US wey dey collect oil from us sef....
Hmm this US na jagaban oo
Dem even collect our customers sef... E.g india.

We give loans to Traders Around Vi,lekki, lakowe and Environs kindly check my signature

salford1:
Why should others cut production, so that the US can continue to pump on a massive scale.

The US isn't a member of OPEC na.

Even sef, nor be that wan dey worry me. Ma worry be say the US shale oil don dey get muzzle. Exxon wan comot Naija because of am. Remember, about 2 months before election, India we be our top buyer change navigation go meet US oil.

With con tinued fluctuations in oil price, it is time to remove subsidy on power, fuel and others, pour money into railways....while investment grows in power and the downstream....making us a nation on the road to an oil free economy.

Because...oil does no one good.

Bossontop:

I dey teh u.....because we never ever get visionary leaders with foresight...


If dat happens ehn, politics will become so unattractive dat nobody will be intersted again because of the lack of money......people go prefer to be business men than even d president.....

The thing hampering our development is

1.Unreasonable amounts spent on the bottomless pit called subsidy...which prevents the flowing in of investment...and more refineries, and better gas supply infrastructure

2.Power subsidy...which prevents DISCOS and Gencos from investing in expansion of power supply facilities,. and prevents new investors from coming in.

Allow DISCOS and GENCOS to set their prices, and allow the price of fuel to be set by marketers...leading to flow of investment into the power and oil sector...meaning better gas supply, better power supply, more refineries....and better savings for government...making our economy grow...and taking us off oil dependency

AngelicBeing:
Its even better because the oil is a curse and not a blessing, the proceeds from oil goes into few pockets in Nigeria while the masses are starving to death, let the oil finish even today, so that the idiots in Abuja can wake up and diversify the economy

When oil finish, just to type this rubbish you posted you go pay tax on top .....as una no want wise [color=#006600][/color]

I don't know.

salford1:
Why should others cut production, so that the US can continue to pump on a massive scale.

When filling stations create artificial scarcity, what happens to the price of petrol? It's the same scenario here.

ukejejohnson:



When oil finish, just to type this rubbish you posted you go pay tax on top .....as una no want wise [color=#006600][/color]

That will be the best thing to happen in Nigeria.l have been paying taxes in my current location outside Nigeria for over a decade before my salary gets to me, the tax is removed.

l also pay taxes in several other things in my current location, so it will be a piece of cake to pay it in Nigeria as long as it will translate to been used for road construction, hospitals, ambulance services, good security, power, water etc oil is a curse in Nigeria, let the oil dry up today and force the useless criminal politicians at Abuja to diversify the economy into massive Agriculture, tourism etc

The status quo as at today is that few rogues and gangstas in government are enriching themselves with the oil and illiterate like you are been oppressed, killed by SARS, bokoharam, kidnappers, robbers, ritualism etc you fail to see it because you are blind and you have an empty brain void of thinking to see the attrocities been perpetuated by the rogues and gangstas you elected in Nigeria rubbish

tactius:


The thing hampering our development is

1.Unreasonable amounts spent on the bottomless pit called subsidy...which prevents the flowing in of investment...and more refineries, and better gas supply infrastructure

2.Power subsidy...which prevents DISCOS and Gencos from investing in expansion of power supply facilities,. and prevents new investors from coming in.

Allow DISCOS and GENCOS to set their prices, and allow the price of fuel to be set by marketers...leading to flow of investment into the power and oil sector...meaning better gas supply, better power supply, more refineries....and better savings for government...making our economy grow...and taking us off oil dependency

More money to be looted... Thats the problem

These politicians don't want to hear about more money, take a look at the excess Crude account. More money, more looting

feldido:


More money to be looted... Thats the problem

These politicians don't want to hear about more money, take a look at the excess Crude account. More money, more looting

The reason why we have democracy is so that we can hold politicans accountable.

But the truth is, we don't want to hold politicians accountable...or when we do, it is whoever is in Aso Rock...and most of the time it is for politics.

Democracy is hard work.

Money for who to chop please .

israelmao:
Nigeria needs money now that crude oil price is reasonable,it will be difficult abiding by the production cut.

Bossontop:

I dey teh u.....because we never ever get visionary leaders with foresight...


If dat happens ehn, politics will become so unattractive dat nobody will be intersted again because of the lack of money......people go prefer to be business men than even d president.....

Do you think that our politicians are humans like us?


They will just reduce salaries,
reduce work force aka redundancy,
increase VAT,
increase import levies,
increase tax on locally made goods n services, increase tax on market men and women,
collect tax from landlords and land ladies, collect tax from poultry owners,
collect tax from prostitutes,
create fake job adverts and ask you to buy form to register for it,
buy recharge card to view if your successful,
They will increase tuition fee in all schools
They will abolish pension
Right now they ain't paying pensions sef!

They will tax us to the grave

But will never reduce cost of government


So think again