Naira will lose more value and revenue from oil sales will dwindle as oil prices will further decline.

Iran could add as much as 500,000 barrels of oil per day to worldwide markets by the end of this year, according to experts at a recent Credit Suisse conference on Iranian sanctions and oil. The International Energy Agency estimates Iran could add as much as 800,000 barrels a day months after sanctions are lifted. Another 30 million barrels of Iranian crude are estimated to be in storage and ready for sale, according to FACTS Global Energy, an industry consultancy.

http://money.cnn.com/2015/07/14/news/economy/2-gas-iran-nuclear-deal/index.html

Get ready for a new oil low.

The bottom may still lie ahead, as the market remains "massively oversupplied," the International Energy Agency said Friday. The report noted that Iraqi oil output was more than 4 million barrels a day -- an all-time high.

The IEA, which monitors energy market trends for the world's richest nations, said global oil supply has surged an additional 550,000 barrels a day in June, rising in both OPEC and non-OPEC countries.

OPEC supply rose by 340,000 barrels a day in June to its three year high of 31.7 million barrels a day. That means the cartel is producing 1.7 million barrels more than the official target OPEC ministers agreed to last month.

OPEC's record output is part of an aggressive effort to keep its market share in the face of fierce competition from the U.S. and others.

The U.S. oil production hit 44-year high in April, rising to 9.7 million barrels a day, latest available data show. But the supply growth is slowing. U.S. supply grew by 1.0 million barrels a day in the first five months of 2015, down from 1.8 million last year.

The world's oil demand will finally slow down in 2016, the agency said, but not enough to offset the world's growing oil glut.

"The rebalancing that began when oil markets set off on an initial 60 percent price drop a year ago has yet to run its course," the report said.
The agency sees demand slowing to 1.2 million barrels a day next year, from an average 1.4 million barrels a day in 2015.

Oil prices dropped below $51 a barrel earlier this week, the first time since early April, down from the highs of $107 a barrel last summer. Oil was trading at $53.2 per barrel on Friday morning.

http://money.cnn.com/2015/07/10/news/iea-oil-report/index.html?iid=EL

Send this to Buhari

owk

Cc: PMB,oil marketers (major and co) and economic team(in the fulneess of time).

Somebody needs to start a war in the Middle East abeg.

Can we shamed this oil thing and invest heavily in other sectors? In time like this we have to look inward, and make it snappy too.

Unfortunately, it is the ordinary citizens on the street that will feel the brunt of it! The government under GEJ should have been saving for a rainy day like this but I'm not even sure that would have been enough in the long-term. Diversifying the economy is the only long-term solution but with what money? If the dwindling revenue is spent on recurrent expenditure where will money for investment into other sectors come from? I honestly do not envy Buhari and his team!

Wallie:
Unfortunately, it is the ordinary citizens on the street that will feel the brunt of it! The government under GEJ should have been saving for a rainy day like this but I'm not even sure that would have been enough in the long-term. Diversifying the economy is the only long-term solution but with what money? If the dwindling revenue is spent on recurrent expenditure where will money for investment into other sectors come from? I honestly do not envy Buhari and his team!

Hard talk bro. It's a fact cuz these legislooters and ex-govs do have their loot in dollars.

It's time we look inwards to develop the economy starting from the smallest unit. Make use of available and affordable technology to harness power and drive the economy into other sectors especially manufacturing.

Time to cut cost of governance, forsake white elephant projects and get feasible developmental projects. I thought APC got a manifesto and blueprint to drive the country forward? It's time they bring it out.

Local refining of petroleum
Local processing of agricultural products
Gas for power, we can replicate the combine cycle gas plants to drive us through the incoming dark times.

Joseph and Egypt comes to mind here.

Where are those who strongly opposed naira devaluation?