Oil rocketed more than 10 percent higher on Thursday, posting its biggest one-day rally in over six years as recovering equity markets and news of diminished crude supplies set off a short-covering scramble by bearish traders.

Snapping back from a deep two-month slump that knocked U.S. crude to 6-1/2 year lows below $40 this week, oil climbed as world stock markets rose on hopes Chinese government measures to stimulate the economy would pay off, while the dollar strengthened as risk aversion eased.

The rally was aided by news of a force majeure on Nigerian oil exports declared by Shell (RDSa.L) and private data indicating more drawdowns in crude this week at Cushing, Oklahoma, traders said. A big upward revision in second quarter U.S. economic growth helped.

http://www.reuters.com/article/2015/08/27/us-markets-oil-idUSKCN0QW03020150827

Shell declared force majeure on Bonny Light crude oil exports on Thursday following the shutdown of a 180,000 barrel per day (bpd) pipeline. But the disruption may have a limited impact on the market with some 10 million barrels of September-loading Bonny Light still unsold.

The drop in the prices of crude oil in the international market again took its toll on the federation account as the gross revenue into the account declined by N52.36bn from N485.95bn received in June to N433.58bn in July.

The revenue figures for the period were released on Wednesday in Abuja shortly after the Federation Account Allocation Committee meeting, which was presided over by the Permanent Secretary, Federal Ministry of Finance, Mrs. Anastacia Nwaobia.

Nwaobia, who addressed journalists shortly after the meeting, which began at 4pm and lasted till 7:54pm, attributed the decline in revenue to various reasons.

For instance, she said there was a loss of about $22.53m (N4.44bn) in revenue due to a drop in average price of crude oil from $65.76 per barrel in May to $61.27 per barrel in June 2015.

Also, she said the persistent shutdown and shut-in of trunks and pipelines at various terminals, as well as emergency repairs, which led to the declaration of force majeure had continued to impact negatively on revenue performance.

She said, “The gross revenue of N433.58bn received for the month was lower than the N485.95bn received in the previous month by N52.36bn.

“Shutdown and shut-in for maintenance and emergency repairs as well as declaration of force majeure by the Shell Petroleum Development Company were major issues that negatively impacted crude oil revenue.

“Also, there was a revenue loss of $22.53m as a result of the drop in average price of crude oil from $65.76 in May to $61.27 in June.”

As a result of the poor revenue performance, the allocations to the three tiers of government witnessed a decline of N27.44bn from N620.66bn in June to N539.24bn.

When compared to the budgeted sum of N620.66bn that should have been shared based on the 2015 Appropriation Act, the N511.79bn shared in June represents a huge decline of N108.86bn.

“Also, there was a revenue loss of $22.53m as a result of the drop in average price of crude oil from $65.76 in May to $61.27 in June.”

As a result of the poor revenue performance, the allocations to the three tiers of government witnessed a decline of N27.44bn from N620.66bn in June to N539.24bn.

When compared to the budgeted sum of N620.66bn that should have been shared based on the 2015 Appropriation Act, the N511.79bn shared in June represents a huge decline of N108.86bn.


http://www.punchng.com/business/business-economy/fg-records-n52-3bn-shortfall-in-revenue/

WHAT ELSE CAN THEY TALK OR WRITE ABOUT ? OIL OIL .


this people and oil eeeee h heeeeeeeeeee did you see ?


this so called Nigerians are so proud of this crude oil thing .


oh my jah yanwe

Who will save us from this oil curse? Côte d'Ivoire does not have oil and they are doing pretty well!!

citizenisb:
Who will save us from this oil curse? Côte d'Ivoire does not have oil and they are doing pretty well!!

it is relative.
cotedivoire has a smaller economy than kano state.

83% of Nigeria oil blocks is owned by Buhari brothers yet no single drop of oil in the north. i pray our oil to dry up so that the north will stop killing themselves for leadership positions. Buhari and Nigeria sucks

Misleading headline

We are having great problems even to sell our crude for September, even with the low price!!!