In recent weeks a lot of information have been release which looks bad when viewed from a single perspective, but grimm when combined together as an indicator of trends.

1. President has been travelling around a lot(panicking?)

2. 33m barrels of Nigerian oil unsold (@2mbpd ~15days storage full, fees, shutdown)

3. Iran back in market, Saudi not cutting back, and paying for freight and insurance.

4. 44 ships expected in Lagos by Dec 18


Now starting from no.4 @N240 to a dollar you will expect a lot of Nigerians abroad to ship goods home for the christmas season and travel down at the same time to clear their goods since they are the main clients this season but at 44 ships this is far from previous years when the ports will be backed up with over 100 ships trying to unload. Most of the cargoes are petrol and rice which are goods that generally indicate outflow of dollars.I each traveller flies in with $1000 cash to spend for christmas there is going to be a huge shortage this season

Iran, and Saudi spat needs money to finance and both will not cut production for national security reasons, Saudis have financial obligations so they need every dollar they can get.Russians too need money.

Competition to sell oil in the market has driven some government to pay for shipping and insurance to SE Asia, so Nigeria has to find buyers at even lower price and bear delivery costs.

33m barrels have to be stored somewhere at a cost to owner and when storage is full and cost rises for storage as days go by you will have to slow/ stop production and when the time for that comes close nos 1 happens.

The economy is grinding to a halt Osun state got ~$250k from federation account and states can't even borrow money anymore.
If they president cannot find buyers in the next 2 weeks oils will go to $32 per barrel and the budget for 2017 will be rough.

It is easy to disregard all these as garbage but what game plan has been drawn for such possibilities

sultaan:
In recent weeks a lot of information have been release which looks bad when viewed from a single perspective, but grimm when combined together as an indicator of trends.

1. President has been travelling around a lot(panicking?)

2. 33m barrels of Nigerian oil unsold (@2mbpd ~15days storage full, fees, shutdown)

3. Iran back in market, Saudi not cutting back, and paying for freight and insurance.

4. 44 ships expected in Lagos by Dec 18


Now starting from no.4 @N240 to a dollar you will expect a lot of Nigerians abroad to ship goods home for the christmas season and travel down at the same time to clear their goods since they are the main clients this season but at 44 ships this is far from previous years when the ports will be backed up with over 100 ships trying to unload. Most of the cargoes are petrol and rice which are goods that generally indicate outflow of dollars.I each traveller flies in with $1000 cash to spend for christmas there is going to be a huge shortage this season

Iran, and Saudi spat needs money to finance and both will not cut production for national security reasons, Saudis have financial obligations so they need every dollar they can get.Russians too need money.

Competition to sell oil in the market has driven some government to pay for shipping and insurance to SE Asia, so Nigeria has to find buyers at even lower price and bear delivery costs.

33m barrels have to be stored somewhere at a cost to owner and when storage is full and cost rises for storage as days go by you will have to slow/ stop production and when the time for that comes close nos 1 happens.

The economy is grinding to a halt Osun state got ~$250k from federation account and states can't even borrow money anymore.
If they president cannot find buyers in the next 2 weeks oils will go to $32 per barrel and the budget for 2017 will be rough.

It is easy to disregard all these as garbage but what game plan has been drawn for such possibilities

Hope you are not expecting any APC supporter to answer you!

chudionu58:
Hope you are not expecting any APC supporter to answer you!

And how do you expect we APC supporters to influence the oil price

Eshinwaju:


And how do you expect we APC supporters to influence the oil price

But the saintly Buhari said he would bring sanity to international oil trade...

incoherent. try again.

You didn't thank Jonathan for watching $2.5 billion meant for fighting Boko Haram shared among PDP members?

The title and body of the message does not correlate..

kingbasil:


But the saintly Buhari said he would bring sanity to international oil trade...

Where and when did he say that.....election propaganda is over.....deal with it.....

Its been 8 months and things are just as I thought.

People think this is about Politics, but in their ignorance of the economic triggers they are always surprised when things go wrong.

Blame Buhari for everything remember a Northerner is dishing out the national cake now and won't necessarily splurge on the south since it's a third of previous size.

The Northern economy has been feeling like the south feels now for 6 years and the solution is for oil revenue to go down to 0 required to a full economic reset( think of African countries with 0 oil revenue)

Here is the next set of indicators

1.Summer will be over soon so oil price will fall again.

2. Cargos coming in Dec will be fewer than last year, @N240/$ government imported a lot of fuel and rice to cushion the season that will not be possible this year so you should all save a bag of rice for xmas(think about it)

3.Some bank failures will trigger customers moving their money to 'safer' banks.

4. Good news is there will be a lot less cars on the road.

The bleak future is not even here yet

How is the tokunbo market now @ N670/$.

How do we make sensible moves for a possible 800:1 future.

No one is talking about car importation now, the days of Inspired autos business model is gone.

What will the future bring and how do we tap into it now.

How do owners keep their cars running longer.

With the impending removal of some fuel subsidy, what kind of cars should Nigerians buy with fuel at N250/liter

The useless people who brought inn Buhari are still working hard for Tinubu and Atiku who work to bring this disaster to power.