Crude oil prices hit a year-record high of $46 a barrel yesterday, giving Nigeria a buffer of $8 over its $38 a barrel 2016 budget benchmark, a feat, which it has not attained since January.


Specifically, Brent crude rose by 77 cents from a session low this morning to hit $46 a barrel by 7.50am UK time, while the US, West Texas Intermediate (WTI) futures were up by 19 cents from $43.62 to $44.37 a barrel.


Crude oil prices have been rising since beginning of the week despite the failure of talks at the weekend between the world’s largest oil producing countries that were intended to tackle oversupply by freezing production.


Hope that the global crude oil prices will continue to rise was further boosted yesterday, as the United States (U.S.) onshore crude oil production in the lower 48 states is expected to decline from an average of 7.41 million barrels per day (bpd) to 6.46 million bpd in 2016 and to 5.76 million bpd in 2017.

The U.S. Energy Information Administration (EIA), which attributed the decline to response to continued low oil prices, noted that increased production from the Federal Gulf of Mexico (GOM) is not enough to offset those declines, with total projected U.S. production falling from 9.43 million bpd in 2015 to 8.04 million bpd in 2017.


The EIA stated that the sharp decline in oil prices since the fourth quarter of 2014 has had a significant effect on drilling in the United States.
It stated: “The number of active onshore drilling rigs in the Lower 48 states fell 78 per cent (from 1,876 to 412) between the weeks ending on October 31, 2014, and April 15, 2016. The decline in active rigs and well completions is projected to result in month-over-month onshore oil production declines of 120,000 bpd through September 2016.

“Market expectations of uncertainty in the crude oil price outlook continue to be high, as reflected in the current values of futures and options contracts. In EIA’s April Short-Term Energy Outlook (STEO), the 95 per cent confidence interval for market expectations for prices in December 2017 is relatively wide, with upper and lower limits of $20 per barrel (b) and $100/b, respectively. EIA’s April STEO forecasts Brent crude oil prices averaging $35/b in 2016 and $41/b in 2017, with the December 2017 price averaging $45/b”, it added.


EIA projects that the number of operating rigs in the Lower 48 states will continue to decrease through mid-2016 before beginning to slowly increase.
“However, expected Lower 48 production will continue to decline—although at a slowing rate—throughout 2017”, it said.

Also, the International Energy Information Administration (IEA) said that low oil prices have squeezed capital investment hard, which saw a 24 per cent drop in global capex, and this year, expecting a further decline of 17 per cent: the first back-to-back annual declines since 1986.

It said that the situation could get worse as companies continually review their spending plans.
“The cutbacks are mainly concentrated in high-cost projects in countries such as Canada, Brazil and Russia. However, the cuts are not limited to capital expenditure, or capex: operating expenditure is being cut even in lower-cost areas such as the Middle East. Such are the budgetary pressures affecting their economies that oil industry cutbacks are necessary to fund politically important social expenditure”, it added.

https://www.today.ng/business/110189/crude-prices-hit-46-barrel-record-year-high

Kemi Adeosun be like

I honestly pray d price stays down.

Let's diversify d economie, not depend on oil.

Zombies be like: sai baba d travelling is yielding result.

Nice nice nice!

Henrypraise:
I honestly pray d price stays down.

Let's diversify d economie, not depend on oil.

Zombies be like: sai baba d travelling is yielding result.

In this case , I'm a zombie and I'm proud.

suyamasta:
Nice nice nice!

Why do we still have our eyes so much fixed on oil? I think we are in the era of diversification and has to keep our eyes away from it!

I pray by this new development buhari and apc won't have to blame the past government for there ineffectiveness.am neither a wailer or a zombie just a concerned and pained nigeria that's has to que for hours to buy 5 liters of fuels for 800 to charge my phone.

It is not stable, not time for celebration, but a time of sober reflection on how to diversify the economy, in next ten years oil prices will go down to about $10 per barrel. US and EU is busy now preparing their countries for post fossil fuel era and some people are dancing awilo on top of this matter, we need to think ahead not living from hand to mouth

Nonsense...As if this will change the present condition of this country....

The morons will still go ahead and borrow.

Thank u JESUS, at least my salary will be increased. God please let the prize steady so that our economy will bounce back again while we work on diversification of our economy.

..

ShitHead:
The morons will still go ahead and borrow.

.. Even when it was over a $100 per barrel jona(the mighty clueless) still borrowed

All these una dance dance, them say fuel don dey abi e don cheap?

Abegii

Good

Thank God o!

Finally some Good news

Henrypraise:
I honestly pray d price stays down.

Let's diversify d economie, not depend on oil.

Zombies be like: sai baba d travelling is yielding result.

diversification is not a day's thing. Would you rather use the proceeds from a natural resource or would borrow to diversify? If only you understand the ripple effect of a low crude oil price.

Good news.

Good news

Allahu Arkbar!!!! Buhari no longer has excuses not to deliver Eldorado before 2019.We shall also note how much he would leave behind in the excess crude accounts.

Land not for sale, beware of my daughter, hateu2

Glory be to God Almighty we are getting somewhere

Way to go

thank God oh....food don ready 4 sum people

Sunnycliff:
Why do we still have our eyes so much fixed on oil? I think we are in the era of diversification and has to keep our eyes away from it!

Solid revenues from oil and diversification of the economy are not mutually exclusive. They work together where revenues are allocated towards infrastructure a they are in the Hon Minister for Finance budget 2016.

I pray the oil price hit 1 dollar per barrel or let Nigeria crude oil dry off so that our leaders will start thinking with their brain and diversify our economy.

Sunnycliff:
Why do we still have our eyes so much fixed on oil? I think we are in the era of diversification and has to keep our eyes away from it!

Dey dia dey Jonz!
#DancingAlanta