Brent futures yesterday went down 0.8 percent at $54.6 barrel per day (bbl) as West Texas Intermediate, WTI crude was down 1.2 percent at $51.57/bbl.

This is even as the Energy Information Administration, EIA’s forecast that U.S. crude oil production will rise to 9 million bbl this year with another 500,000 bbl increase in 2018.FXTM Research Analyst Lukman Otunuga, told Vanguard that, WTI Crude was exposed to further losses on Wednesday after the shocking increase in United State fuel inventories and decline in Chinese demand revived concerns of the excessiveoversupply in the global markets.

He noted that, the resurgence of U.S shale production could undermine the efforts of Organisation of the Petroleum Exporting Countries, OPEC, and Non-OPEC members in mitigating the global oversupply consequently leaving oil prices vulnerable.He added, “There is a threat of the OPEC production cut deal falling apart in the future if U.S shale continues to pump incessantly.


Although oil prices were initially buoyed by the optimism over OPECand Non-OPEC members achieving roughly82 percent compliance with its production cut, the big elephant in the room known as U.S shale should limit upside gains. “The breakdown below $52 on WTI could spark a further selloff lower towards $51.”

http://www.vanguardngr.com/2017/02/crude-oil-prices-plunge/

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US shale producers are coming back and I think the market has been underestimating their ability to react. The market must act fast before things fall apart as this will be against our sale... The era of oil has really gone and we must not see oil as all in all.

Diversification of the economy is not an option, it is a must.

Not a good one for a depressed and recessed economy like Nigeria

In as much as the price of cruse is still above our budget benchmark, there is no much cause yet for an alarm.

Nigeria is the only country with diminishing asset that is not preparing for a future without oil.

Its a natural phenomenon in the financial world. There are no perfect slope for a currency or commodity either going up or down, it is always formed on a zig-zag or wave pattern. It will go up and down but maintains a perfectly upward or downward movement. Take ur Naira for example, its didnt fly to 500 in a day, it goes up for 3naira today, reduce to by 1 naira and increase by 4naira next tomorrow. With this scenario, u can identify its upward progression by the number of reduction compared to increment. Crude oil will still go up and definitely come down again cos market condition are always dynamic and unpredictable. "Say what? say what? anything can happen"

There will always be a way out

AntiWailer:
Diversification of the economy is not an option, it is a must.

Indeed it is.

We need a stable source of foreign exchange....and oil is not that stable source.

Crude oil

Buhari's life plunges further.

Hmm

Mchew the price should just reach 0 dollars let me rest

Nigeria as a country hasn't shown this would help us in anyway get back on our feet.

And the wise one/saint is busy searching for oil upandan in the north.

Only if our Government knows the meaning of this, cos I see dem all clueless

We u re let me no

I don't know where to start from again.. All the test we did for my sister when she was in General Hospital was rejected at LUTH , now we have to start all over again. I still have 50k left with me from the donation we got earlier... But seeing the cost of the new test they asked us to do at PATHCARE LAB INSIDE LUTH the 50k can't do anything.. She has not been admitted ooo.. Not to talk of operations fee.. The doctor said she has chances of survival because from the test we did yesterday the doctor said some things can be corrected. Now i am thinking of going into the street to seek for assistance with a placard. She is in Pain. Serious pain

PDP caused this and we must all blame dem....abi no b so?

That's the reality (fluctuating) some goats will be saying the price has soared up to $60.

Bad omen dey follow Buhari

The senseless apc government has no way out of the recession they plunge nigeria into.

Oil is their only hope. Clueless individuals.

PERSONALLY I DON'T GIVE A DAMN ANYMORE. IF PRICE IS UP, NO CHANGE N IF D PRICE IS DOWN, STILL NO CHANGE. SO TELL ME Y I SHOULD EVEN CARE.

To be honest Nigerian Newspapers are messed up. Brent crude oil is the most appreciated crude and currently trading above $55 a barrel. WTI is $52.

If crude oil prices falls, it's bad news for Nigerians.
If crude oil rise, it's still bad news, because importers & marketers will say their costs have gone up & will have to increase pump prices.
Is petroleum really a blessing or curse for black man?

adecz:
If crude oil prices falls, it's bad news for Nigerians.
If crude oil rise, it's still bad news, because importers & marketers will say their costs have gone up & will have to increase pump prices.
Is petroleum really a blessing for black man?

Well, if we increased domestic refining capacity, it could be a blessing.

fowosh:
PDP caused this and we must all blame dem....abi no b so?

Not exactly. Nigeria from Independence has been dependent on exporting raw materials, and importing stuff we could have made easily at home.

That is not good economic practice

Another bad news for Nigeria.