Global oil investors have started holding back on growing U.S. oil rigs, even as OPEC promise to extend production cuts through the end of 2018.

U.S. oil rigs rose to 749 last week, the largest level since September, according to Baker Hughes report. Prompting investors and traders to pullback on concern that growing Shale production will disrupt of OPEC ongoing strategy.

“The OPEC deal will mostly work for non-OPEC,” said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt. “Even if OPEC delivers the cuts promised, and prices stay high long enough, the main result will be that U.S. shale adds on close to 1 million barrels a day of additional production.”

Global benchmark crude, Brent crude shed 0.9 percent to $63.16 a barrel, down from $63.73 it closes on Friday, while the US West Texas Intermediate dropped 1 percent to $57.80 a barrel down from $58.32 recorded on Friday.

In effort to further balanced global crude oil, the OPEC last week in Vienna included Nigeria and Libya in production cuts by capping Nigeria production at 1.8 million barrel per day and Libya at 2017 production level.

The Nigerian Minister of State for Petroleum Resources, Dr. Ibe Kachikwu said: “Our current production is 1.75, we are still below the 1.8 that was the benchmark which is comfortable but you’re going to see a lot more pressure as we go into next year.”

“Our contribution is fairly limited because we are still lacking in that capacity to reach the marks anywhere soon.”

http://investorsking.com/oil-prices-moderate-rising-u-s-oil-rigs/

It's basically simple economics the higher the price of the oil, the higher the rig count.

u

Kk

More money for Nigerian politicians to share. This has never changed the life of a common man.

Let the oil dry up so that we have get our senses back to think out of the box and go back to basics - Agriculture

Hmm

.

L I'll

Front page hmmmmm.

Won't this still pave way for more money for these Guys UP there to embelze.

Well for now let's do this
Say NO to #REFORMSARS
Say YES to #EndSARS

When it was $120 did average Nigerian enjoy the oil boom.

ANBAKO:
More money for Nigerian politicians to share. This has never changed the life of a common man.

Let the oil dry up so that we have get our senses back to think out of the box and go back to basics - Agriculture

Agriculture has the same issues as oil...we would just be generating money for the politicians to share ...and yes, agriculture is subject to the same price fluctuations as oil. (Ask Mali and Burkina faso, who rely on cotton, why it isn't working for them)

Also, you need a guaranteed market for agric products.

Yes, it worked back in the 1960's...when we had a guaranteed market in the UK. Not anymore.

Okay nah

babdap:
When it was $120 did average Nigerian enjoy the oil boom.

We didn't enjoy a damn thing.... More money would still be Embezzled!.....

I want it to reach 200$ let see which other excuses dullard buhari will give

ANBAKO:
More money for Nigerian politicians to share. This has never changed the life of a common man.

Let the oil dry up so that we have get our senses back to think out of the box and go back to basics - Agriculture

I also hope so

This US shale oil is a wild card in the industry.

It's changed so much forecast. 2019 will be bearish.

BruncleZuma:
It's basically simple economics the higher the price of the oil, the higher the rig count.

Nope....it is not. The oil sector has what is called inelasticity of demand, the demand is always there. The only thing that can reduced price is a huge oversupply. That is what the US is doing. They are deliberately over supplying the market to drive down prices. It makes economic sense to them, as they are the largest importers of crude.

tempest01:


Nope....it is not. The oil sector has what is called inelasticity of demand, the demand is always there. The only thing that can reduced price is a huge oversupply. That is what the US is doing. They are deliberately over supplying the market to drive down prices. It makes economic sense to them, as they are the largest importers of crude.

https://en.m.wikipedia.org/wiki/Seven_Sisters_(oil_companies)

https://oilprice.com/Energy/Oil-Prices/The-Economy-Needs-Higher-Oil-Prices-Goldman-Sachs.html

the 2018 Nigerian budget was based on the daily production of 2.3million barrels per day while OPEC have placed us on 1.8 million barrels per day, so the 2018 budget is already messed up. the only thing buhari thinks about is oil, imposition of taxes, raising of fees(like passport, car plate number etc) and acquiring debt without anything to show for it.

It'll take a round table agreement from OPEC and non-OPEC countries to actually regulate oil prices and curb the excesses of shale oil.

The US Is making things difficult for a lot of countries.