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Oil Price Inches Towards $70, 44% Above Benchmark - Business - Nairaland

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Oil Price Inches Towards $70, 44% Above Benchmark by marryjesus: 5:58am On Dec 28, 2017
Crude oil price has risen by $20 per barrel above Nigeria’s benchmark of N45 a barrel in the 2018 proposed yearly budget.In the proposed N8.6 trillion ‘Budget of Consolidation’ presented by President Muhammadu Buhari to the National Assembly for approval, crude oil benchmark price was put at an average of N45 per barrel, based on low benchmark price of $35, medium ($45) and high ($55) scenarios, while production was set at 2.3 million barrels per day.

At the close of Tuesday trading hour, global benchmark, Brent crude oil price was $65.25 a barrel, while the West Texas Intermediate (WTI) settle at $58.47 per barrel.What this means is that, at Nigeria’s production peg of 2.3 million proposed in the 2018 budget, the country will be making an excess crude oil earnings of $46 million per day (N16.5 billion), if crude oil price remain at $65 a barrel in 2018.

Brent crude oil has remained at above $60 a barrel level in the last few days, sparking talks that this could be the new floor under oil prices and that $70 a barrel oil in short term is now not only a producers’ wildest dreams, but a reality.This also shows that the crude oil production capping embarked upon by members and non-members of the Organisation of the Petroleum Exporting Countries (OPEC) is yielding positive result.


For example, as of November 2017, the OPEC and participating non-OPEC producing countries achieved an impressive highest conformity level of 122 per cent, following the pattern of high performances in the past months.This, OPEC said is coupled with the aforementioned amendment of the Declaration of Cooperation, is an unequivocal demonstration of the steadfast commitment of participating countries to continue working towards the achievement of the goal of rebalancing the market and putting it on a sustainable stable footing.

According to OPEC, The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) expressed great satisfaction with the results and sustained level of high conformity with the voluntary production adjustments, and encouraged all participating countries to achieve full conformity for the benefit of producers and consumers alike.

The Minister of State for Petroleum Resources, Ibe Kachikwu, Nigeria was capable of meeting and exceeding the 2.3 million barrels per day crude oil production and oil revenue benchmarks in the proposed 2018 budget before the National Assembly for approval.“First, the 1.8 million barrels per day was not a cap fixed for Nigeria by OPEC, but an expectation,” he explained.

“Also, Nigeria’s oil output does not include condensate production of 350,000 barrels per day. So, between 1.8 million bpd and 350,000 bpd, we are doing 2.2 million barrels per day. We can produce more than the 1.8 million bpd if we have the capacity.”

Group General Manager, Corporate Planning and Strategy, Bala Wunti, said the current production capacity for the country was more than 2.3 million barrels per day, noting, however, that due to the insecurity in the Niger Delta region, the full production capacity has not been achieved over the years. “The 2018 crude oil national production projection for Joint Ventures, Modified Carry Arrangement or External Financing, Production Sharing Contracts, Independents, Marginal Fields and Service Contracts is about 2,298,000 barrels per day,” Wunti said.

He added that the 2018 price projection on the long term price assumption was based on price scenarios of $35 (low), $45 (medium) and $55 (high), stressing that most price forecasting agencies thought that the medium price scenario had the highest probability of occurrence which the 2018 budget was hinged upon. “Consequently, a conservative price projection of $45 per barrel was used as benchmark for crude price for 2018 budget,” Wunti stated.

http://www.akelicious.com/2017/12/oil-price-inches-towards-70-44-above.html

1 Like

Re: Oil Price Inches Towards $70, 44% Above Benchmark by Desyner: 6:00am On Dec 28, 2017
Nice.
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Millz404(m): 7:17am On Dec 28, 2017
Even if it is $200, buhari will not still perform.
He is that useless to Nigeria

50 Likes 3 Shares

Re: Oil Price Inches Towards $70, 44% Above Benchmark by princeSammyz: 7:18am On Dec 28, 2017
If oil price could help, it would have during the 2013/2014(or so) boom. We will still use the money to subsidize petrol and kerosene.

6 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by countsparrow: 7:18am On Dec 28, 2017
This can only reflect in the next budget and our reserves, that is if they don't finish the money by carrying out fictitious projects and all...

Stealing is a disease (madness), many who have the disease don't even know they have it...

6 Likes 1 Share

Re: Oil Price Inches Towards $70, 44% Above Benchmark by OgbeniOlaLekan: 7:18am On Dec 28, 2017
Good way to go
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 7:19am On Dec 28, 2017
Things are coming back to shape, but am quick to ask, for how long will it be stable or rise?...When its rising or stable, we can better plan but when its unstable and falling, its a sign of doom
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Edu3Again: 7:19am On Dec 28, 2017
The Niger Delta where the oil is got from won't enjoy this increase.

Only the North will see the benefits of the oil from the South.

Na why I say these two tribes the igbos and Yorubas are dumbasses.

Niger Delta people, una too na dumbass.
Dem just dey tell una say, they will they shall.
Meanwhile status quo remains the same.

Whole South of Nigeria is full of dumbasses


15 Likes 1 Share

Re: Oil Price Inches Towards $70, 44% Above Benchmark by Atiku2019: 7:20am On Dec 28, 2017
While we buy refined fuel at 300 Naira sad angry


7 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 7:20am On Dec 28, 2017
Bad news

1.We still need oil at $123 to balance the books.

2.We need to pay off debts incurred due to oil price crash PLUS the fact that we have not reached the minimum benchmark we need.

3.We need to diversify

6 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by eazyjakes(m): 7:21am On Dec 28, 2017
Dis looks gud only we wiĺl eventually use d excess proceeds to fight a technically defeated boko haram!

3 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by topcii(m): 7:21am On Dec 28, 2017
its still Niger delta feeding the nation.

14 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by omojeesu(m): 7:21am On Dec 28, 2017
Good. Very good. May it continue to rise.
Re: Oil Price Inches Towards $70, 44% Above Benchmark by ayoxx69(m): 7:21am On Dec 28, 2017
Well, lets now ask the government, will that improve the economy of this country?

3 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 7:23am On Dec 28, 2017
Atiku2019:
While we buy refined fuel at 300


Sai Buhari grin

Deregulation is the answer....

You want fuel at N87.....you find the billions of dollars needed to pay for subsidy.

APC has not handled the fuel crisis well....but when people like you protested against deregulation back in 2012...you destroyed our only good chance to solve this issue.

9 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by sanandreas(m): 7:23am On Dec 28, 2017
Niger Delta is still feeding the nation with her land flowing with milk and honey. We need one billion dollars just like bokoharam for peace sustained.

13 Likes 1 Share

Re: Oil Price Inches Towards $70, 44% Above Benchmark by lost24: 7:24am On Dec 28, 2017
Good news

Hope it stay that way

It will boost d economic n dollar will fall if the government add to d saving of the country

2 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by searay(m): 7:24am On Dec 28, 2017
A bad manager is a bad manager no matter the availability of good resources

19 Likes 1 Share

Re: Oil Price Inches Towards $70, 44% Above Benchmark by Bede2u(m): 7:24am On Dec 28, 2017
This topic should be screen grabbed. We shall use it to bury APC and Buhar in 2019 when that start complaining that low oil prices made them not to perform. They claim oil sold above $100 during GEJ regime, but they never say for how long it remained at that

16 Likes 3 Shares

Re: Oil Price Inches Towards $70, 44% Above Benchmark by IMASTEX: 7:24am On Dec 28, 2017
Well, I may not consider it a good news because it means more cash to be shared at the top. How on earth will a fisherman catch & sell his fresh fish for #10 per one. Then go back again to buy the same fish when dried at #100. When it will cost him nothing to get the fish dried himself in the fist place. This country is under a curse.

12 Likes 1 Share

Re: Oil Price Inches Towards $70, 44% Above Benchmark by mccoy47(m): 7:26am On Dec 28, 2017
Buhari would still hv an excuse for failure!

4 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by Franco93: 7:26am On Dec 28, 2017
more money to be embezzled

4 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by 1nigeriamyfoot: 7:27am On Dec 28, 2017
Buhari will still wail!

4 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by ManirBK: 7:28am On Dec 28, 2017
good development

Re: Oil Price Inches Towards $70, 44% Above Benchmark by BeijinDossier: 7:28am On Dec 28, 2017
Buhari and his team will still squander the money and borrow more, so what is the need.

3 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by hucienda: 7:29am On Dec 28, 2017
No more excuse.

2 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by chloride6: 7:31am On Dec 28, 2017
Did I see oil and $70 in the same sentence? grin

You want shale to be profitable abi?
Re: Oil Price Inches Towards $70, 44% Above Benchmark by ManirBK: 7:31am On Dec 28, 2017
BeijinDossier:
Buhari and his team will still squander the money and borrow more, so what is the need.

3 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by tribalistseun: 7:31am On Dec 28, 2017
Buhari and his 40 thieves right now,

Time to start our own looting spree.if babachir lawal can loot N500,000,000 under Aso Rock roof, how much more Amaechi and others with their ridiculous budget padding numbers

9 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by talktrue1(m): 7:32am On Dec 28, 2017
Pms N200 per liter loading

4 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by tribalistseun: 7:34am On Dec 28, 2017
Militant shall resume next year, cos Buhari just want to use our oil for Northerners development

5 Likes

Re: Oil Price Inches Towards $70, 44% Above Benchmark by Histrings08(m): 7:35am On Dec 28, 2017
Dem no go talk now...

3 Likes

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