Hope for the implementation of the 2019 budget was rekindled yesterday as crude oil price climbed around three per cent to rebound to $60 per barrel.

This followed the extension of talks between the United States and China in Beijing, which raised hopes that the world’s two largest economies would resolve their trade standoff.


The United States West Texas Intermediate (WTI) traded at $51.36 per barrel, up $1.58, or 3.17 per cent, the first time this year that WTI has topped $50.

Reuters reported that the international Brent crude rose by $1.63, or 2.78 per cent, at $60.35 per barrel.

Brent price hit last year’s high of $86 in October, a development that encouraged the federal government to predicate this year’s budget on oil price of $60, against the $50 per barrel oil price benchmark proposed in the Economic Recovery Growth Plan (ERGP).

The federal government also predicated the budget on the production of 2.3 million barrels per day of crude oil.

Also N305 was proposed as exchange rate to the dollar.

But before the presentation of the budget to the National Assembly, oil price dropped to $48, raising fears on the capacity of the federal government to fund the budget.

However, with the efforts by the Organisation of Petroleum Exporting Countries (OPEC) to reduce the excess inventory in the market, oil price rose by 12 per cent in December.

Both crude price benchmarks added to Tuesday’s two per cent gains and have now been on the rise for eight straight days – their longest rally since June 2017.

The trade talks in Beijing were carried over into an unscheduled third day yesterday, amid signs of progress on issues including purchases of US farm and energy commodities and increased US access to China’s markets.

“Talks with China are going very well!” United States President Donald Trump tweeted, without elaborating. State newspaper, China Daily said yesterday that Beijing was keen to put an end to its trade dispute with the United States, but that any agreement must involve compromise on both sides.

The World Bank expects global economic growth to slow to 2.9 per cent in 2019 from three per cent in 2018, it said in a semi-annual report released late on Tuesday.

More fundamentally, oil prices have been receiving support from supply cuts started at the end of 2018 by the OPEC and allies including Russia.

The OPEC-led cuts are aimed at reining in an emerging supply overhang, in part because U.S. crude output surged by around 2 million barrels per day (bpd) in 2018 to a record 11.7 million bpd.

However, US crude stocks fell less than expected last week, while gasoline and distillate inventories rose more than expected, the Energy Information Administration (EIA) said yesterday.

Distillate stockpiles, which include diesel and heating oil, rose by 10.6 million barrels, more than five times the expected 1.9 million-barrel increase, the EIA data showed.

https://www.akelicious.net/2019/01/hope-rises-for-2019-budget-oil-price.html

i wish we were in the time of &120 per barrel, buhari would have turn this country to a very powerful country like USA or RUSSIA. with the little resources available u can see the kind of infastructure he has laid.

A foolish country will keep relying on crude oil for its existence. But one day na one day and that crude will be obsolete...then will see how this pathetic nation will survive

Oil prices are naturally unsteady so unpredictable. Meanwhile, the cost of petrol will still be high in Nigeria while APC government subsidy will continue to boost

hope for them to steal more money

R

Good news

But that doesn't stopped FG from continuing with diversification of our economy. Oil prices can never be stable.

The World Bank expects global economic growth to slow to 2.9 per cent in 2019 from three per cent in 2018, it said in a semi-annual report released late on Tuesday.

This is nothing but good news.
We are moving in the right direction as a nation.
Thanking God we have a good President who is leading us through the right step to the right direction to the land flowing with milk and honey.
Gradually we will get there.
God bless our President MUHAMMADU BUHARI.

cenaman:
i wish we were in the time of &120 per barrel, buhari would have turn this country to a very powerful country like USA or RUSSIA. with the little resources available u can see the kind of infastructure he has laid.

Great post from a.great man.
You've said it all bro.

cenaman:
i wish we were in the time of &120 per barrel, buhari would have turn this country to a very powerful country like USA or RUSSIA. with the little resources available u can see the kind of infastructure he has laid.

Hmmmmm. That got me thinking seriously

ok

Choppings

Money that citizens won't see the impact

Please I need help

Am coming to Lagos for the first time and need to get to ikeja,they said first floor ikeja
Please someone help me with the direction
The bus will stop in Berger

Please help a sister
Thank u

cenaman:
i wish we were in the time of &120 per barrel, buhari would have turn this country to a very powerful country like USA or RUSSIA. with the little resources available u can see the kind of infastructure he has laid.

A bad worker alway quarrel with his tool.

Nigeria and confusion. But we read recently that FIRs generated 5.3 trillions and how can't such money be used to fund the budget? As well we still have some revenue generating agencies that could boost the revenue of the country. I think I need enlightenment on this issue.

Alas some good news

cenaman:
i wish we were in the time of &120 per barrel, buhari would have turn this country to a very powerful country like USA or RUSSIA. with the little resources available u can see the kind of infastructure he has laid.

What happened to the non-oil based economy promised by Buhari?

Se

Always just hoping on oil.

I mean I understand that Oil is the mainstay of our economy as at now, but should it remain the same? Should we be held at the mercy of capricious oil prices forever?

I'm sure Labor in Nigeria is cheaper than China, so how come Global Corporations haven't moved operations to Nigeria? Does our illiteracy rate have something to do with this?

There are so many other things Nigeria has to offer to be able to generate income rivaling that of Oil sales, but it seems once money is coming in from somewhere (oil in this case), we just get complacent and never bother exploring and exploiting other forms of income.

Amumaigwe:


What happened to the non-oil based economy promised by Buhari?

he is trying his best in that aspect.

Amumaigwe:


What happened to the non-oil based economy promised by Buhari?

To answer some critics, unfortunately we still have to rely on oil to survive.

OBJ and Jonathan had the chance to diversify but they didn't do that.

Under Buhari, it would be difficult to diversify without first stabilizing the economy which not stable at the moment and earning is very poor at the moment.

We got into recession in 2016 due to oil price dropping and in 2017 we got out of recession due to oil price rising.

We still have a very fragile economy. They need to fix infrastructure first and when there's savings, they can then look at other non oil sector for income.

Fix electricity. : It's only oil revenue that can fix this capital intensive infrastructure

Fix roads: It's only oil revenue that can fix this capital intensive infrastructure

Fix rail lines: It's only oil revenue that can fix this capital intensive infrastructure

Increase number of cargo delivery Ports.

Once above are done, Agriculture would come up. But for now, you need oil money badly

cenaman:
i wish we were in the time of &120 per barrel, buhari would have turn this country to a very powerful country like USA or RUSSIA. with the little resources available u can see the kind of infastructure he has laid.

. But this same government promised diversification.

HenryThegreat1:
. But this same government promised diversification.

in terms of diversification the present government have tried their best, take agriculture as a case study since we return to democracy 20yrs ago nigerians haven't take agriculture seriouse like they do for the pass 3yrs....

cenaman:
i wish we were in the time of &120 per barrel, buhari would have turn this country to a very powerful country like USA or RUSSIA. with the little resources available u can see the kind of infastructure he has laid.

Never has oil price gotten to 120dollars per barrel. The highest it attained was 110dollars per barrel. Stop misinforming people

Felicitalisco:
Please I need help

Am coming to Lagos for the first time and need to get to ikeja,they said first floor ikeja
Please someone help me with the direction
The bus will stop in Berger

Please help a sister
Thank u

Directions from Berger to Ikeja

Take a Danfo
From: Ojodu -Berger Bus stop
Heading Toward: Ikeja Underbridge
Get Off at: Ikeja Underbridge
Price: ₦100 - 150

Walk to your destination
Total Estimate: ₦100 - 150