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Coronavirus: Oil Price Fall Below $60 by dipoolowoo: 3:11am On Jan 25, 2020
By Adedapo Adesanya

Brent crude futures fell below $60 on Friday, posing a threat to Nigeria’s 2020 budget, which put oil benchmark at $60 per barrel, as the spread of the coronavirus in China continues to affect demand due to restrictions placed on travel.

The bearish performance for the Brent crude continued as it further dropped 2.14 percent equivalent to $1.31 to trade at $59.97 per barrel on Friday night at the global market.

Also, the US West Texas Intermediate (WTI) crude further moved down by 2.32 percent or $1.29 to trade at $54.30 per barrel. This performance was the lowest settlement for the American futures since November last year.

During the preparation of the country’s budget, oil prices were pegged at $60 per barrel because global economy issues like the US-China trade deal and the US-Iran conflict had helped prices moved up.
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However, with this unforeseen circumstances, the country’s hope of raising revenue to fund the this year’s budget is already under threat because the sale of the commodity is the main source of foreign exchange earnings for Nigeria.

This week started on the bullish note for oil prices, after military forces in Libya blocked oilfields which threatened to cut off the entire 1.2 million barrels per day oil production of the African OPEC member.

But on Tuesday, despite the continued blockade in Libya, oil prices started to slip as market faced a new challenge over the deadly coronavirus in China, which, analysts say could cut oil demand as travel restrictions in and around the area of the outbreak are already in place.
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The SARS CoV, better known as the SARS Coronavirus, is highly contagious and has put two Chinese cities on lockdown since Thursday as health authorities around the world scramble to prevent a global pandemic.

The coronavirus outbreak has so far killed 17 people and infected more than 800 people and to prevent this, a widespread travel restriction has followed, reducing regional travel meaning that the oil market could see a drop of 260,000 barrels per day in the global oil demand market—170,000 bpd of which would be in the form of jet fuel.

The virus has spread to South Korea, Japan, Thailand, Vietnam and the United States, among other places. On Friday, the CDC confirmed the second case in the United States and this may further threaten oil prices even with certain trends which normally helped prices took the backseat such as reports by the US Energy Information Administration (EIA) that inventory fell by 400,000 barrels for the week ending January 17.
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Even despite the disruption caused by the virus, the oil market is also faced by concerns of oversupply, as the International Energy Agency (IEA) said it there is expectations of a surplus of 1 million barrels per day in the first half of the year.
https://businesspost.ng/economy/trouble-for-nigeria-as-brent-falls-below-60-on-coronavirus-spread/

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Re: Coronavirus: Oil Price Fall Below $60 by InfernoNig(m): 3:56am On Jan 25, 2020
In other words. (Asia) China is our biggest customer. Chai E don finish oooo.

17 Likes

Re: Coronavirus: Oil Price Fall Below $60 by budaatum: 4:11am On Jan 25, 2020
Our biggest threat is probably friendship between US and Iran. If sanctions get lifted and Iran oil gets to market the price would likely drop to sub $30 a barrel then we'd really cry!

14 Likes 3 Shares

Re: Coronavirus: Oil Price Fall Below $60 by allthingsgood: 4:37am On Jan 25, 2020
Some people are sick and insane

When the price of oil went up u guys shouted that Nigeria will suffer cos our reserves will fall on fuel importation, so now that the price of oil has fallen, how cone it's still a bad news Oloshi

3 Likes 2 Shares

Re: Coronavirus: Oil Price Fall Below $60 by Esseite: 4:45am On Jan 25, 2020
allthingsgood:
Some people are sick and insane

When the price of oil went up u guys shouted that Nigeria will suffer cos our reserves will fall on fuel importation, so now that the price of oil has fallen, how cone it's still a bad news Oloshi

Either ways, the tax payers are at the bottom end..

1 - High crude = high petrol subsidy = More tax to cover shortfall..
2 - Low crude = low petrol subsidy = low Govt revenue = More tax to cover shortfall..

We are not designed to win...

61 Likes 7 Shares

Re: Coronavirus: Oil Price Fall Below $60 by largehead: 4:47am On Jan 25, 2020
lipsrsealed

I don't see a better future for Nigeria.

9 Likes 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by AmazingDesigns: 4:49am On Jan 25, 2020
Damn. the virus is really spreading.

Pray the epidemic ends soon.

Re: Coronavirus: Oil Price Fall Below $60 by money121(m): 5:03am On Jan 25, 2020
Ok

1 Like

Re: Coronavirus: Oil Price Fall Below $60 by Dreyl(m): 5:12am On Jan 25, 2020
Things are really getting out of hand, in few years to come, this same oil will be valueless, I pray the economy of Nigeria wouldn't sink by then.

1 Like 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by Roon9(m): 5:17am On Jan 25, 2020
I pray this doesn't enter naija

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Re: Coronavirus: Oil Price Fall Below $60 by odave: 5:18am On Jan 25, 2020
They have invented another virus! It could be a result of medical research gone wrong or deliberate one

I pray it doesn't enter Africa (Nigeria) coz my worry isn't about oil price but effect on humans and how to control and contain it.

Afterall, when oil price was over $100 per barrel we didn't see the effect. A drop in price would mean less money to embezzle.

12 Likes 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by olaboy33(m): 5:22am On Jan 25, 2020
At the end the world always survives.
This will not be an exception.

Things will get back to normal.

1 Like

Re: Coronavirus: Oil Price Fall Below $60 by manneger2: 5:28am On Jan 25, 2020
InfernoNig:
In other words. (Asia) China is our biggest customer. Chai E don finish oooo.
Some people don't know anything, we are talking of price of oil all over the world fall, u are saying Asia is our biggest customer as if the price that fall is Nigeria oil price,

10 Likes 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by odave: 5:28am On Jan 25, 2020
Esseite:


Either ways, the tax payers are at the bottom end..

1 - High crude = high petrol subsidy = More tax
2 - Low crude = low petrol subsidy = low Govt revenue = more tax.

Lemme modify for you

1. High crude = high petrol subsidy = more tax = more fund to embezzle

2. Low crude = low petrol subsidy = low govt revenue = more tax = more fund to embezzle

Its a win win for the politicians, but for us citizens... grin

31 Likes 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by Jackyboy: 5:29am On Jan 25, 2020
Wetin boma no go see and hear for Abonnema Wharf waterside........ph

E no go good oh....... cool cool cool
Re: Coronavirus: Oil Price Fall Below $60 by wink2015: 5:29am On Jan 25, 2020
Nigeria should go and face Agriculture.

Northern Nigeria political leadership that is afraid of operations Amotekun may as well know that the biggest threat to Nigeria 's unity is not the so called "regional army" that the likes of Balarabe Musa, Junaid Mohammed, Minister Shehu Malami is referring to.

The biggest threat is a country that is Nigeria that refuses to explore its capacity to maximise its economic and food security.

The monoproduct economy of Nigeria which previous government starting from the military administration refuses to change is responsible for the TIGHT CORNER Nigeria is finding itself.

The Buhari administration has even shot itself by closing the border.

Closing Nigeria 's border is not sustainable.

5 Likes 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by Tajbol4splend(m): 5:31am On Jan 25, 2020
Oil loses its value everyday, someday it's not going to have any value no more

1 Like

Re: Coronavirus: Oil Price Fall Below $60 by StrikeBack(m): 5:35am On Jan 25, 2020
See Us see trouble
Re: Coronavirus: Oil Price Fall Below $60 by Resrguru: 5:35am On Jan 25, 2020
Oil price is very volatile ànd unreliable
Re: Coronavirus: Oil Price Fall Below $60 by tizzle(m): 5:36am On Jan 25, 2020
It's so sad to hear that the price of crude will affect the 2020 budget... the sooner we start funding the budget from other sources the better for us.. Meanwhile the drop in price is just temporary.. it's going to go back up and would average over $60 by the end of the year.

4 Likes 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by wink2015: 5:38am On Jan 25, 2020
NORTHERN NIGERIA GO AND FACE AGRICULTURE.

YOU HAVE THE VAST LAND IN ABUNDANCE

5 Likes 2 Shares

Re: Coronavirus: Oil Price Fall Below $60 by Esseite: 5:40am On Jan 25, 2020
Please let's not just resort to prayers like our normal tradition.. let's put in work aswell.

4 Likes 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by fatymore(f): 5:45am On Jan 25, 2020
Is too early for this in this new year.

Late last year, the speculation was oil price was going to increase,

This Chinese can't be trusted faa.

Thank God we have gone into diversification of the economy.

Good Morning Naija, if you wanna sleep well, check my siggy

1 Like 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by Nobody: 5:45am On Jan 25, 2020
allthingsgood:
Some people are sick and insane

When the price of oil went up u guys shouted that Nigeria will suffer cos our reserves will fall on fuel importation, so now that the price of oil has fallen, how cone it's still a bad news Oloshi

It's the structure of the Nigerian state/society. head or tail, the ordinary citizen loses.

If crude oil price is high, subsidy costs are high so pump price has to be increased. If the price of crude goes down, receipts from sales go down too and government struggles to fund their dubious budget via increased taxes on the citizens...

In Nigeria, political office holders, their business proxies (Dangote, etc) and civil servants are more or less feeding on the flesh of the regular citizens

4 Likes 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by Dozie32(m): 5:46am On Jan 25, 2020
For All my fellow nairalanders, I pray that God continues to bless United State of America.. Amen!

1 Like

Re: Coronavirus: Oil Price Fall Below $60 by philip0906(m): 5:52am On Jan 25, 2020
Dozie32:
For All my fellow nairalanders, I pray that God continues to bless United State of America.. Amen!

1 Like

Re: Coronavirus: Oil Price Fall Below $60 by Nobody: 5:53am On Jan 25, 2020
See gobe abi see buhari
Re: Coronavirus: Oil Price Fall Below $60 by ForeThinker: 5:55am On Jan 25, 2020
:Waawu
Re: Coronavirus: Oil Price Fall Below $60 by whirlwind7(m): 6:02am On Jan 25, 2020
budaatum:
Our biggest threat is probably friendship between US and Iran. If sanctions get lifted and Iran oil gets to market the price would likely drop to sub $30 a barrel then we'd really cry!

We'd really cry?

Seem like you're part of govt that benefits from crude oil sales, and not the masses. Your "we" in this case, I'm sure, isn't referring to the poor folks in the country that successive govt had taken turns to anally rape.
Majority (including me) don't care if oil plummets to $1 per barrel. Actually, I pray for that scenario.

3 Likes

Re: Coronavirus: Oil Price Fall Below $60 by handsomeyinka(m): 6:02am On Jan 25, 2020
..
Re: Coronavirus: Oil Price Fall Below $60 by VenusEAGLE: 6:03am On Jan 25, 2020
I believe Nigeria has a future beyond oil

1 Like 1 Share

Re: Coronavirus: Oil Price Fall Below $60 by whirlwind7(m): 6:03am On Jan 25, 2020
wink2015:
Nigeria should go and face Agriculture

Northern Nigeria political leadership that is afraid of operations Amotekun may as well know that the biggest threat to Nigeria 's unity is not the so called "regional army" that the likes of Balarabe Musa, Junaid Mohammed, Minister Shehu Malami is referring to.

The biggest threat is a country that is Nigeria that refuses to explore its capacity to maximise its economic and food security.

The monoproduct economy of Nigeria which previous government starting from the military administration refuses to change is responsible for the TIGHT CORNER Nigeria is finding itself.

The Buhari administration has even shot itself by closing the border.

Closing Nigeria 's border is not sustainable.

Huh

Face Agriculture grin

Let me help you a bit here.
It doesn't matter what source of revenue the country faces. So long as we are running this type of shitty political system, nothing will work.

Now, concerning agriculture, Naija only depends on farming. This is the branch of agriculture we largely practice, with little to no value addition.
Those who make serious money are the ones who process agric products and add value to it, then make more money.
Nigeria has not and isn't ready to provide what would add value to agriculture.
Do you know what farmers even go through just to bring out their produce to the markets? The numerous extortion check points mounted by customs and police to rip off farmers transporting their produce to markets....Walahi, you wouldn't want to become a farmer in this country. Should I mention herdsmen nuisance too?

5 Likes

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