Failure to hit 2.3m bpd oil target puts FG’s 2019 budget on edge

By Adewale Sanyaolu

The Nigerian economy which relies on over 70 per cent of its revenue from oil may be in tougher times in 2022 as the Nigerian National Petroleum Corporation (NNPC) has slashed its official selling prices (OSPs) for Bonny Light and Qua Iboe crude oil for January loadings.

This was even as uncertainty has returned to oil markets at the end of the year as a new variant of COVID-19 combines with inflation fears to threaten demand.

According to Reuters, Bonny Light and Qua Iboe crude oil dated Brent is plus 24 cents and plus 34 cents per barrel, respectively in January.

The December differential for Bonny Light was plus 33 cents and for Qua Iboe plus 40 cents per barrel.

Loading programmes had earlier showed that exports of four of Nigeria’s main crude oil grades rises in December to 564,000 barrels per day (bpd) versus 507,000 bpd planned for November.

Meanwhile, a report by oilprice.com has said that predicting the price of oil is always difficult, but with an energy crisis in Europe, OPEC+ controlling production, the energy transition underway, and COVID-19 continuing, next year is particularly difficult to read

The global energy transition is facing plenty of problems, not least of which is rising costs, and will be a key factor to watch in 2022

Following the rebound in oil and gas demand in 2021, the market is headed to 2022 with renewed uncertainties about prices, demand, and the industry’s longer-term prospects as Omicron COVID cases spike and investors continue to press companies toward decarbonization.

Will oil and gas demand continue to recover and clean energy installations continue to surge next year? Or will risks lurking for some time materialise to hamper green energy rollouts and upend the rebound in global oil and gas demand?

The closer we get to the end of 2021, the more uncertain the 2022 outlook becomes, with Omicron spooking governments in Europe that have already started to tighten restrictions or re-impose strict lockdowns in the case of the Netherlands. The UK is not ruling out stricter measures, and many other European countries are tightening travel restrictions.

The Omicron impact on economies and fuel demand and the effect on oil demand recovery and prices will be a major theme throughout 2022, especially during the first few months of the year.

As difficult as it is to predict oil prices in “normal” circumstances, the uncertainties with the pandemic have made the task of forecasting even more difficult. Currently, outlooks range from oil averaging around $70 next year to hitting as high as above $100 per barrel at some point in 2022 or 2023.

OPEC sees a “mild and short-lived” Omicron impact on oil demand, while the International Energy Agency (IEA) expects a temporary slowdown in demand recovery due to the new variant, but not an entirely upended demand trend.

In the early days of the Omicron variant spreading, JP Morgan said that oil could soar to $125 per barrel next year and $150 in 2023 due to OPEC’s limited capacity to boost production.

OPEC left the door open to potential immediate adjustments in its oil production policy with the Omicron uncertainty, so the cartel’s actions would be an important driver of oil prices next year, along with the COVID developments.

Oil prices rising to $100 a barrel is unlikely, at least for any sustained period next year, Simon Flowers, Chairman, and Chief Analyst at Wood Mackenzie, wrote in a recent post discussing the key themes in oil and gas in 2022.

Some analysts expect a harsh colder-than-usual winter in the northern hemisphere to exacerbate the energy crisis in Europe and deplete its stockpiles of natural gas in storage which are already at a decade low for this time of the year. This could prop up demand for heating with fuels other than natural gas, including oil products, potentially driving up oil demand even if lockdowns limit gasoline consumption.

https://www.sunnewsonline.com/2022-gloomy-start-for-oil-sector-as-nigeria-slashes-oil-prices/

Ok

Damnnn niggar
And we depends on oil

Slash or No Slash, the oil we are so blessed with has been a curse in disguise and one of that has been gulped up by our able leaders past and present.

Nigerian politicians una well done

It is well

someone told me those people selling grounded pepper in bulk do mix it with other things such as millet.... joro.......ginger......wheat......flour... caprioca.....etc
they add one or more of this so they can get even more profits from their grounded pepper business....
please how true is this?

Islie:
Failure to hit 2.3m bpd oil target puts FG’s 2019 budget on edge



https://www.sunnewsonline.com/2022-gloomy-start-for-oil-sector-as-nigeria-slashes-oil-prices/

They are still wasting money looking for non existent oil in Bauchi and Gombe; rather than invest in renewable energy!

Ok

e be things

East and West Reportage
Sensational headlines and different content...
Demands might soar, prices might soar, infact it is uncertain but una say dem reduce price...


"As difficult as it is to predict oil prices in “normal” circumstances, the uncertainties with the pandemic have made the task of forecasting even more difficult. Currently, outlooks range from oil averaging around $70 next year to hitting as high as above $100 per barrel at some point in 2022 or 2023.

OPEC sees a “mild and short-lived” Omicron impact on oil demand, while the International Energy Agency (IEA) expects a temporary slowdown in demand recovery due to the new variant, but not an entirely upended demand trend.

In the early days of the Omicron variant spreading, JP Morgan said that oil could soar to $125 per barrel next year and $150 in 2023 due to OPEC’s limited capacity to boost production.

OPEC left the door open to potential immediate adjustments in its oil production policy with the Omicron uncertainty, so the cartel’s actions would be an important driver of oil prices next year, along with the COVID developments.

Oil prices rising to $100 a barrel is unlikely, at least for any sustained period next year, Simon Flowers, Chairman, and Chief Analyst at Wood Mackenzie, wrote in a recent post discussing the key themes in oil and gas in 2022."

Without oil, what use is Nigeria Delta.

Make them support those wey dey into agriculture or wey wan venture into it so as to boost the economy, they are actually giving support but it seems some people they corner am.

May God help us...

I hope we won't be sold out to slavery with the way things are going now.

Restructuring is the only solution.
Apc don finish Nigeria patapata

Wow

When I say that Biafra is the back bone of this shit hole country, children of shout waste will wail and rain curse and brimstone.
But just look common because my beloved Biafra can't meet ordinary target, the budget was on hold, just Imagine if we go, hunger will deal with them.

[quote author=Mko123 post=108876645]Q[/quote

I am waiting for to update this gibberish

Hmmm Naija

This a good development.

Should have moved away from oil a long time ago or at least moved from primary producer to secondary exporter

Damn!. It's high time the FG began massive retrenchment of workers in some unproductive sectors so that whatever they borrowed would be judiciously used and won't be for salary payments anymore but I doubt, because na dem people full there. Developing this country is a joke.. where just 2 civil servants are linked to over 300 houses when they're not dangote or otedola or elumelu( none of these people even own up to that despite their affluence ). I remember that fulani accountant at the ministry of power who was exposed by fashola, which made them remove the ministry from under him. He had over 50 houses in choice locations in abuja with Iver 50 exotic cars... l'ara owo epo wa naani. Free oyel money. The case is long forgotten. And we expect power to improve? What a joke!

When everybody was shouting diversification and investment in agriculture which used to be our mainstay before the advent of oil, they turned deaf ears because of the free money they were getting from oil. If I were Nigerian youths, I'd form a virile political party and infuse the same united spirit of endsars to chase these old cargos away. Their policies are archaic. They claim Nigerian population was over 60% youths yet they they had the impudence to block twitter, their means of livelihood. What an insult. Only God knows how many billions Nigerian youths doing business on twitter must have lost so far. This season used to be their boom period. I wish the youths could pay them back in their coin, come 2023 since they have the number.

Ok

If the Nigerian government had any sense, it will fvck oil and seek the fastest means to make Nigeria an outsourcing country for labour like Vietnam has done.

We should be exporting Nigerians and their skills globally.

Secondary schools and universities should have compulsory subjects that teach kids online high demand skills.

We will be earning excess dollars, far more than oil.

FVCK OIL AND GAS.

Islie:
Failure to hit 2.3m bpd oil target puts FG’s 2019 budget on edge



https://www.sunnewsonline.com/2022-gloomy-start-for-oil-sector-as-nigeria-slashes-oil-prices/

Nigeria is a useless country, can't they just diversify the economy for good.