₦airaland Forum

Now that Donald Trump is in control of Venezuela’s oil, he is likely to increase oil production and flood the global market, which could push prices lower. If that happens, oil could trade below Nigeria’s budget benchmark.

In the coming months, as the oil market becomes more supplied, Nigeria’s oil revenue may decline. This makes the recent tax reforms and additional levies introduced by the Nigerian government look timely, as they are aimed at boosting non-oil revenue.

Going forward, we could still see higher inflation, increased cost of living, and currency pressures, but the final outcome will depend largely on how well the government manages the situation.

Go and study the history of Venezuela first. The kind of capitalism you are thinking about is completely alien to Venezuela and it's going to be difficult for anyone to go in there to lift oil without being destroyed by guerrilla tactics.

This is a time oil prices will go up once it becomes full scale hijack of their government by US. The reason why oil prices didn’t change earlier was because oil was still being lifted despite the US blockade.

Why do you think they were able to do it? They own their land and know how to navigate it. This was the same edge the Taliban had over US in Afghanistan. Things will remain at stalemate until US midterm elections and the Republicans will likely lose the US congress and senate and his impeachment will start.

He will likely become a casualty of his own actions.

FreeStuffsNG:
Go and study the history of Venezuela first. The kind of capitalism you are thinking about is completely alien to Venezuela and it's going to be difficult for anyone to go in there to lift oil without being destroyed by guerrilla tactics.

This is a time oil prices will go up once it becomes full scale hijack of their government by US. The reason why oil prices didn’t change earlier was because oil was still being lifted despite the US blockade.

Why do you think they were able to do it? They own their land and know how to navigate it. This was the same edge the Taliban had over US in Afghanistan. Things will remain at stalemate until US midterm elections and the Republicans will likely lose the US congress and senate and his impeachment will start.

He will likely become a casualty of his own actions.

You think this is the first time the US has been arresting presidents in South American countries. Just read history.

Before the US arrested the former president of Venezuela, they had been targeting guerrillas, taking down drug cartel boats, and seizing oil tankers moving out of the country in order to destroy the economy. By the way, if the guerrillas are so strong, why didn’t they stop the US from taking Maduro out of his own high-security military base?

For your information, the vice president of the country has fled to Russia. That means the collapse of the Venezuelan government has already begun. Maduro’s generals were loyal to the money from oil; now that the US controls the oil fields, those generals have no reason to fight for a leader who is in a jail cell in New York.

In a press conference, Trump said the US now controls the oil fields of the country and will increase production and flood the market. watch and see as the price of oil falls

The US midterm election won’t affect Trump because he can do what he likes on foreign policy.

On the flip side, insurgents might blow up Venezuela's oil so it can't be exported, and that would explode oil prices. But I see FreeStuffsNG has already explained this scenario so I shan't belabour the point.

Just think what we would do if it were Nigeria and some foreign country deposes our president and tries to steal our oil. I'm very certain we'd blow our oil up so it can't be stolen.

budaatum:
On the flip side, insurgents might blow up Venezuela's oil so it can't be exported, and that would explode oil prices. But I see FreeStuffsNG has already explained this scenario so I shan't belabour the point.
Just think what we would do if it were Nigeria and some foreign country deposes our president and tries to steal our oil. I'm very certain we'd blow our oil up so it can't be stolen.

Which insurgents, the ones jubilating in the streets of Caracas or the ones in Iragbiji?
In coming weeks, the real winner of the last election will be sworn in. Then Drill Baby Drill will be activated. The US controlling Venezuela oil is not to exploit them but to prevent China accessing the oil.

If crude oil price crash in the international market?
What about the price of petrol in Nigeria?

Increase and decrease in crude oil output and prices are determined by opec so Trump action has no effect

Help me ask the multitude of fools we have on NL.

VeeVeeMyLuv:
If crude oil price crash in the international market?
What about the price of petrol in Nigeria?

Many of you talk without facts. Venezuela oil production is even smaller than Nigeria's own. While they have the largest oil reserve in the world, most of it is commercially not viable

motymop:
You think this is the first time the US has been arresting presidents in South American countries. Just read history.

Before the US arrested the former president of Venezuela, they had been targeting guerrillas, taking down drug cartel boats, and seizing oil tankers moving out of the country in order to destroy the economy. By the way, if the guerrillas are so strong, why didn’t they stop the US from taking Maduro out of his own high-security military base?

For your information, the vice president of the country has fled to Russia. That means the collapse of the Venezuelan government has already begun. Maduro’s generals were loyal to the money from oil; now that the US controls the oil fields, those generals have no reason to fight for a leader who is in a jail cell in New York.

In a press conference, Trump said the US now controls the oil fields of the country and will increase production and flood the market. watch and see as the price of oil falls

The US midterm election won’t affect Trump because he can do what he likes on foreign policy.

The history of US involvement in Venezuela is quite long and chequered. If you look back in history, it has mostly been about oil. In 1948, when Dictator Marcos Pérez Jiménez overthrew the elected president, Rómulo Gallegos, and seized power, he was supported by the US. Why? He was anti-communist and his regime allowed and supported the exploitation of the country's natural resources by the American oil industry. When Hugo Chavez (who was more of a socialist) came to power, he upturned all these and began the drive for nationalization under his socialist "Bolivarian Revolution" (continued by Maduro). The US wasn't pleased and throughout the Chavez presidency it was one issue or another. The present invasion, a bold move considering the narco, the battered state of the Venezuelan economy might be justified. It however doesn't hide the fact that the major driving force is oil. It has always been about the Venezuelan oil. The US is only using this opportunity to yes, assert control over Venezuela's abundant oil resources.

hakeemhakeem:
Increase and decrease in crude oil output and prices are determined by opec so Trump action has no effect

You're not entirely correct. Us is still one of the biggest buyers of international crude. If they have access to cheap crude in Venezuela, this will affect global demand. A weakening of global oil demand will bring prices down.

So for Nigeria, while falling crude prices will put pressure on government revenue, on the flip side, prices of petroleum products will also fall leading to some relief for the common man.

Overall let's continue to observe as things unfold.

motymop:
You think this is the first time the US has been arresting presidents in South American countries. Just read history.

Before the US arrested the former president of Venezuela, they had been targeting guerrillas, taking down drug cartel boats, and seizing oil tankers moving out of the country in order to destroy the economy. By the way, if the guerrillas are so strong, why didn’t they stop the US from taking Maduro out of his own high-security military base?

For your information, the vice president of the country has fled to Russia. That means the collapse of the Venezuelan government has already begun. Maduro’s generals were loyal to the money from oil; now that the US controls the oil fields, those generals have no reason to fight for a leader who is in a jail cell in New York.

In a press conference, Trump said the US now controls the oil fields of the country and will increase production and flood the market. watch and see as the price of oil falls

The US midterm election won’t affect Trump because he can do what he likes on foreign policy.

Pls verify your sources before posting fake fables. Which US controls Venezuelan oil and which VP has fled to Russia? Or you think Venezuela is same as Panama?

budaatum:
On the flip side, insurgents might blow up Venezuela's oil so it can't be exported, and that would explode oil prices. But I see FreeStuffsNG has already explained this scenario so I shan't belabour the point.

Just think what we would do if it were Nigeria and some foreign country deposes our president and tries to steal our oil. I'm very certain we'd blow our oil up so it can't be stolen.

Hahahahahahaha!
These people sef, you have been shouting "Awa oil" upandan for some days now. You shout it more than the Niger Delta people that the oil is in their backyard.

Where you want see oil blow up? For Ogbomosho?

Venezuela oil is difficult to explore as it requires huge capital to do! The US just wants to help the country.

Venezuela contribution to worldds output is very small, hence no much impact on prices of crude oil will be felt

Expect no shocks in the iimmediate future. At least not in the next 2 years. Crude production is also regulated so its not falling below a certain benchmark.

budaatum:
On the flip side, insurgents might blow up Venezuela's oil so it can't be exported, and that would explode oil prices. But I see FreeStuffsNG has already explained this scenario so I shan't belabour the point.

Just think what we would do if it were Nigeria and some foreign country deposes our president and tries to steal our oil. I'm very certain we'd blow our oil up so it can't be stolen.

you will blow up your oil so it cant be stolen as in how?
you guys should take it easy in being emotional.

Thought they said venezuelan oil contains too much sulphur and that makes it more expensive to refine.

magoo10:
you will blow up your oil so it cant be stolen as in how?
you guys should take it easy in being emotional.

I, Nigerian, "should take it easy in being emotional" about foreign thief breaking my house on my fatherland and kidnap my peoples and sell the asset for their own benefit and profit?

Magoo10, I am not like you. Add severe anger and a dose of I no go gre, and that's buda.

If thief enter my own house and steal my asset to sell in the market, I will terr⁰r¹se them back in return, and if I'm not strong enough to terr⁰r¹se them, I will definitely dig my road and puff my factory and put every other possible obstacle I can muster in their way to reduce their profiteering and get the f off my land.

It's a strategy that's been used after all, so why not Venezuela?

After Venezuela the US will come to steal Nigeria's oil. Don't believe that Trump want to help Nigerians.
The United States is planning a military operation to seize Nigeria's oil

Aww

chicfarmer:
You're not entirely correct. Us is still one of the biggest buyers of international crude. If they have access to cheap crude in Venezuela, this will affect global demand. A weakening of global oil demand will bring prices down.

So for Nigeria, while falling crude prices will put pressure on government revenue, on the flip side, prices of petroleum products will also fall leading to some relief for the common man.

Overall let's continue to observe as things unfold.

We both know this will not happen.

budaatum:
I, Nigerian, "should take it easy in being emotional" about foreign thief breaking my house on my fatherland and kidnap my peoples and sell the asset for their own benefit and profit?

Magoo10, I am not like you. Add severe anger and a dose of I no go gre, and that's buda.

If thief enter my own house and steal my asset to sell in the market, I will terr⁰r¹se them back in return, and if I'm not strong enough to terr⁰r¹se them, I will definitely dig my road and puff my factory and put every other possible obstacle I can muster in their way to reduce their profiteering and get the f off my land.

It's a strategy that's been used after all, so why not Venezuela?

shey you know something at all?
going by your statement of they steal oil you will blow up oil.
what it means is if thief enter your house you will set it on fire.
I still repeat stop being emotional and deal with Tinubu that has stolen your future first

motymop:
Now that Donald Trump is in control of Venezuela’s oil, he is likely to increase oil production and flood the global market, which could push prices lower. If that happens, oil could trade below Nigeria’s budget benchmark.

In the coming months, as the oil market becomes more supplied, Nigeria’s oil revenue may decline. This makes the recent tax reforms and additional levies introduced by the Nigerian government look timely, as they are aimed at boosting non-oil revenue.

Going forward, we could still see higher inflation, increased cost of living, and currency pressures, but the final outcome will depend largely on how well the government manages the situation.

The oil price has long since crashed. Since 2014.

A good sign of the crash is our increased borrowing since 2015. Because oil is our main income earner and has been since the seventies, all our other income earners have dried up or weakened. So, now that the price has crashed, we borrow.

The sad thing is that we were in the same situation before. Oil was high in the 1970s, then it crashed in the eighties. And up went our borrowing because we was too scared to do the hard work of actually building an economy that was sustainable

Which is what is happening now under apc since 2015. Borrowing to escape reality

Horus:
After Venezuela the US will come to steal Nigeria's oil. Don't believe that Trump want to help Nigerians.
The United States is planning a military operation to seize Nigeria's oil

Lol. US dependency on Nigerian oil has fallen drastically, plus American companies operate freely here. Not like Venezuela where only Chevron was operating

And tinubu is a American plant,like all his predecessors. Yes , most Nigerian leaders are pro USA. Except probably abacha and Muritala Muhammed . Tinubu especially.

magoo10:
what it means is if thief enter your house you will set it on fire.

If that's how irrational you think I mean then so it is.

As for me, if thief decide to enter my house and settle in my house, first I will cut the water to my house and cut the electric to my house and put juju on my house and the thief. Then I will put dead cow in my house and block the entrance to my house and dig up the road to my house and stone the windows of my house so as to diminish the thief enjoying my house before burning it if thief doesn't get the hint. And after that I still might not get my house back and might need consider further obstacular measures so thief severely don't enjoy occupying my land.

I perfectly understand if you differ as we are not all the same.

nairalanda1:
Lol. US dependency on Nigerian oil has fallen drastically,

How drastically?

The chg and % is interesting.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIMUSNI1&f=M

https://tradingeconomics.com/united-states/imports/nigeria/crude-oil-petroleum-bituminous-minerals

budaatum:
If that's how irrational you think I mean then so it is.

As for me, if thief decide to enter my house and settle in my house, first I will cut the water to my house and cut the electric to my house and put juju on my house and the thief. Then I will put dead cow in my house and block the entrance to my house and dig up the road to my house and stone the windows of my house so as to diminish the thief enjoying my house before burning it if thief doesn't get the hint. And after that I still might not get my house back and might need consider further obstacular measures so thief severely don't enjoy occupying my land.

I perfectly understand if you differ as we are not all the same.

so you are serious you are looking for thief when you are defending one with your life already.

budaatum:
I, Nigerian, "should take it easy in being emotional" about foreign thief breaking my house on my fatherland and kidnap my peoples and sell the asset for their own benefit and profit?

Magoo10, I am not like you. Add severe anger and a dose of I no go gre, and that's buda.

If thief enter my own house and steal my asset to sell in the market, I will terr⁰r¹se them back in return, and if I'm not strong enough to terr⁰r¹se them, I will definitely dig my road and puff my factory and put every other possible obstacle I can muster in their way to reduce their profiteering and get the f off my land.

It's a strategy that's been used after all, so why not Venezuela?

The problem here being that Venezuelans didn't line up to die for leaders who destroyed their country. They're celebrating while you're crying on their behalf.

When pressure came for the US, they didn't see America as the enemy, they already lost faith in their own leadership. In fact, they celebrated his removal. You don't get people to resist foreign pressure when you've impoverished them, stolen their future, and driven millions into exile and refugee status abroad.

America acts in it's own interest, it always will. But it's not America's job to govern another country well. That responsibility belongs to your own leaders.

Leaders in countries like Singapore and South Korea built strong institutions while their counterparts in Nigeria chose to enrich themselves and their families and cronies. Don't expect loyalty where you haven't given one.

You lost the argument here. You're free to give your loyalty to those who impoverish you, the fact remains that it doesn't work like that for the majority. You're wasting your time trying to convince anyone.

motymop:
Now that Donald Trump is in control of Venezuela’s oil, he is likely to increase oil production and flood the global market, which could push prices lower. If that happens, oil could trade below Nigeria’s budget benchmark.

In the coming months, as the oil market becomes more supplied, Nigeria’s oil revenue may decline. This makes the recent tax reforms and additional levies introduced by the Nigerian government look timely, as they are aimed at boosting non-oil revenue.

Going forward, we could still see higher inflation, increased cost of living, and currency pressures, but the final outcome will depend largely on how well the government manages the situation.

But PMS will remain above 900per litre

nairalanda1:
Lol. US dependency on Nigerian oil has fallen drastically, plus American companies operate freely here. Not like Venezuela where only Chevron was operating

And tinubu is a American plant,like all his predecessors. Yes , most Nigerian leaders are pro USA. Except probably abacha and Muritala Muhammed . Tinubu especially.

Yes, Tinubu is a CIA "agent" so the US can remove him from power when they no longer need him. As the head of the executive branch,
the US President has the authority to remove any CIA agent at any time for any reason

Horus:
Yes, Tinubu is a CIA "agent" so the US can remove him from power when they no longer need him. As the head of the executive branch,
the US President has the authority to remove any CIA agent at any time for any reason

And right now they need him.

Your argument is based on the fact that tinubu might have fallen out with his USA masters..

Removing a preseident in a country where most of the people are similar culturally and religion wise is not the same as doing the same in the tinderbox called Nigeria. That's why USA didn't bother with Abacha back then. They didn't like him, but then..

budaatum:
On the flip side, insurgents might blow up Venezuela's oil so it can't be exported, and that would explode oil prices. But I see FreeStuffsNG has already explained this scenario so I shan't belabour the point.

Just think what we would do if it were Nigeria and some foreign country deposes our president and tries to steal our oil. I'm very certain we'd blow our oil up so it can't be stolen.

Don't even envisage that militants or whoever would blow up the oil systems. Those guys are only loyal to their pockets, and that one na small mata.
If it ever gets to that, your soldiers would align without much resistance. No be people wey dey rig election and sabotage the country normally for anyone who has the pocket and power?
Just pray it never gets to that.