₦airaland Forum

By Barani Krishnan

NEW YORK (Reuters) - Oil hit its highest level for the year on Friday with Brent crude rising above $60 a barrel, as eurozone economic growth exceeded expectations and market bulls priced in another drop in the U.S. oil rig count.

Bets that falling exploration budgets of energy firms' will mop up some of the excess oil in the market also fueled gains.

Many analysts and traders believe there is a global oversupply of nearly two million barrels per day in crude oil. They say little has changed fundamentally to explain the rally of the past two weeks.

Even so, oil prices have marched higher. Brent rose over 3 percent in Friday's session, about 6 percent on the week and nearly 16 percent on the month. Gains heightened after its front-month contract switched on Thursday at a premium.

Brent had collapsed from a high above $115 a barrel in June to a near six-year low under $46 in late January, as fears of a global oil glut rattled the market.

"Naturally, when prices fall that much within that short a time, you're likely to have a severe rebound as well, though speculators are possibly adding more fuel on the way up now," said Phil Flynn, analyst at the Price Futures Group in Chicago.

Brent was up $2.22 at $61.50 a barrel at 10:48 a.m. ET, having reached $61.77 earlier.

U.S. crude CLc1 rose $1.94 to $53.15, after a session high at $53.32.

Some traders attributed Friday's strength in oil to the unexpected acceleration in euro zone economic growth in the final quarter of 2014. The bloc's largest member, Germany, particularly grew at more than twice the expected rate.

Others said the market was possibly pricing in another weekly drop in the U.S. oil rig count, ahead of industry data due later in the day. The rig count fell last week to a three-year low.

Still, the rally in oil has come amid record-high U.S. crude inventories.

Walter Zimmerman, chief technical analyst at United-ICAP in Jersey City, New Jersey, said unless U.S. crude rose above $58.72, its rebound from the January low of $43.58 "is doomed to be a minor bear market correction in a continuing long term down trend."

(Additional reporting by A; ex Lawler and Jack Stubbs in London and Adam Rose in Beijing; Editing by Dale Hudson, David Evans and Tom Brown)

http://mobile.reuters.com/article/topNews/idUSKBN0LH08120150213?irpc=932

Let corruption not take the benefits of this away!

Those who have proven to squander the nation in time of surplus should not be reelected to embezzle it the more.

We need Change to a focused, meticulous, accountable, transparent leadership that will spend more on Capital Projects, diversify the economy, curtail corruption, strengthen Civil Service and build stronger institutions of Government.

Vote APC. Sai Buhari/Osinbajo

this just shows that even God is in support of our transformation and the prudency of NOI and so the upward trend is a confirmation of his promise; that there will always be cash whether APC likes it or not.

Only a blind man that is not capable of visible signs.

#GEJTillThereIsABetterIn2019.

egift:
Those who have proven to squander the nation in time of surplus should not be reelected to embezzle it the more.

We need Change to a focused, meticulous, accountable, transparent leadership that will spend more on Capital Projects, diversify the economy, curtail corruption, strengthen Civil Service and build stronger institutions of Government.

Vote APC. Sai Buhari/Osinbajo

Should a man who left our rails and other capital projects to ROT like this be given another chance to do more DAMAGE?



www.nairaland.com/attachments/2045441_image_jpeg9f360c5ab7736510df54c882e9dbf188





www.nairaland.com/attachments/2087214_buharimetro_jpeg0139273fe26a1325be266ba40c34a836

I am sure this will help reduce the pressure on our naira for now, while we wait for the price to stabilize at between $70-$80 by June.

dlox147:
I am sure this will help reduce the pressure on our naira for now, while we wait for the price to stabilize at between $70-$80 by June.

Sure bro! d pressure on d naira is too much
So tey if na person e for don die since

The prophets of doom that are wishing the economy to crash will be shamed.

The global oil price will significantly appreciate soon to facilitate the impressive economic fortunes being midwifed by the present administration.

No place in Nigeria for voodoo and phantom economists and their political collaborators...

PS: This is thread is destined for the front page so MODs should do the needful.

NOI and her team of financial experts will shame the prophets of doom and those wishing our economy evil so they can see campaign propaganda to use.

Shame to apc.

Op sha

anonimi:
Should a man who left our rails and other capital projects to ROT like this be given another chance to do more DAMAGE?

You forgot to add is that Jonathan's rail projects are executed on Loans. What happen to all the oil windfall he presided over - Squandered and Stolen.

China firm signs $12 bn deal to build Nigerian railway
http://www.vanguardngr.com/2014/11/china-firm-signs-12-bn-deal-build-nigerian-railway/

egift:
You forgot to add is that Jonathan's rail projects are executed on Loans. What happen to all the oil windfall he presided over - Squandered and Stolen.

China firm signs $12 bn deal to build Nigerian railway
http://www.vanguardngr.com/2014/11/china-firm-signs-12-bn-deal-build-nigerian-railway/

You know nothing egift

Nonsense.

nigerian leaders are too useless to build a responsible country.

The core problem is one nigeria.

chamboy:
Op sha

and what is that suppose to mean?

egift:
You forgot to add is that Jonathan's rail projects are executed on Loans. What happen to all the oil windfall he presided over - Squandered and Stolen.

China firm signs $12 bn deal to build Nigerian railway
http://www.vanguardngr.com/2014/11/china-firm-signs-12-bn-deal-build-nigerian-railway/

You are NOT smart at all just like most Buhari followers, anyway.

The Vanguard story is from November 2014 i.e. just three months ago. Meanwhile the Jonathan/Sambo team has made impressive steady progress before the SIGNING on that date, not so


www.nairaland.com/attachments/2106456_gejmasstransit_jpeg06b55da820f2af18e1bb27b70dfeb165


Unlike the useless APCheat governor in Lagos state who has already SPENT N160 billion World Bank loan yet has not delivered any light rail.

Lagos: How We Spent N160bn World Bank Loan on Light Rail Project

The Lagos State Government yesterday justified the N160 billion it borrowed from the World Bank, noting that the fund was channelled to finance its light rail (blue line) project.

However, the state government expressed disappointment at the progress of the project, which it said, was not executed as smoothly as possible, but was optimistic of its completion.

The state Governor, Mr. Babatunde Fashola, said this shortly after inspecting the light rail terminus at the Orile-Iganmu part of the state alongside some members of the state executive council.

More from: http://www.thisdaylive.com/articles/lagos-how-we-spent-n160bn-world-bank-loan-on-light-rail-project/188736/

dlox147:
and what is that suppose to mean?

check oilprice.com

Yes! we need this...businesses has been on hold. hope this our naira picks value faster.

Good news. We hope it appreciates more through next week.

Thank God

But

The government should never continue with the useless practice of defending naira with our foreign reserve at all cost.

Government should use some part of the foreign reserve to

1) diversify the economy

2) eliminate our import economy

3) increase our export economy



The budget should be pegged at $40 and the extra used to achieve the lists above and enlarge our foreign reserve.


Naira should be left at N200 to $1 so as to make imported products very expensive in order to discourage importation , encourage local production and increase exportation.

by now tinubu and buhari will be saying that they must win in order to have plenty oil well...gej till 2019..hit lik if you are celebrating valentine and share it you are not celebrating it

egift:
What happen to all the oil windfall he presided over - Squandered and Stolen.

No.
Shared with the 36 state governors and 774 LGA chairmen who did NOTHING but steal while telling their daft & dumb fellow citizens to focus only & solely on the president.
Not so

FG, States, LGs Share N568.4 Billion for Oct

Also, $1billion was proposed for distribution to complement shortfall in expected revenue." The $1billion is a compromise by the FG over its words in September not to augment shortfalls anymore.

Responding to the presentation, the chairman of the States Commissioners of Finance and Ebonyi State Commissioner of Finance, Mr Timothy Odaah, lamented that the statutory allocation was getting smaller and smaller. "It appears this is the worst in terms of returns. This is the least in allocations as far as this year is concerned. We are mourning the dearth of funds and this is a wakeup call for states and local governments to buoy up their internally generated revenue."

While appreciating the "magnanimity" of President Goodluck Jonathan to approve the $1billion from the excess crude account and to be shared among the federal, state and local governments, Odaah expressed disappointment with the returns made by the NNPC.

He said that [size=14pt]the states had requested for $2bn[/size] to complement for the shortfall in revenue but got only $1billion. In September, Odaah and fellow commissioners had walked out of the Accountant General of the Federation (AGF) when the federal government said that the framework of the 2013 budget was no longer realistic and it won't augment shortfall in revenue. Odaah raised issues with the statutory allocations of previous months.

More from: http://allafrica.com/stories/201311150323.html

chamboy:
check oilprice.com

that's from oilprice.com and it supports my initial post. Thanks

And very conveniently Putin and the west are holding peace talks at the moment.

.... prices would rice even higher within the next two months.

Thank God oh @least there's still hope

dlox147:
I am sure this will help reduce the pressure on our naira for now, while we wait for the price to stabilize at between $70-$80 by June.

Some CBN policies are contributing to the pressure on naira. They created artificial scarcity of dollar, and You know what to expect when a commodity Is scarce.

You Can't discourage people from buying dollar by making It scarce. It Is not a luxury commodity. It Is bought by businessmen who Will go for it at any cost and have the extras added to the Price of the commodity the sell.

mployer:
Some CBN policies are contributing to the pressure on naira. They created artificial scarcity of dollar, and You know what to expect when a commodity Is scarce.

You Can't discourage people from buying dollar by making It scarce. It Is not a luxury commodity. It Is bought by businessmen who Will go for it at any cost and have the extras added to the Price of the commodity the sell.

I agree with you. In trying to protect the naira he underestimated the resilience of a typical Nigerian businessman and the purchasing power of our middle class. But at the long run this whole situation will definitely help create a more industrialized Nigeria as more importers will settle for production.

anonimi:
No.
Shared with the 36 state governors and 774 LGA chairmen who did NOTHING but steal while telling their daft & dumb fellow citizens to focus only & solely on the president.
Not so

I like this...people won't still stop accusing the #1 citizen of mismanagement even when it's know that their LGA and state leaders are the vehicle of the so called mismanagement and embezzlement.

It is well

egift:
Those who have proven to squander the nation in time of surplus should not be reelected to embezzle it the more.

We need Change to a focused, meticulous, accountable, transparent leadership that will spend more on Capital Projects, diversify the economy, curtail corruption, strengthen Civil Service and build stronger institutions of Government.

Vote APC. Sai Buhari/Osinbajo

Start planting cocoa and stop putting your hopes on other people's oil money.

anonimi:
No.
Shared with the 36 state governors and 774 LGA chairmen who did NOTHING but steal while telling their daft & dumb fellow citizens to focus only & solely on the president.
Not so

Don't mind the fools. Their governors squander their illegal share of our oil wealth and then tell them to focus on Jonathan.

These people no get sense at all.

[size=18pt]The many Lamentations of oyel money by Areberascal [/size]

Aregbesola Accusses Jonathan of Squandering U.S.$35 Billion Oil Money
http://allafrica.com/stories/201502010218.html

Nigeria lost 1.2 trillion naira to oil theft in 2014-  Aregbesola 
http://www.thisdaylive.com/articles/nigeria-lost-n1-2trn-to-crude-oil-theft-in-2014-alleges-aregbesola/198795/

Jonathan responsible for oil theft-Aregbesola
https://www.facebook.com/GovernorRaufAregbesola/posts/791547530882282

Nigeria loses 2.2 trillion naira to oil theft -Aregbesola
https://www.facebook.com/GovernorRaufAregbesola/posts/798085810228454

$14bn lost to oil theft annually -Aregbesola
http://leadership.ng/news/400862/14bn-lost-oil-theft-yearly-aregbesola

Till Today, Jonatan can not account for $14.6bn dollars-Aregbesola
http://www.nigerianeye.com/2015/01/till-today-jonathan-cant-account-for.html

40% reduction in Osun’s federal allocation unjustifiable – Aregbesola
http://www.punchng.com/news/40-reduction-in-osuns-federal-allocation-unjustifiable-aregbesola/

Thank God again.