The days ahead may just be harder than
envisaged as the International Monetary Fund
(IMF), Thursday, said crude oil prices may slump
to as low as $20 per barrel in 2016.
Following the release of the “IMF Executive
Board Concludes 2015 Article IV Consultation
with Iran” report, the body highlighted that the
price of crude oil could drop between $5 and $15
in 2016. Following the release of the “IMF
Executive Board Concludes 2015 Article IV
Consultation with Iran” report, the body
highlighted that the price of crude oil could drop
between $5 and $15 in 2016.
According to IMF, the dwindling oil prices would
not have overtly negative effect on Iran, whose
gross domestic product (GDP) is expected to
rise four to 5.5 percent by 2017.
“Prospects for 2016/17 are brighter, owing to the
prospective lifting of economic sanctions. Higher
oil production, lower costs for trade and financial
transactions, and restored access to foreign
assets, are expected to lift real GDP to about 4–
5.5 percent next year,” IMF said.
The same cannot be said for Nigeria, whose
2016 budget is benchmarked at an oil price of
$38 per barrel for the 2016 fiscal year.
With Nigeria expected to produce 2.2 million
barrels of crude oil per day in 2016 and sell at
$38 per barrel, the country expects to generate
$83.6 million per day in 2016 – $30.514 billion in
the year 2016.
Going by IMF’s predictions at $20, Nigeria would
generate $44 million per day in 2016, amounting
to $16.060 billion in the year.
This would mean that Nigeria would get at least
47.4 percent less revenue from oil than what is
already projected, consequently adding more
pressure to the nation’s need to go borrowing in
2016.
According to President Muhammadu Buhari, oil
related revenues are expected to contribute
N820 billion to the economy, while the budget
deficit which stands at N2.22 trillion would be
funded by foreign and domestic loans.
If the N820 billion expected from oil revenues is
cut by 47.4 percent – the IMF projected decline
in oil prices – the nation’s budgetary deficit
would move N388.68 billion to N2.59 trillion.
As at November, Iran, with the world’s fourth
largest oil reserves, had 36 million barrels of oil
stored in offshore tankers for sale in 2016 – sure
to drive oversupply.
This is against the Organisation of Petroleum
Exporting Countries (OPEC) projections that the
global crude oil prices at seven-year low will not
continue to fall, as it could swing upwards soon.
The Secretary-General, OPEC, Abdullah al-Badri,
made this disclosure at the first OPEC-India
Energy dialogue in New Delhi.
It will be recalled that oil prices fell by about
two-thirds since mid-2014, with Brent crude on
Monday flirting with its lowest level since 2004
at just above $36 a barrel.
According to him, “I’ve been in the oil business
all my life. I saw six cycles – I saw very high
price, I saw low price, and this is one of them.
This will not continue.”


Source:
http://www.thetrentonline.com/bad-bad-news-oil-prices-to-drop-to-between-5-and-15-in-2016-imf/

How did we get here. Were are the raining day fund. Jonathan will never no peace with the way he destroyed this country.

And some dullard will still want buhary to perform magic

Where ll Buhari get fund to finance his budget? And to tjoes ppl blaming Jonathan God ll forgive u. Abacha, Obj looted Nigeria fund when oil price was high in international market.

Sall:
And some dullard will still want buhary to perform magic

Tell Buhari to entrench True Federalism if he really wants to perform magic

Tell Buhari to pass a bill to the National Assembly that will create a law to empower states to keep 25% of revenue generated from mineral and non mineral wealth gotten within their boundaries

I love this news.

Now is the time to diversify, most definitely and for the Federal government to put on it's thinking cap on how to come up with short, medium and long term measures for the survival of the economy.

For those always shouting our oil, they may end up drinking the oil.

Ijaya123:
I love this news.

Markets | Thu Dec 24, 2015 2:39pm EST
Oil continues recovery, dollar slips in quiet trade


Oil prices gained for a fourth straight day on Thursday, while equity markets were quiet headed into the Christmas holiday

http://www.reuters.com/article/us-global-markets-idUSKBN0U701620151224

Unfortunately for disgruntled people and enemies of Nigeria, Oil is bouncing back already..


Good is always over evil anytime any day..

Stock Market Today - As Oil Prices Rebound, European Shares Open Higher

NEW YORK (TheStreet) -- European shares opened in the green on a rebound of oil prices, mirroring upbeat sentiment in Asia in holiday-thinned trading. Oil rose for the fourth consecutive day, due to a fall in U.S. inventories and the lifting of export restrictions for U.S.-produced crude. The euro was up 0.3% vs. the dollar, to $1.0943 on Thursday morning.


http://www.thestreet.com/story/13407008/1/stock-market-today-as-oil-prices-rebound-european-shares-open-higher.html

You evil wishers need to go back to the drawing board to up your evil wishing game...


God bless Nigerian..

Ijaya123:
I love this news.

Now is the time to diversify, most definitely and for the Federal government to put on it's thinking cap on how to come up with short, medium and long term measures for the survival of the economy.

For those always shouting our oil, they may end up drinking the oil.

They will drink the oil with kulikuli.

Sall:
How did we get here. Were are the raining day fund. Jonathan will never no peace with the way he destroyed this country.

if not that I hate to insult people, I would have said u ar a fool for blaming Goodluck instead of all our past leaders. Must nigeria depend on oil to survive. How I wish God will answer my prayer for oil to be sold at one dollar per barrel

merry02:
Where ll Buhari get fund to finance his budget? And to tjoes ppl blaming Jonathan God ll forgive u. Abacha, Obj looted Nigeria fund when oil price was high in international market.

You're an imb*ecile.

Sall:
How did we get here. Were are the raining day fund. Jonathan will never no peace with the way he destroyed this country.

Your existence is a mistake.

This new has made my day.
Alias we shall stop living the lie called one Nigeria.

EternalTruths:


Tell Buhari to pass a bill to the National Assembly that will create a law to empower states to keep 25% of revenue generated from mineral and non mineral wealth gotten within their boundaries

Good one.

But increase the 25% to 75%. Or even 80%.

And push almost all functions to the states.

True federalism is the way out.

Sall:
How did we get here. Were are the raining day fund. Jonathan will never no peace with the way he destroyed this country.

my friend shut ur dirty mouth if u don't know what to say...is gej the only president that ruled nija since 1999?

The most useless country is Nigeria. No jokes.

Ijaya123:
I love this news.

Now is the time to diversify, most definitely and for the Federal government to put on it's thinking cap on how to come up with short, medium and long term measures for the survival of the economy.

For those always shouting our oil, they may end up drinking the oil.

The best time to diversify is when the oil price is high as there will be available funds. Nigeria suffered greatly for more than 18years of low oil prices from 1982 to early 2000s. The failure of the Gowon Government to diversify lead to misuse of the 70s oil boom. Obasanjo tied with his operation feed the nation which was not continued by Shagari regime. Buhari has options but they will come with lots of sacrifices on our part as Nigerians.

Wallahi, Gaskiya
http://www.vanguardngr.com/2015/04/falling-oil-prices-threaten-my-agenda-buhari/

We will be vindicated in 2016. The hunger and suffering in 2016 will be of biblical proportions. Nigerians get ready to SUFFFFER

Ijaya123:
I love this news.

Now is the time to diversify, most definitely and for the Federal government to put on it's thinking cap on how to come up with short, medium and long term measures for the survival of the economy.

For those always shouting our oil, they may end up drinking the oil.

Shallow minds, when the government is broke they increase taxes, happy now?