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Nairaland Forum / Nairaland / General / Business / Oil Price Inches Towards $70, 44% Above Benchmark (9553 Views)
CBN Raises Benchmark MPR By 200 Basis Points To 24.75% / Naira Inches Towards 1000 Naira To A Dollar / Nigeria’s Inflation Rises To 11.44% In December 2018—NBS (2) (3) (4)
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Emeritus001(m): 7:35am On Dec 28, 2017 |
I pray this clueless government used this development judiciously....I hope this last longer because the era of rising and stable oil price is long over due. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by coolestchris(m): 7:35am On Dec 28, 2017 |
ok nice
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Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 7:35am On Dec 28, 2017 |
Bede2u: Oil was above $100 under GEJ from 2011-14. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by EvilMetahuman: 7:45am On Dec 28, 2017 |
9jakohai:the one they deregulated for over 2 years now, what did they do with it? we didnt trust jonthan with deregulation, we didnt allow him and voted him out. buhari just proved us right all along that the so called deregulation is a scam. we are back to where we started from. and you are here still talking about stupid deregulation that would amount to nothing. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by pointstores(m): 7:45am On Dec 28, 2017 |
Good one but it doesn't affect nigerians positively 1 Like |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Rigel95(m): 7:46am On Dec 28, 2017 |
Despite all these am sure they will still blame GEJ when they eventually fail. 1 Like |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by CallmeLucy(m): 7:54am On Dec 28, 2017 |
What does this mean to FX? |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 7:57am On Dec 28, 2017 |
EvilMetahuman: 1.GSM was deregulated from the word go....no price controls, nothing....and we went from N7000 Sim to N500 sim...because the GSM companies were allowed to make their profits freely....which freed them to pour in more money freely.... 2.Subsidy itself costs a lot of money tpo sustain. 3.Oil subsidy is not sustainable....it does not let marketers and oil companies make enough profit to break even. That is why many workers in fuel stations across Nigeria get poor salaries.,....and why we don't have more investment in things like refineries as well....and why saboteurs divert fuel to other countries...which can be sold for a profit. See the pictogram below...made when pms was at N87....and you will get it better. 3 Likes 3 Shares
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Re: Oil Price Inches Towards $70, 44% Above Benchmark by spafu(m): 7:59am On Dec 28, 2017 |
Woe |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by macaphan007(m): 8:01am On Dec 28, 2017 |
landing cost for PMS will increase, expect increase in fuel price Nigerians. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Saintp(m): 8:03am On Dec 28, 2017 |
whether rise or fall, it is still useless to Nigeria. In fact, I see fuel rising to N300/ltr with this rise. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by spafu(m): 8:03am On Dec 28, 2017 |
EvilMetahuman:But you trusted Buhari with deregulation? You didn't trust a man that was more competent but you trusted one who didn't even have the capacity. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by macaphan007(m): 8:09am On Dec 28, 2017 |
9jakohai:You are right,2012 would have been the best time to remove subsidy but because of lack of information and individual education by Nigerians on matters like this we are faced with the ugly scenario again,full deregulation is the only solution,the Senate should pass the PIB and allow more investment in the upstream sector.since Buhari once said subsidy is a scam,well Nigerians should be ready to pay more for PMS cos the landing cost will increase.if we allowed Jonathan then and the PIB was passed things would have been fair by now and Nigerians would have adjusted to the price.....it is well. 1 Like |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Bede2u(m): 8:22am On Dec 28, 2017 |
9jakohai:
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Re: Oil Price Inches Towards $70, 44% Above Benchmark by EvilMetahuman: 8:23am On Dec 28, 2017 |
spafu:read the post again. we gave buhari the benefit of he doubt, not trusted. And he has disappointed us. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by EvilMetahuman: 8:29am On Dec 28, 2017 |
9jakohai:wrong! There has always been a base price for the telecom operators. they cant go lower or above a certain amount based on current situation. telecom operators cannot wake up one day and increase the price of data or calls without the support of ncc. 2.Subsidy itself costs a lot of money tpo sustain.That's what they told us. subsidy corruption is what makes it expensive and unsustainable which all politicians benefit from including buhari. See the pictogram below...made when pms was at N87....and you will get it better.this proves nothing. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 8:42am On Dec 28, 2017 |
1 Like
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Re: Oil Price Inches Towards $70, 44% Above Benchmark by Tecno66: 9:02am On Dec 28, 2017 |
When crude price rises, Nigeria gains but the people suffer because the price of pms and other petroleum products increase because the cost of the raw material has increased. marryjesus: |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by mokset123: 9:03am On Dec 28, 2017 |
IMASTEX:It will cost something that's why things have continued the way they are, because we aren't ready to tell ourselves the hard truth and do the needful, instead we look for cheaper alternatives that would take us no where 1 Like |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by GavelSlam: 9:22am On Dec 28, 2017 |
9jakohai: You've been peddling these figures for a while without any references to back them up. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by GavelSlam: 9:23am On Dec 28, 2017 |
Bede2u: That was the average price over 4 years. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by GavelSlam: 9:29am On Dec 28, 2017 |
macaphan007: No it wouldn't. The best time to remove subsidy would be when you have local refining capacity viz private refineries competing with each other as against cost of import. Should that be fixed, there would be an initial jump in price but eventually a flat line as it balances out. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 9:40am On Dec 28, 2017 |
GavelSlam: I got the dollar figures from a Bloomberg report back in 2014.... The same report put it at $77 for Saudi Arabia, $99 for Russia. Also, earlier this year, Fitch put it at $139 per barrel for Nigeria...so even i am being optimistic Nigeria needs $139 oil price-vanguard |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by macaphan007(m): 9:43am On Dec 28, 2017 |
GavelSlam:That's why I said the Senate should pass the PIB,my Boss has a client that has the license to build a 120bpd refinery and two modular refineries but cos of too many constraints its difficult for her to get foreign investors to partner her cos even her bank can provide a financial guarantee,13 companies have license to build refineries in Nigeria why is Dangote the only one the Govt is assisting?I agree with you but the PIB has to be passed to provide a level playing ground for all investors and the local communities where the raw material is gotten from. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 9:44am On Dec 28, 2017 |
GavelSlam: Here is the Bloomberg report from April re $139 Kuwait’s in the best position of major oil exporting nations in the Middle East, Africa and parts of Europe to have a balanced government budget this year with oil forecast to average $52.50 a barrel, according to Fitch Ratings Ltd. Nigeria is worst off, needing an oil price of $139 a barrel to balance its budget, Fitch said in a April 5 report on 14 major oil exporting nations in the Middle East, Africa and emerging Europe. Even after cuts in government subsidies and currency devaluations, 11 of them won’t have balanced government budgets this year, including Saudi Arabia, it said. “Fiscal reforms and exchange rate adjustments are generally supporting improved fiscal positions compared to 2015, but have not prevented erosion of sovereign creditworthiness,” Fitch said. Only Kuwait, Qatar and the Republic of Congo have estimated break-evens that are below Fitch’s oil price forecast for this year. Kuwait at $45 a barrel traditionally has a low break-even because of its high per-capita hydrocarbon production and more recently its “large estimated investment income” from its sovereign wealth fund, Fitch said. Brent crude, a global benchmark, has averaged about $55 a barrel this year. The rating agency said it “substantially” raised the fiscal break-even prices for Nigeria, Angola and Gabon from 2015 levels because of rising government spending. Fitch’s forecast 2017 break-even oil prices, per barrel: Nigeria at $139 Bahrain at $84 Angola at $82 Oman at $75 Saudi Arabia at $74 Russia at $72 Kazakhstan at $71 Gabon at $66 Azerbaijan at $66 Iraq at $61 Abu Dhabi, United Arab Emirates, at $60 Republic of Congo at $52 Qatar at $51 Kuwait at $45 Sauce 4 Likes 3 Shares |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by GavelSlam: 9:44am On Dec 28, 2017 |
9jakohai: Please provide the Bloomberg and Fitch links. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 9:45am On Dec 28, 2017 |
GavelSlam: Have done that earlier.....see my second mention. The bloomberg report makes for some very interesting reading. Just in case you missed it....The Bloomberg report 1 Like |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by GavelSlam: 9:54am On Dec 28, 2017 |
macaphan007: Government did not support Dangote before he put his money where his mouth is. After aqcuisition of land, collaboration with banks and producers, only then government can assist, by providing tax and tarrif breaks in addition to discounts on forex. Until these parameters are met government would only withold the limited funds crying for various alternative uses. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by GavelSlam: 9:55am On Dec 28, 2017 |
9jakohai: You do know this has to do with budget balancing and not cost of production. |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 10:00am On Dec 28, 2017 |
GavelSlam: But of course....which is what the original post of mine you responded to first was referring to. When oil prices go up, Nigerians somehow expect increased cash to fund everything...when the cold reality is that the cash is not enough....and the looting makes it more painful. We need to get off oil dependency. And...this is why, harking somewhat to the 'cost of production', we need to also realise that we cannot fund subsidies adequately. It is an argument i don't like making...but it is the cold fact. We are not a rich nation. Rich nations have more than one revenue source, and it isn't hawking raw materials 7 Likes 3 Shares |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by GavelSlam: 10:12am On Dec 28, 2017 |
9jakohai: I've always maintained we are not a rich nation. Heck Apple alone makes more money than us. For me, it is imperative we get power to work. Should that be achieved, we might experience a slight increase in production of finished goods in the short term and a whole swathe of manufacturing entrants in the medium to long term. Hopefully we might also get the younger ones to embrace info tech. 1 Like |
Re: Oil Price Inches Towards $70, 44% Above Benchmark by Nobody: 10:13am On Dec 28, 2017 |
Try and be useful to your immediate family... ...leave Nigerians to decide on his performance Millz404: 1 Like |
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