Stella Dimoko Korkus.com: Nigerian Crude Oil Now Trading At $11 USD Dollars Per Barrel

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Tuesday, April 21, 2020

Nigerian Crude Oil Now Trading At $11 USD Dollars Per Barrel

Nigerian crude oil is now trading at $11 USD dollars per barrel whilst it costs almost $30 to produce that same barrel...





On Monday, US oil prices also turned negative for the first time on record after oil producers ran out of space to store the oversupply of crude left by the coronavirus crisis, triggering an historic market collapse which left oil traders reeling.


The price of US crude oil crashed from $18 a barrel to -$38 in a matter of hours, as rising stockpiles of crude threatened to overwhelm storage facilities and forced oil producers to pay buyers to take the barrels they could not store, according to The Guardian.


The market crash underlined the impact of the coronavirus outbreak on oil demand as the global economy slumps.


The huge drop in US gasoline consumption in recent weeks due to stay-at-home orders during the COVID-19 outbreak pushed down both oil and gasoline prices, since there is excess supply of both. And the space needed to store that excess supply is running short, which is part of what led to the negative oil price on Monday.

34 comments:

  1. Replies
    1. Buhari asked for mandate with a promise to diversify the economy, build refineries and improve agriculture, among other things. Fast forward to after election , Buhari became president + minister for petroleum, spent money to look for crude oil in the desert north, could not even settle the rift between herders and farmers amicably without ethnic and religious sentiments.
      Now, it looks like we never moved at all, and even if we moved, we went steps backward.
      What do I suggest? A live debate/interaction with the president to assess his mental faculties. If he pass he continues, if he fails, we look for a leader!

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    2. But it was obvious to everyone that Buhari didn't have the mental and physical capacity to rule Nigeria. We only hope that we learned. Even if you zone an office to a section of the country, that zone should be supported to produce their very bests. The north has people like Tambuwa, etc but they all ran after Sai Baba.

      Delete
  2. Buhari abi presidency come and reduce fuel prices from 125 to 25 naira.

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  3. Na so we see am o. We had better look away from oil and concentrate on agriculture and other things. Indeed, the discovery of oil in Nigeria is more of a curse than blessing. Imagine the days of Cocoa House in Ibadan... Money from cocoa o

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  4. Very good news. Please let it fall more. In fact let the oil dry completely๐Ÿ™

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  5. Dear God we have barely come out of recession we do not want to experience depression nor doom!

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  6. Replies
    1. Babe, it's actually good news. It's time to move away from the curse of the Black Gold. It has made a part of the country so parasitic to the point of irritation. The scramble for elective positions will subside because there won't be free money again. Whoever aspires to lead must come with a plan of how to stimulate the economy by devising other ways of making money. It will also shake the foundations of this country. It is often said that Nigeria has been held together for too long because of oil. Let's wait and see. Let's all tighten our belts for a long ride people. It's gonna be a very long ride.

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    2. It's gonna be a long ride indeed. I smell recession!!! I see this as a wake up call to our leaders,if we can come together as a nation to build together,let everyone go their separate ways and build on their own. It's really scary

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    3. I couldn't agree more ๐Ÿ˜˜๐Ÿ˜˜ This is a wake-up call for our leaders

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    4. Smart @ Ceasar! ๐Ÿ‘Œ

      No functional refinery in an oil producing country.

      Wasted money trunking oil pipelines all the way from Niger-delta to the North years ago.

      Austria has refineries and exports refined petroleum products yet they do not produce oil.

      Wasted more money in this administration prospecting oil and gas in the North with a promise to explore other basins in different parts of the country.

      Botswana exports beef to EU.
      Botswana jumped from among the poorest in 1966 to the third fastest growing in the world by per capita GDP.

      In Nigeria, instead of ranching in the North they used herdsmen to create unnecessary problem.

      Nigeria is blessed with an abundant natural resources - a plethora of mineral deposits, arable land, clement weather human resource, with Atlantic ocean bordering the country in the Gulf of Guinea.

      Botswana, a landlocked country is one of the top 5 richest countries in Africa based on GDP and HDI.
      Yes, their population is very low at 2.3m compared to Nigeria's 180m but "he that is faithful with little will be faithful with much."

      Nigeria refused to be faithful in doing the little good things that build the foundations for a great nation.

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  7. What next for the Nigerian economy? recession?

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    Replies
    1. Yes na!shit is loading and it will spread fast! Everybody should be prepared cause the fan wey go blow the shit (Covid-19) is just loading in Nigeria... My advice is: people should PLS save oh...

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  8. Demand for oil is low at the moment, so I'm not surprised at all

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  9. This a damn shame. Anyhow God has a way of humbling human beings. So the coroV has impacted the transportation in all its forms, that are using fuel or fuel related products. Airplanes, trains, commuter buses are all ground. Demand for oil & its related products is almost at zero. Oil and its byproducts has become too much , sitting in barrels, hence cheap. Economics 101; when demand is high, the product becomes expensive. When demand is low, there is surplus and this drives the price down.

    Result= the oil price/barrel goes under water. I read somewhere its even $10/barrel.


    Concentrate on agriculture oo, no oo. The young fellows who are leaving the glitzy world to date into agric are being laughed at. Some are even being dumped by their fiancees for some vain boys.

    ** Farming is the way to go. Be it plants, livestock, fish farming etc. So long as humans are alive, they must eat. Someone like Empress is into to fish farming quietly, raking her good million Naira returns. But some flimsy, lazy ones would come and say , oh her money is from some man or daddy sugar sugar. Young girls and boys make una receive sense and follow who wey know road.

    ReplyDelete
    Replies
    1. I remember Prophet T.B Joshua said repeatedly in 2018, 2019, and 2020 that Agriculture and Food will be the business that will thrive and help the economy.

      Some people mocked and abused him.

      Maybe because he does not preach with highfalutin words (big grammar) or enticing words of man's wisdom. 1Cor 2v1-4.

      He also said this year the Lord will humble us with our challenges,

      When Pastor E. A. Adeboye spoke what God told him, people mocked and abused him.

      God uses the foolish things of this world to confound the wise.

      Oh, this rudderless generation with unbridled tongue, repent and turn to Jesus Christ for salvation of your souls. He loves you and is calling you to come to Him.

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  10. To the Best of my knowledge, Brent crude is about $25 per barrel and MOST of Nigeria's crude is Brent and not WTI.

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    Replies
    1. we are bonny light. bonny light is 11 dollars

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  11. HOw can crude price be "minus 38 dollars" or did I not read correctly?
    That means, they producers pay the buyers 38 dollars to take their oil?
    Why not refrain from selling it in the first place? ๐Ÿ˜ฎ๐Ÿ˜ฎ๐Ÿ˜ฎ

    ReplyDelete
    Replies
    1. Because they have to keep producing and selling to keep the wells open. The cost of shutting down production wells is very expensive and complicated. Another option is to store the oil which has the same issues. So they rather keep producing, sell at a loss with hope they will recover the money in future, predicted to be by end of summer.

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  12. Time for Nigerians to face agriculture. Agriculture is the present and future.

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  13. We have been telling the government to please diversify.hmmm I hope the government find a solution soon

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  14. It just got real. Everyone should brace up.

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  15. The Brent crude which is Nigeria oil is 25 dollars per barol. It is the US Oil that is 11 dollars.

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  16. US oil as at yesterday was less than $1. Nigeria oil too should crash lower so our govt will think of another source of income. Let's go back to o era of cocoa, oil palm,rubber plantation, in the south and groundnut pyramid in the north.

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  17. Going thru all these just confirms my tot of yesteryears, Buhari is an evil lucked guy, anything he touches turns to dust. His administration has never brought in any good only poverty, hunger, tribalism, nepotism, strife etc. Can someone help me beg bubu to pls resign. Same thing happened in his military tenure, hunger dealt with Nigerians till Babangida took over.

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  18. I guess Next Level came very early. E no concern me. Enjoy yourselves people.

    ReplyDelete

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