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Economy & Politics

Output cut: Nigeria leads in OPEC non-compliance with 50 unsold cargoes of crude

Nigeria and Iraq were reported not to have kept to their commitment to the huge production cut deal that had promised to reduce output by 9.7 million barrels of crude oil per day.

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Gas is the new petrol - FG to Nigerian car owners, intervention fund, NCDMB, output cut, Petroleum Industry Bill to be passed by mid-2020, says Sylva, FG discovers crude oil in north, says there’s more , OPEC, non-OPEC countries to meet as Saudi, Russia price war affects Nigeria’s budget, FG considers fuel price reduction, OPEC deal: Nigeria to generate additional $2.8 billion revenue as FG reacts

As opinions continue to differ on whether OPEC will extend its current oil output cut beyond June, available information has shown that not all members of the oil cartel complied fully with their agreed quotas for the month of May. This is despite the fact that the oil output by OPEC member countries reached its lowest in almost 20 years.

Available data from oilprice.com showed that OPEC members cut their output by 5.91 million barrels per day from the April level, producing 24.77 million barrels per day. This figure also showed a 4.48 million barrel per day of the agreed output cut, thereby representing a 74% compliance level.

READ ALSO: Nigerian Breweries, Stanbic, Guinness, Dangote party with N8.59 billion on stock market bullish run

Nigeria and Iraq were reported not to have kept to their commitment to the huge production cut deal that had promised to reduce output by 9.7 million barrels of crude oil per day.

Iraq was able to achieve just 38% compliance of its agreed output cut for the month of May, while Nigeria, which achieved a much lower compliance of the agreed output cut, recorded 19% compliance of what was agreed. Saudi Arabia showed the highest compliance, recording 96% of the agreed output cut.

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Some have attributed the noncompliance of some members of OPEC to the agreed production cut, to the contractual obligations and commitment to buyers, given the short timeframe between when the agreement for the output cut was made and its implementation.

Meanwhile oil exports from Angola and Congo remained steady at high prices on Friday, while Nigerian oil fared lower amid huge inventory of unsold cargoes.

Nigeria continues to face some difficulty in the oil market, primarily due to sluggish demand from Europe; it has around 50 unsold cargoes of crude oil yet to be sold for the months of June and July.

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Meanwhile, India has become one of the few buyers for the Nigerian oil. Indian oil firms bought about 5-6 million barrels of Nigerian crude oil last week and has bought about 2 million barrels as at Thursday this week.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Economy & Politics

Buhari in crucial meeting with Obasanjo, other former heads of state

President Buhari is presiding over a National Security Council meeting with some former heads of state and some security chiefs.

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Buhari in crucial meeting with Obasanjo, other former heads of state

President Muhammadu Buhari is currently presiding over a National Security Council meeting with some former heads of state and some security chiefs.

READ: Obasanjo opens garment factory, competes with Nike Art Gallery, Sam & Sara 

Although the agenda of the meeting is not made public, issues bothering on the current security situation in the country are believed to top the agenda. This follows the outbreak of violence across the country during the protest against police brutality and extra-judicial killings, which has led to the loss of lives and destruction of public assets and private properties.

READ: Update: Buhari seeks power to freeze accounts, clamp down on money launderers

According to media reports, the meeting which is coordinated from the Council Chamber of the Presidential Villa, Abuja, has in virtual attendance General Yakubu Gowon (rtd.), former President Olusegun Obasanjo, Gen Abdulsalami Abubakar (rtd.), former President Goodluck Jonathan and former head of interim national government, Chief Ernest Shonekan.

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READ: #EndSARS: Feminist Coalition raise Cryptos worth $126,000

Others who are physically present at the council chambers are Vice President Yemi Osinbajo;  National Security Adviser, Major General Babagana Monguno (rtd.); Chief of Defence Staff, General Gabriel Olanisakin; Inspector-General of Police, Mohammed Adamu; Director-General, Department of State Services, Yusuf Bichi; and Director-General, National Intelligence Agency, Ahmed Rufai, among others are attending with the President.

READ: #EndSARS: Buhari holds National Security Council meeting with Osinbajo, IGP, others

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This meeting is coming a day after President Buhari’s national broadcast on the security situation in the country calling for an end to the #EndSARS protests as their voices have been loudly heard.

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Economy & Politics

Senatorial, State House of Assembly bye-elections postponed – INEC

Senatorial and State House of Assembly bye-elections slated to hold on October 31 in 11 states have been postponed by INEC.

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Nigeria's election delay

The 6 Senatorial and 9 State House of Assembly bye-elections slated to hold on October 31 in 11 states of the Federation has been postponed by the Independent National Electoral Commission (INEC). The vacancies were as a result of death and resignation of previous members.

According to the statement issued by its National Commissioner & Chairman, Information and Voter Education, Festus Okoye Esq., INEC said the decision was taken after meeting with the 37 Resident Electoral Commissioners (RECs) on Thursday.

Though the commission did not categorically state the reason for the postponement, feelers are that it may not be unconnected with the raging #EndSARS protests across the nation.

 

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Economy & Politics

Some Nigerians mistook promptness of FG response as sign of weakness – Buhari

President Buhari has said that FG’s promptness to consent to the demands of the protesters was taken as a sign of weakness.

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Buhari says large proportions of new COVID-19 infections now occur in communities

President Muhammadu Buhari has pointed out that the promptness with which the Federal Government acted in meeting the demands of the #EndSARS protesters seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.

This was disclosed by the president in his national broadcast on Thursday, October 22, 2020, on the current widespread violence which has engulfed the country following the protest against police brutality and extrajudicial killings.

The president said that the government listened to the protesters and after evaluating their five-point demands, they were accepted and some of them implemented, which includes the disbandment of SARS.

In his address to Nigerians, President Buhari said, “As a democratic government, we listened to, and carefully evaluated the five-point demands of the protesters. And, having accepted them, we immediately scrapped SARS and put measures in place to address the other demands of our youth.

“On approving the termination of SARS, I already made it clear that it was in line with our commitment to the implementation of extensive Police reforms.

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“Sadly, the promptness with which we have acted seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.

The president said the actions of these elements has caused serious violence which has led to the loss of human lives, attack on correctional facilities, destruction and vandalization of public and private properties, attack on the palace of Oba of Lagos, invasion of International Airport and so on.

While acknowledging that the choice to demonstrate peacefully is a fundamental right of every citizen as enshrined in the constitution, the president pointed out that this right to protest also imposes on the demonstrators the responsibility to respect the rights of other citizens and the necessity to operate within the law.

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