Tag
OPEC CUTS
With the right investment and technology, Nigeria can increase its production capacity beyond OPEC's quota
The supply will overshoot the demand in a short time and we will likely slide to where we were in early March 2020.
Economies are opening up, however, the recovery is gradual and will take some time for oil prices to hit pre-COVID-19 levels.
Oil prices, particularly WTI, crashed below $0 during on Monday for the first time ever sending shock waves across the world.
There appears to be no respite in sight for oil producers, as the volatility and continuous price slump in the global oil market continue.
Bonny Light, dropped to about $12 - $13 a barrel this week, according to oil traders following the West African energy market.
Global crude oil prices rose early Friday morning after US President, Donald Trump, laid out unprecedented measures aimed at reviving the American economy which has been devastated by the Coronavirus pandemic.
Despite the deal by the OPEC and its allies, in addition to the intervention of US President, the volatility of the oil market still continues unabated.
Nigeria does not have any crude oil hedging programme in place. Instead, it sells its crude oil on spot prices. This has caused Nigeria to become exposed to oil market price swings.
US President Donald Trump has disclosed that the Organisation of Petroleum Exporting Countries and allies (OPEC+) is looking at 20 million barrels per day oil cut and not the 10 million bpd that is widely reported
Oil prices slumped more than 50 cent a barrel on Monday, even after major producers agreed their biggest-ever output cut.
This is a breakdown of how much Nigeria will be contributing to the cuts including the agreed timelines.