NIGERIA: THE CRUDE OIL ECONOMY

Synterra the Nigeria Risk Management Consultants provide insight into how the oil markets affect the Nigerian economy. Nigeria's reliance on crude oil receipts is total. At a time of increasing volatility and uncertainty this blog seeks to provide an analysis of the effect the global energy markets have on business in Nigeria, their relationship with OPEC and how local policy decision making affects investment opportunities.

CORONAVIRUS FEARS SHELVE BP BUY BACK

SHELL SHELVE OIL BUY BACK The UK’s biggest company, Shell, will slow a $25 billion shareholder buyback to a trickle after tumbling oil prices forced it to put more money aside for a rainy day. The oil major is currently undertaking the world’s largest shareholder buyback, returning cash made from a...
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OIL MARKETS GAUGE CORONAVIRUS EFFECT

OIL STEDIES AS MARKET GAUGE CORONAVIRUS Both global oil benchmarks Dated Brent and WTI are currently trading at levels lower than when OPEC introduced their production cuts in December having plummeted to levels last seen in October 2019. Though WTI has clawed its way back to slightly above the $53 per...
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INCREASE IN EQUITY SHORTS AS CRUDE PRICES COLLAPSE

After trading as high as $65.65 on Jan. 8, WTI crude oil futures have fallenWTI crude oil traded around $53.14 on the NYMEX in early Monday trading, down almost $5 a barrel in the past week and only $3 short of a 52-week low . Oil began 2020 with a quick...
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WHAT COST FOR OCCIDENTAL PETROLEUM ? OXY.N

It  now seems that the massive Hedge undertaken by Occidental Petroleum Corp(OXY.N) and reported as “costless” to its investors  at the time back in July is anything but and does not provide adequate downside protection for 2021. At the time Occidental’s priorities were to provide reassurance to apprehensive investors, many who...
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OPEC PRODUCTION FALLS IN DECEMBER TO 29.5M BPD

OPEC oil output fell in December as Nigeria and Iraq adhered more closely to pledged reductions and top exporter Saudi Arabia made further cuts ahead of a new production-limiting accord. On average, the OPEC member States pumped 29.50 million barrels per day (bpd) last month, which was down about 50,000 bpd...
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SHALE LOCKS IN ON HEDGE IN AFTERMATH OF ASSASINATION

According to data compiled and circulated by Bloomberg on Monday a  number of large trades in the financial options market were booked last  Friday, notably some average-price options in the form of three-way collars on the New York Mercantile Exchange(NYMEX) for 2020 and 2021. Those strategies involve a producer buying put...
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ONLY ALL OUT WAR WITH IRAN WILL SHIFT OIL PRICES

THE DEATH OF THE IRANIAN PUPPET MASTER In the wake of the  air strike at Baghdad airport which killed  Major-General Qassem Soleimani, the leader of Iran Revolutionary Guard elite Quds Force responsible for extraterritorial military and clandestine operations. Oil prices jumped to the highest level in more than three months on...
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GLOBAL OIL THE UNCERTAIN FUTURE

Global oil over the years has been a litany of contrasting if not oft times conflicting interests, competing in a far from free market whatever the commentariat would have you believe. As we look forward to 2020 the hopes and expectations of the market are as diverse as the participants.  Questions...
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BRENT WTI END 2019 UP 24% AND 36% FOR THE YEAR AS MARKET SLOWS

WTI crude, the U.S. benchmark, and Brent, the global benchmark, are up around 11.8% and 10.4% this month, respectively. That puts WTI on track for a 36% gain so far this year, while Brent is up around 24%. Trading was quiet on a Monday on the penultimate session of the year....
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