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.

OIL STEADY AS MARKET FATHOMS OUT TRADE DEAL

Oil prices have remained steady at close to three-month highs as the much anticipated trade deal was agreed between the US and China. The 18 month trade war had weighed on the global economic growth outlook. The market has greeted the interim agreement as a cause for optimism and an indication...
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ARAMCO HIT $2 TRILLION BUT LONG TERM VALUE STILL UNCERTAIN

Saudi Aramco hit the  $2 trillion valuation on Thursday, briefly achieving the target demanded by  Crown Prince Mohammad bin Salman in 2016. It only  took a day after the Saudi state-backed oil company made its stock market debut. Aramco’s shares rose by 10% on  its first day of trading , the...
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TRUMP AGREES PHASE ONE DEAL WITH CHINA BUT NO TEXT YET

The sporadic trade negotiations between the US and China have been paused as President Trump has agreed to a phase one agreement in principle as December 15th looms large. Trump reportedly signed off on a phase one trade deal with China, averting the December 15th deadline which would trigger  another round...
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OPEC SEEK BULLS AS THEY REVISE 2020 OIL OUTLOOK

Organization of the Petroleum Exporting Countries (OPEC) has revised its outlook yet again and now forecasts  that there will be  a small deficit in global  oil markets in 2020 and believes  that the market is much tighter than previously predicted. The new outlook  provided support for crude oil benchmarks as  prices...
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PRINCE ABDULAZIZ BIN SALMAN MAKES OPEC BELIEVERS AS OIL MARKET REACTS

"Like religion, if you are believer you have to practice. Without practice, you are a non-believer. I do not assume anyone in the room is a non-believer. We are here to deliver. The market will have to trust us, the analysts will have to believe us. Without [this] we cannot deliver...
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MARKETS DOWN AS OPEC CUTS REPLACED BY TRADE WAR FEARS

Last week, the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ including Russia agreed to increase output cuts from 1.2 million barrels per day (bpd) to 1.7 million bpd in an attempt to balance the market and to support prices. Yet oill prices fell for a second day in a...
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BRENT WTI SLUMP AFTER THANKSGIVING ON OPEC & OVERSUPPLY CONCERNS

THE DAY AFTER THANKSGIVING THE MARKET SLUMPS   The day afer Thanksgiving Brent fell almost $1.44 per barrel and WTI fell nearly $3 per barrel with oil prices seeing their largest single day drop in around two and a half months. The sharp drop has been variously attributed in part to...
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HONG KONG ACT MAY TRIGGER SELL OFF IN OIL MARKETS AS CHINA US TRADE NEGOTIATIONS STALL

Hong Kong Human Rights and Democracy Act  Just at the time the oil market  is struggling to break out it could have done with out this. The Trump administration have enacted legislation which targets China's human rights record and its handling of pro democracy protestors in Hong Kong. The legislation not only...
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NIGERIA CRUDE GRADES SPIKE AS QUA IBOE PRICED AT $4+ TO DTD BRENT

QUA IBOE PRICED AT +$4 PREMIUM TO DATED BRENT Qua Iboe the light sweet crude grade produced by Exxon Mobil rom numerous offshore fields in the Bight of Biafra in southeastern Nigeria is being offered at a $4 per barrel premium to Dated Brent, even though official selling prices published on...
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