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.

NIGERIAN CONDENSATE BAIT AND SWITCH OF OPEC QUOTAS

Nigeria has reaffirmed its unwavering commitment to OPEC production cuts  by increasing production of its own oil to its highest output levels  since 2015. The production cuts  were agreed upon under the Declaration of Cooperation (DoC) between member States of the OPEC and Non-OPEC Countries at the last Ministerial Meeting of...
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OPEC BEARS THE PRICE OF US-CHINA TRADE DISPUTE

OPEC BEARS THE PRICE OF US-CHINA TRADE DISPUTE OPEC member states are bracing themselves for a bleak bearish outlook in the short term despite their best efforts to support crude oil benchmarks with supply cuts. The bearish outlook is due to an anticipated slow down in global growth amid the U.S.-China...
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AUTHORITARIAN TRUMP DICTATES POLICY TO THE FED AND US TREASURY

As Donald Trump’ presidency unfolds, he continues to discover artful mechanisms of how to apply his authoritarian instincts to the constitutional power he possess.  His sole objective to circumvent  constitutional restrictions which foil his ability to operate as Putin or MBS to his benefit and to the detriment of others. An...
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CHINA STEADFASTLY DEFY THE US IRAN OIL SANCTIONS

Whilst large European oil companies have resisted every attempt by the EU to get them to engage with the INSTEX mechanism to trade with Iran, China has no such compunctions. The New York Times recently published an article, after  claiming to have received  information from multiple sources alleging  that China has...
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US SHALE THE PONZI OF OUR TIME

 US Shale has become the Ponzi scheme of our times. How much longer can it survive and in what guise?. The long term financial viability of shale amid another dreadful slew  of earnings reports that have come out over the last couple of  days is in a state of  dire qualm....
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NAEC JOURNALISTS "GREET" NEW GMD NNPC

If journalism is to have meaning, to fulfill its raison d'etre, then it must be about speaking truth to power;  giving a voice to the voiceless. The National Chairman of  the National Association of Energy Correspondents of Nigeria (NAEC)  Olatunde Dodondawa led a group of his executives on a courtesy visit...
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CHINA IRAN CRUDE OIL IMPORTS DECLINE - BUT NOBODY LIKES A BULLY

It came as no surprise when the US announced sanctions on Zhuhai Zhenrong, a Chinese state backed enterprise which was set up 25 years ago as the sole importer of Iranian crude to China. Beijings response was swift and equally predictable " “We oppose the bullying and sanctions by the US...
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SAUDIS DIG IN AS OPEC PRODUCTION HITS 7 YEAR LOW

OPEC oil output hit an eight-year low in July as a further voluntary cut by top exporter Saudi Arabia deepened losses caused by U.S. sanctions on Iran and outages elsewhere in the group, a Reuters survey found. OPEC pumped 29.42 million barrels per day (bpd) in July, the survey showed, down...
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BULLS CAUTIOUS ON INVENTORY DRAW AS MARKET WAITS FOR FED

U.S. crude oil inventories fell more than expected last week, logging their seventh-consecutive weekly draw.Initial gains in a knee-jerk reaction quickly faded as bulls turned cautious ahead of the Federal Reserve’s policy decision. The Energy Information Administration said in its regular weekly report that crude oil inventories decreased by about 8.5...
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