NIGERIA: THE CRUDE OIL ECONOMY
IS OIL POISED FOR A BREAKOUT?
Against the backdrop of US-China trade negotiations both WTI and Brent saw the highest price finish for a front-month contract since Nov. 19, according to Dow Jones Market Data. Week to date, WTI prices were 5.4% higher, while Brent jumped by 6.7%. Brent crude on Friday topped $66 a barrel for the first time this year, hitting a roughly three-month closing high at $66.25 and rising 6.7 percent this week. Meanwhile, U.S. West Texas Intermediate crude approached $56 on Friday, settling 2.2 percent higher at $55.59 a barrel, the best closing prices since Nov. 19. OPEC earlier in the week reported its crude output had fallen by nearly 800,000 barrels a day in January to average 30.81 million barrels a day, with most of the cuts coming from Saudi Arabia. The International Energy Agency’s monthly oil market report, also released this week, reported the Saudis had cut production by 400,000 barrels a day last month, to average 10.24 million barrels a day. Saudi Arabia, pledged earlier this week to cut output further in the coming months, citing oil minister Khalid al-Falih, who said the country would cut an additional 500,000 barrels a day to take production to 9.8 million barrels a day in March.
GASOLINE IMPORT BURDEN
The Nigerian National Petroleum Corporation (NNPC) between November 2017 and November 2018 imported 19,437,894,096.66 billion litres of refined petroleum products . Nigeria have devised a scheme called the Direct Sales Direct Purchase (DSDP) programme in which it exports the crude oil meant for domestic refining to offshore Refiners. They in turn supply NNPC through the approved local trader with refined products of equivalent value.
NIGERIA SUPPORT SAUDI CUTS 11/03/19
President Muhammadu Buhari, has assured Ahmad Qattan, Special Envoy of King Salman Bin Abdulazi that Nigeria would comply with the Organisation of Petroleum Exporting Countries (OPEC) production quotas to boost crude oil prices through reduction of oil output. The Special Envoy called for greater adherence to production cuts by Nigeria andhoped that he would take a positive message back home. President Buhari said as a responsible member of the OPEC, Nigeria was willing to go along with the Saudi initiative in limiting output so that prices would go up. He further saidoutput cuts have always been difficult for Nigeria considering the country’s peculiar circumstances of large population,
TIN EXPORT NIGERIA
Synterra are able to export high grade tin ore from Nigeria. We agregate the Mining production of a number of artisanal miners and consolidate volumes for exportSynterra has entered into formal partnership ventures with established indigenous, local Miners that have good experience and control producing leases that would benefit from the application of mechanisation (mechanical processes) increasing production to create a Mining business which would deliver exponential upside to both the Miner and his community and the investor.