Saudi Arabia Books Supertankers To Flood U.S. Markets With Oil

Saudi Arabia’s state-run shipping company has hired multiple very large crude carriers to carry all the extra oil it plans on exporting next month—a rare move indeed for the shipping company that sports its own fleet of 41 tankers, according to Bloomberg sources.

Bahri, as the Saudi’s shipping company is known, has booked passage for its crude oil on three VLCCs, each with the capacity to haul 2 million barrels of crude. The preliminary bookings are heading to the US Gulf Coast, the sources say—but the bookings could still fail.

The extra VLCC charters are a logical step given Saudi Arabia’s professed plans to ramp up its crude production to more than 12 million barrels per day, after the OPEC+ fell apart last Friday when Russia refused to join in on additional production cuts.

Next month, Saudi Arabia has plans to increase shipments of crude to its prized market, Asia, who will be more than happy to take on more oil at the substantial discount that the Saudis are selling their oil for as part of its oil war strategy. However, trips from to the US take 40 days, and Bahir’s own tankers would not return to Saudi Arabia in time to load these extra volumes.

But all that could change in the blink of an eye.

The other active participant in the oil price war, Russia, said today that it had not ruled out yet the possibility of rekindling its love affair with Saudi Arabia by returning to cooperation with OPEC should necessity dictate. Russian oil companies and the Russian Oil Ministry will hold talks on Wednesday to discuss the matter, Reuters sources said on Tuesday.

By Julianne Geiger for Oilprice.com

FG proposes budget cut as projected oil price heads for $20

With cost of governance remaining high and slump in revenue subsisting due to the volatility of oil prices at the international market, the Federal Government, yesterday, announced plans to cut its 2020 budget.
   
President Muhammadu Buhari, in December, signed a N10.59 trillion 2020 budget, on the assumption of oil production of 2.18 million barrels per day with an oil price benchmark of $57 per barrel.
   
However, oil prices had plummeted by over 25 percent, forcing future to its lowest in years, as Brent crude benchmark fell from $45 a barrel to $36.32 as at 6:00pm yesterday, while WTI fell from $40.45 to $32.97.

Latest projections by Goldman Sachs yesterday, showed that the oil market is heading into a whole different era now that Saudi Arabia and Russia are squaring off in an all-out oil price war following Friday’s failed OPEC+ agreement, thus making $20 Brent Crude a real possibility.

The Minister of Finance, Zainab Ahmed, speaking in Abuja after a meeting with Buhari, said a committee, including herself, the Minister of State for Petroleum Resources, the Group Managing Director (GMD) of the NNPC and the Central Bank governor would determine the size of the budget cut in the coming days and revisit the benchmark crude oil price of $57 a barrel used to calculate the budget.

However, the Lagos Chamber of Commerce and Industry (LCCI), through its Director-General, Muda Yusuf, said a fall in oil price has implications for the level of fiscal deficit in the budget, as its implementation would be constrained; infrastructure financing affected; borrowing might increase, and the capacity to fund capital project would be severely constricted.

With this scenario, the outlook for oil-dependent economies looks rather gloomy, he added.Oil prices plunged by 10 per cent on Friday after OPEC and its Russia-led non-OPEC allies failed to agree on how to handle the depressed demand amid the Coronavirus outbreak.

The Saudis and OPEC insisted on a massive 1.5-million-bpd cut through end-2020, but Russia refused to continue ceding more ground and market share to U.S. shale with the OPEC+ production cut deal, which hadn’t materially moved oil prices higher, especially with the slump in demand due to the epidemic.

As oil price yesterday collapsed to what could be described as the worst in about three decades due to rivalry between Saudi Arabia and Russia, industry analysts said Nigeria and the global economy might not recover quickly from the shocks.

source: Guardian

Oil price crash: Nigeria needs emergency measures — SEC

Acting Director-General of the Securities and Exchange Commission, SEC, Ms Mary Uduk, yesterday, disclosed that emergency measures needed to be put in place by the country to insulate the Nigerian economy against expected shocks caused by the falling crude oil prices and increasing spread of coronavirus.

Addressing newsmen in Abuja, on its forthcoming International conference on Nigeria’s Commodities Market, Uduk, stated that with the current state of things, Nigeria’s 2020 budget is already seriously threatened.

She maintained that the Nigerian capital market was not totally insulated from the global shocks, noting that the commission would continue to monitor developments in the global market to ensure that the effect on the Nigerian capital market was minimal.

According to her, the declining crude oil price if not properly managed, would affect Nigeria’s foreign exchange-earning ability and the capacity of the country to service its debts.

She called for a multi-sectoral approach towards addressing the challenges to ensure that the country does not plunge into another round of recession.

Uduk, however, commended efforts spearheaded by the Central Bank of Nigeria, CBN, noting that the apex bank needed to be supported by stakeholders across all sectors of the Nigerian economy in order to achieve meaningful results.More in Home

She said: “In CBN right now, the government has convened a conference that is looking at how this thing is affecting the economy of Nigeria. The budget 2020 is already seriously threatened because the country’s crude oil benchmark was at $57 per barrel, but as of last night when I was looking at a report on a news network, I saw that oil price had gone down to $31 per barrel. That is how bad it is.

“The government has to sit down and calibrate and look at what are the steps that are to be taken in order to avoid a recession if we are not already even there. And you know that will affect our ability to earn foreign exchange which is predicated on doing a lot of things. We have to service our debts and all of that.

“It does not just have to be one sector it has to be a concerted effort, all of our needs to sit down and say what can we do and right now as we speak it is been done in CBN.”

Uduk further stated that the forthcoming International conference on Nigeria’s commodities market was another platform for critical stakeholders to brainstorm on issues bothering on diversification of the Nigerian economy and the roles agriculture would play in insulating the Nigerian economy from the shocks in the global economy.

She commended the Federal Government’s efforts at diversifying the Nigerian economy and moving the country away from overreliance on one commodity, adding that agriculture remained an important part of that plan holding the potential of delivering on the country’s food security needs, providing jobs and increasing our foreign exchange earnings.

“The International Conference on Nigeria’s Commodities Market 2020 will gather relevant stakeholders in the commodities ecosystem to consider the most pertinent issues in growing the ecosystem in Nigeria, with the end goal of creating an enabling environment for the deployment of innovative solutions that improve processes, products, productivity, and the partnerships available in the market as well as enable investors to access various investment opportunities across the value chain,” the SEC boss noted.

Vanguard

11-03-2020

AGO [/vc_column_text][/vc_column][/vc_row]PORT HARCOURT DEPOTDEPOT PRICEAVIDOR PH/NIPCO₦ 183.0SHORELINK BULK STRATEGIC PHTULCAN/TSL₦ 185.0MASTERS₦ 185.0LIQUID BULK₦ 185.0STOCKGAP₦ 185.0NIPCO/SIGMUND₦ 185.0BULK STRATEGIC/NIPCOBULK STRATEGIC/TULCANCONOIL₦ 185.0SAHARA₦ 183.50 CALABAR DEPOTDEPOT PRICENORTHWESTAMMASCO₦ 187,0MAINLANDSAMON PET₦ 184.0FYNEFIELD₦ 184.0ALKANESYSG (YOUNG SHALL GROW)BLOKKS HYDEAZMAN/NIPCO₦ 185.0UGO HANNAH WARRI DEPOTDEPOT PRICERAINOIL OGHARA₦ 180.0NEPAL OIL & GAS / NNPCPRUDENT OGHARA₦182.0MATRIX₦174.0CYBERNETICSTAURUS₦181.0OPTIMA₦181.0PINNACLEAYM SHAFA₦ 175.0 LAGOS DEPOTDEPOT PRICEAFRICA TERMINALS₦ 171.5IBACHEM₦ 162.50IBETO₦ 162.5INT. OIL₦ 161.5LEIGHTEN...

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10-03-2020

AGO [/vc_column_text][/vc_column][/vc_row]PORT HARCOURT DEPOTDEPOT PRICEAVIDOR PH/NIPCO₦ 185.0SHORELINK BULK STRATEGIC PHTULCAN/TSL₦ 185.0MASTERS₦ 185.0LIQUID BULK₦ 185.0STOCKGAP₦ 185.0NIPCO/SIGMUND₦ 185.0BULK STRATEGIC/NIPCOBULK STRATEGIC/TULCANCONOIL₦ 185.0SAHARA₦ 185.0 CALABAR DEPOTDEPOT PRICENORTHWESTAMMASCO₦ 187,0MAINLANDSAMON PET₦ 184.0FYNEFIELD₦ 184.0ALKANESYSG (YOUNG SHALL GROW)BLOKKS HYDEAZMAN/NIPCO₦ 185.0UGO HANNAH WARRI DEPOTDEPOT PRICERAINOIL OGHARA₦ 180.0NEPAL OIL & GAS / NNPCPRUDENT OGHARA₦182.0MATRIX₦180.0CYBERNETICSTAURUS₦181.0OPTIMA₦181.0PINNACLEAYM SHAFA₦ 182.0 LAGOS DEPOTDEPOT PRICEAFRICA TERMINALS₦ 171.5IBACHEM₦ 166.0IBETO₦ 166.0INT. OIL₦ 171.0LEIGHTEN...

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09-03-2020

AGO [/vc_column_text][/vc_column][/vc_row]PORT HARCOURT DEPOTDEPOT PRICEAVIDOR PH/NIPCO₦ 185.0SHORELINK BULK STRATEGIC PHTULCAN/TSL₦ 185.0MASTERS₦ 185.0LIQUID BULK₦ 185.0STOCKGAP₦ 185.0NIPCO/SIGMUND₦ 185.0BULK STRATEGIC/NIPCOBULK STRATEGIC/TULCANCONOIL₦ 185.0SAHARA₦ 185.0 CALABAR DEPOTDEPOT PRICENORTHWESTAMMASCO₦ 187,0MAINLANDSAMON PET₦ 184.0FYNEFIELD₦ 184.0ALKANESYSG (YOUNG SHALL GROW)BLOKKS HYDEAZMAN/NIPCO₦ 185.0UGO HANNAH WARRI DEPOTDEPOT PRICERAINOIL OGHARA₦ 180.0NEPAL OIL & GAS / NNPCPRUDENT OGHARA₦182.0MATRIX₦180.0CYBERNETICSTAURUS₦181.0OPTIMA₦181.0PINNACLEAYM SHAFA₦ 182.0 LAGOS DEPOTDEPOT PRICEAFRICA TERMINALS₦ 171.5IBACHEM₦ 166.0IBETO₦ 166.0INT. OIL₦ 171.0LEIGHTEN...

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05-03-2020

AGO [/vc_column_text][/vc_column][/vc_row]PORT HARCOURT DEPOTDEPOT PRICEAVIDOR PH/NIPCO₦ 185.0SHORELINK BULK STRATEGIC PHTULCAN/TSL₦ 185.0MASTERS₦ 185.0LIQUID BULK₦ 185.0STOCKGAP₦ 185.0NIPCO/SIGMUND₦ 185.0BULK STRATEGIC/NIPCOBULK STRATEGIC/TULCANCONOIL₦ 185.0SAHARA₦ 185.0 CALABAR DEPOTDEPOT PRICENORTHWESTAMMASCO₦ 187,0MAINLANDSAMON PET₦ 185.0FYNEFIELD₦ 186.0ALKANESYSG (YOUNG SHALL GROW)BLOKKS HYDEAZMAN/NIPCO₦ 185.0UGO HANNAH WARRI DEPOTDEPOT PRICERAINOIL OGHARA₦ 180.0NEPAL OIL & GAS / NNPCPRUDENT OGHARA₦182.0MATRIX₦180.0CYBERNETICSTAURUS₦181.0OPTIMA₦181.0PINNACLEAYM SHAFA₦ 182.0 LAGOS DEPOTDEPOT PRICEAFRICA TERMINALS₦ 171.5IBACHEM₦ 171.50IBETO₦ 172.50INT. OIL₦ 171.0LEIGHTEN...

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Nigeria Plans Budget Review After Covid-19 Hits Oil Prices

(Bloomberg) — Nigeria may have to adjust its budget this year after fears of coronavirus pandemic dragged the price of crude under the target set in its 2020 spending plan.

“The current crude oil price of $53 a barrel is below the budget benchmark. So what we are doing is studying the situation. We are committed to doing a midterm review,” Zainab Ahmed, Nigeria’s Minister of Finance told reporters in Abuja, the nation’s capital.

Nigerian President Muhammadu Buhari signed the country’s 10.6 trillion naira ($29 billion) spending plan into law this year based on an crude price projection of $57 a barrel and targeted oil earnings of 2.64 trillion naira. Brent crude prices are down about 22% this year.

Africa’s largest oil producer relies on earnings from the black commodity for about 50% to 60% of its income and more than 90% of its export revenues.

The International Monetary Fund slashed the West African nation’s economic growth projection to 2% from 2.5% because of a decline in oil prices.

“We are not taking any measures now until we have a reasonable period within which we make a review and then we may need to do an adjustment to the budget through working together with the National Assembly,” she said.

(Adds projected oil earnings to third paragraph)

source:investing.com

05-03-2020

AGO [/vc_column_text][/vc_column][/vc_row]PORT HARCOURT DEPOTDEPOT PRICEAVIDOR PH/NIPCO₦ 185.0SHORELINK BULK STRATEGIC PHTULCAN/TSL₦ 185.0MASTERS₦ 185.0LIQUID BULK₦ 185.0STOCKGAP₦ 185.0NIPCO/SIGMUND₦ 185.0BULK STRATEGIC/NIPCOBULK STRATEGIC/TULCANCONOIL₦ 185.0SAHARA₦ 185.0 CALABAR DEPOTDEPOT PRICENORTHWESTAMMASCO₦ 187,0MAINLANDSAMON PET₦ 185.0FYNEFIELD₦ 186.0ALKANESYSG (YOUNG SHALL GROW)BLOKKS HYDEAZMAN/NIPCO₦ 185.0UGO HANNAH WARRI DEPOTDEPOT PRICERAINOIL OGHARA₦ 180.0NEPAL OIL & GAS / NNPCPRUDENT OGHARA₦182.0MATRIX₦180.0CYBERNETICSTAURUS₦181.0OPTIMA₦181.0PINNACLEAYM SHAFA₦ 182.0 LAGOS DEPOTDEPOT PRICEAFRICA TERMINALS₦ 180.5IBACHEM₦ 173.0IBETO₦ 173.0INT. OIL₦ 180.0LEIGHTEN...

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Reps summon 14 CEOs of International Oil Companies

The House of Representatives on Tuesday summoned Managing Directors/Chief Executive Officers of 14 major oil companies operating in Nigeria in the bid to avert breakdown of law and order in the oil-producing communities in Delta, Abia, Imo, Bayelsa, Rivers among others.

Chairman, House Committee on Treaties, Protocols and Agreements, Hon. Nicholas Ossai issued the directive at the investigative hearing into various petitions initiated by the oil companies held at the instance of Joint Committee on Treaties, Protocols & Agreements and Petroleum Resources (Upstream).

They are Managing Directors of South Atlantic Petroleum Nigeria Limited, Shoreline Petroleum Limited, Conoil Nigeria Limited and Energy Nigeria Limited, Niger Delta Company, MD Western, Orion Oil, Lee Engineering Limited, Aiteo, NSPDC, New Cross Oil, Sterling Oil Global Limited, Ran Ocean Oil, Eroton and Seplat Oil.

While frowning at the failure of the concerned authorities to honour the invitations sent by the Committee, Hon. Ossai observed that: “They have disrespected the House of Representatives by not appearing even last week and this week. And this Committee will not fail to deal with the issue squarely.”

The petitioners led by traditional rulers drawn from the affected communities solicited for the Committee’s intervention on the alleged flagrant disregard for the Memorandum of Understanding MOUs signed by the IOCS and host communities.More in Home

The community leaders also accused that both past and present Managing Directors and top managers of the major IOCs including Shell Petroleum Development Company (SPDC), Nigeria Agip Oil Company (NAOC), Chevron Nigeria Limited CNL and Exxon-Mobil Nigeria Limited and other IOCs of fraud in the implementation of MoUs, adding that they had shown disregard for honouring agreements.

At the hearing, representatives of Okiama and Fierebagha communities of Bayelsa State, Mr Ogiri Samuel, and those of Ohaji and Ugwuta communities of Imo State, Mr Isidore Nwabali, said that no form of community development project including roads, potable water and healthcare services had been implemented by these IOCs in their areas.

However, representative and General Manager, Public Affairs of the Nigeria Ship Oil Company NAOC, Callista Azuogu, has refuted the allegations by the oil host communities saying that it had entered into and implemented 115 MOUs in those areas.

Speaking on behalf of 12 communities known as Etche 2 cluster in Rivers State, Mr Okere, alleged that SPDC has been operating in the community since the 1950s with no projects on the ground for the benefits of the people.

He said that the company imposed the Global Memorandum of Understanding, GMoU it signed with them, lamenting that they defaulted in many areas of its provisions.

“They prepared and lord it on the community. If you refuse, they rather shut down the clusters. We need to apply to get this document.

“For a cluster of 9 with 69 oil communities, N110 million is shared amongst the communities, when you put all these, you know what is accruable is minimal,” he said.

On his part, Hon. Isdor Nwabagbara who spoke on behalf of Ohaji Egbema and Uguta in Imo State argued that SPDC refused to sign an MoU with them.

“I am shocked to hear that there is anything called MoU, since Shell came in 1973, no single project has done by Shell in Ohaji,” he said.

While expressing concern over the development, Hon. Ossai stressed the need for all the oil companies operating in the region to engage the communities with the view to engender peace in the area.

While speaking on the plight of the people of Okioma community from Southern Ijaw Local Government, Pastor Igiri Samuel accused Agip of failing developmental project despite signing an agreement with the community.

He said: “The last MoU was signed in 2009. No other projects. Only intervention projects, an extension of light. In term of employment, it is zero. From 1989 till date, nobody has been employed.”

On his part, Chief Isaiah Young Dede from Nembe Kingdom of Bayelsa State also decried the action of AGIP.

“There are 123 oil wells located in our area. Agip only signed one document and has not been implemented it,” he said.

Speaking earlier, Agip’s General Manager, Public Affairs explained that the company enjoyed a cordial relationship with its host communities.

He said: “We have 300 host communities both transit and host. They have access to power: in Imo Bayelsa, Delta.

“We supply power from our flow stations free of charge to the communities. They have access to water. We ensure that we live together. Before now, we had no fence because we believe that communities cannot attack us.

“On the areas of employment and empowerment, most of our projects are done by the communities, most of our employees are from the Niger Delta,” he informed the Committee.

While giving the position of Chevron, the company represented the General Manager, Policy, Government/Public Affairs, Mr Esimaje Brikin stated that they involved the communities through the GMoU to determine their needs, the communities said there were issues of unemployment and funding.

He, however, noted that the oil company had an opportunity for an internship but did not extend it to host communities, adding that there were also denied supply even tissue papers.

While reacting to the position of Exxon Mobil, Elder Jones Mkpa, who spoke on behalf of Okorutit village in Ibeno Local Government Area of Akwa Ibom threatened that: “Our youths will block the road and the organization will call in soldiers. There are no community projects and there is agitation every time by the youths. No peace in the community.”

However, there was a mild protest by the host community during the presentation of the Managing Director of Total Exploration Oil Company, Mr Energia Leslie, who explained that the Company always carried their host communities along in the implementation of its agreement.

In a swift reaction to his presentation, representatives of Eleogu community alleged that the oil company refused to implement the proposed scholarship scheme stipulated in the agreement.

While ruling, Hon. Ossai directed management team of 14 oil companies to appear before the Committee next week Tuesday to give details of the agreement they have with their host communities.

source: trubuneonline