OPEC quota cuts envisaged to revive Nigeria oil sector

Oilfrom OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – A local financial house has welcomed the decision by the Organisation of the Petroleum Exporting Countries (OPEC) to lower its
production quotas and revive the industry.

The organisation overcame its internal differences on Wednesday to announce a cut of 1,2 million barrels per day (mbpd) to 32,5 mbpd.

Nigeria is exempted from the cuts because its production is running far behind its own quota. Nigeria has output of 220 mbpd.

First Bank Nigeria (FBN) Capital blamed the setback on the sabotage in the Niger Delta but welcomed the decision OPEV announced in Vienna, Austria.

“The OPEC announcement should be welcomed by the FGN (Federal Government of Nigeria), which is assuming an average price of US$42,5/barrel in its
provisional 2017 budget,” FBN Capital stated.

OPEC is an intergovernmental organisation consisting of Algeria, Angola, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia ,United Arab Emirates and Venezuela.

Global oil prices plunged from US$100 to $40 per barrel in 2014 after the world starting producing more crude oil than needed.

Nigeria’s economy, heavily reliant on oil, was not spared the crisis with revenues falling significantly.

– CAJ News

Short URL: http://cajnewsafrica.com/?p=16778

Posted by on Dec 2 2016. Filed under Africa & World, Energy, Finance, National, Oil & Gas, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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