Skip to main content

Saudi Attack: Research Firm Predicts There Will Be No Windfall For Nigeria

This image provided by the US government and DigitalGlobe shows damage to the infrastructure at Saudi Aramco’s Abqaiq oil processing facility in Buqyaq. maldonci/AP

 

An analysis on the impact of the attack on two oil processing plants in Saudi Arabia, which took out five per cent of the world’s daily petroleum supply, concludes that there will be no windfall for Nigeria.

In a report released on Monday, SBM intelligence said the plan by the United States to open up its strategic oil reserves, was behind the closure of that possibility.

The firm said that even if such a window was open, the state of insecurity in the country will limit the extent to which it could stretch its production to meet part of the supply shortfall.

The report said, “Given that the US has said it would release oil from its strategic reserves in order to balance supply, there will be no windfall for Nigeria.

“Internal instability and insecurity mean that Nigeria's ability to take advantage of any major conflict in the Middle East is very limited.”

It however noted that if the rise in prices holds up, some short term benefit would come to the country.

This attack also gives Nigeria an opportunity to continue its longstanding disobedience of the petroleum output quota it reached with its signing of the Declaration of Cooperation in December 2018.

The DoC was an agreement between the Organisation of Petroleum Exporting Countries and a Russian alliance.

SBM expects OPEC not to enforce output restrictions in the light of present happenings.

The report added, “Given what has happened in Saudi Arabia, OPEC is unlikely to enforce the production cuts until the Saudis are back in the market.

“SBM believes that it is unlikely that Nigeria will get the type of revenue rain it did during the Gulf War of 1990-1991.” 

 

Oil News AddThis :  Original Author :  SaharaReporters, New York Disable advertisements : 

from All Content
via

Comments

Post a Comment

Popular posts from this blog

Dust haze weather to prevail on Thursday, December 27

- The Nigerian Meteorological agency (NiMet) predicts thick dust haze weather conditions over most parts of the country - NiMet predicts northern states would experience dust haze - The agency also predicts early morning mist/fog is expected over the coastal cities The Nigerian Meteorological Agency (NiMet) has predicted thick dust haze weather conditions with reduced visibility over most parts of the country on Thursday, December 27. NiMet’s Weather Outlook on Wednesday, December 26, in Abuja, revealed that the central region of the country would record dust haze condition with visibility range of two to five kilometres throughout the day. It added that day and night temperatures of 27 degrees Celsius to 34 degrees Celsius and 10 degrees Celsius to 20 degrees Celsius, respectively, would prevail over the region. READ ALSO: Police reportedly arrest Badeh’s alleged killers The agency predicted that the northern states would experience dust haze with visibility range of two to fi...
Post a Comment
Read more

N2.5bn Fraud: You Have Case To Answer, Appeal Court Tells Suspended NBC Boss, Kawu

The Director General of the National Broadcasting Commission, NBC, Ishaq Kawu. The Court of Appeal, sitting in Abuja, has dismissed an appeal filed by the suspended Director-General of the National Broadcasting Commission, Dr Moddibbo Kawu, challenging the decision of the Federal High Court, to dismiss the no-case submission he filed at the lower court. The Independent Corrupt Practices and Other Related Offences Commission had charged Kawu, Lucky Omoluwa (late Chairman of Pinnacle Communications Ltd) and Dipo Onifade, Chief Operating Officer of the same company, before Justice Folashade Ogunbanjo-Giwa, on a 12-count charge of money laundering. Is'haq Modibbo Kaw THISDAYLIVE The suspended NBC boss and his co-accused then approached the appellate court to reverse the judgment of the Federal High Court. The appellate dismissed the no-case submission filed by Kawu and his co-accused and held that they had an explanation to give when he elected to facilitate the payment of ...
Post a Comment
Read more

Buhari’s Legacy Of Recessions By Fredrick Nwabufo

Fredrick Nwabufo ‘Why always Buhari?’ As it was in 1984 under General Buhari, so it is in 2016 and 2020 under President Buhari? Is it by the unfortunate hands of kismet that recession hits Nigeria every time Buhari takes charge of the country’s affairs? If the recession of the 80s under Buhari was a conspiracy by economic and political factors, to what do we attribute that of his first coming as a civilian President — and now in his second coming? Why does pestilence scourge the land, hunger ravage the population and lives lost malevolently when Buhari presides over the country? Why always Buhari? Buhari’s undoing is his wonted predilection for hierarchising ethnicity, religion and loyalty above competence. Since 1999, no President has obtrusively shown a more nepotistic aspect than Buhari. It is unarguable that the President arrays the most competence-challenged cabinet ever in the chronicle of governance in Nigeria. Yes, a recession cabinet. Fredrick Nwabufo Here is a cabin...
Post a Comment
Read more