US$100 Oil on the horizon
The Global Oil Market is now approaching “ANOTHER” US$100 unfortunately our oil production capacity is just 1 million bpd which gives us revenues of US$100million per day projected to at least US$30 Billion, if sustained over the next year. The big question, is how much of this projected revenue has been pledged to to forward contracts?
How is the Nigeria Government 🇳🇬 going to react?
Will subsidy come back or will we increase the prices of PMS and AGO since we import products?
How much oil has been sold foward and what is the true picture of our future oil production and how can we know what revenue is really available?
It’s important that we position our economy to take advantage of this windfall. Can we ? Now imagine if we could meet our opec quota of 1.8million bpd not to talk of 2million bpd at US$100, what levels of revenues will come in?
Turning this Economy around is not as difficult as it seems, its just about positioning, focus, instill confidence and doing the right things.Its a marathon not a sprint. The policy consistency over the next one year and restoring confidence back by a solid budget is key.
Excess crude account in 2008 was in excess of US$18Billion which saw us through the global financial crisis today its near zero.
AAA