Oil prices fall below a defined level; budget


Le Sebastine Obasi & Ediri Ejoh
Global oil price may last in the last weeks of the Federal Government's economic projections for 2019 as well as adversely affecting the Intermediate Time Expenditure Framework, MTEF, unless the return is reversed sooner.

Data from the Petroleum Replacement Countries, OPEC, show prices still have a & # 39; hit down a new low $ 59.96 collision every yesterday's barrel. The new price is now under the $ 60 budget budget performance indicator for the 2019 Budget.

President Muhammadu Buhari, Minister for Petroleum Facilities, Ibe Kachikwu, Minister of State, Petroleum Resources and Maikanti Baru, MD Group, NNPC

Therefore, the budget sent to the National Assembly now looks to be reviewed even before considering and debating.

It is expected that the first wound will be & # 39; including the Nation illegal account, ECA, which exceeded $ 2.09 billion as of the National Economic Council (NEC) as of October 16, 2018.

As a result, capital expenditure, which is the main objective of the 2019 budget and the MTEF as well as its Economic and Fàs Economic Development Plan, ERGP, of the federal government; is currently experiencing suffering analysis.

Why have oil prices gone down

It is said that there are several things in play. In particular, there are signs that supply provision is built up. A wooden business is a & # 39; creating more provision, as Iran's representation continues to access the markets with US sanctions offers. OPEC, a quarter of its representatives, tends to vote to cut when it meets the next month. That expectation does not give much relief now, however. The water is also falling on asset prices in the autumn, and it's also suffering from fear of globalization of the global economy in 2019.

The rise from the US build-ups still appears in the mind of traders, and suggest that great hardness is continuing to & # 39; exceeded the OPEC cut cut even though it impedes the positive advances of traders. The world's oil and gas division seemed to be lost About $ 1 trillion in value over 40-day time from October after poor prices dropped around $ 20 per barrel. Registered companies in the US in 500 Standard and Poor $ 240 billion sheds. ExxonMobil lost, for example, worth $ 35 billion.

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Some critics warned that OPEC needs to cut a cut to balance the market. "If you do not make a cut, I'm promising you to be 2014 again," said Mike Bradley, Managing Director at energy industry, Tudor, Pickering, Holt and Company energy investors. As well as speaking, former Chairman of the Nigeria Petroleum Technology Association, PETAN, Bank-Anthony Okoroafor said, "OPEC Members are committed to achieving market sustainability as they are already Looking to have this cut over 1 million to 1.5 million a day during their meeting in December South West Saudi and Russia also look at large cuts every day. These will definitely help to handle the low price of raw oil. "

The tale of Texas

Thousands of thousands, thousands of them, represent a well of oil in the Permian West Texas clay and a rod of New Mexico. In less than a decade, US companies know that. to drill 114,000 drills. Many of them would even lose a profit with low prices as low as $ 30 barrel. A bad OPEC dream will not be able to deepen but next year, when Permian's agents expect to release spreading machines that will put three pipe pipes and more than 2 million daily barrels of oil .

"Permian will continue to grow and OPEC needs to learn to stay with it," said Mike Loya, chief executive in America for Vitol Group, the largest oil trading house in the world. Increasing the US's power to OPEC is one of the biggest challenges of its 60-year history. If Saudi Arabia and its supporters cut when they are on 6 December 2018 in Vienna, higher prices allow you to share a market. But because the Saudis needs lower prices lower to make money as US agents, OPEC can not be able to do it; allow drop prices.

OPEC moves to stop oil prices

Because there is uncertainty about the future poor prices, OPEC has a " make a decision about defective cuttings for a & # 39; Decide an additional reduction in price. Saudi Arabia is particularly aware that OPEC makers will promptly cut daily output of a million barrels; start early next year. In the meantime, Saudi Arabia said that it is the product management of the product by; cutting his product to 500,000 barrels in the day of December. The move is aimed at consolidating low prices that have fallen down recently, so that it can be done. affecting the finance of OPEC members and global oil companies. At the same time, researchers believe that OPEC, led by Saudi Arabia, indeed, "is working responsibly by reducing its productivity that led it to the forefront online to prevent financial loss at risk. "

Nigeria's output of falling oil, such as rising counts

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