Oil Tumbles Again, Nears 11-year Low
By Hamisu Muhammad & Daniel Adugbo with agency report
Nigeria Daily Trust
Dec 15 2015 12:16AM
Oil tumbles again, nears 11-year low
Photo From Left: Minister of State for Petroleum, Dr, Ibe kachukwu and Permanent Secretary of the Ministry, Mrs Jemila Soara during the World Press briefing on the coming hosting of 6th African Petroleum Congress and Exhibition coming up in March 2016 in Abuja yesterday.
Oil prices tumbled 4 per cent yesterday, coming close to their 11-year low, on growing fears that the global oil glut would worsen in the months to come in a pricing war between leading OPEC and non-OPEC producers.
Brent crude fell by 4 per cent to below $36.40 a barrel for the first time since December 2008 and U.S. West Texas Intermediate (WTI) sank almost 3 per cent below $34.60 a barrel.
Brent traded only 14 cents above the lows last seen during the 2008 financial crisis of $36.20 a barrel. President of the Organization of Petroleum Exporting Countries (OPEC) and Nigeria’s Minster of State for Petroleum Resources Dr. Ibe Kachikwu said yesterday that the association would have no choice but to summon members to an emergency extraordinary meeting if oil price continues to fall.
OPEC is not due to meet until June 2, 2016 but Dr. Kachikwu who chaired the last OPEC meeting in December 4 as its President said an OPEC emergency meeting is likely in the months of March or April to figure out how the group can stem the collapse in oil prices.
“I expect to see an OPEC meeting in the months of March or April it depends on what the behavioural track record of oil is looking like, right now it is trending southward. Anticipation is that it should begin to trend upward about February next year and if it doesn’t, obviously we are in for a very urgent meeting,” Kachikwu whose headship of OPEC would end 1st January 2016, said at a briefing in Abuja to herald the 6th Africa Petroleum Congress (CAPE VI) billed for March 2016 in Nigeria.
OPEC rules say a simple majority of its 12 members is needed to call an emergency meeting. The group at its last meeting on December 4 failed to agree on output targets to reduce oil supply. Since then the price of oil has plunged below $40 per barrel to trade at around $38.
Naira, the Nigeria’s offical currency yesterday continued to fall at the parallel market otherwise called black market. The rate slipped to 262 a dollar even as the official rate or the interbank rate remains stable at 199.2 a dollar.
There are concerns over shortage of forex inflow for Nigeria due to the downward trend of the crude oil price since mid-last year which triggered the devaluation of Naira for about two times.
Read more at http://www.dailytrust.com.ng/news/business/oil-tumbles-again-nears-11-year-low/124360.html#oRf3xbky1lXUK3W6.99
Nigeria Daily Trust
Dec 15 2015 12:16AM
Oil tumbles again, nears 11-year low
Photo From Left: Minister of State for Petroleum, Dr, Ibe kachukwu and Permanent Secretary of the Ministry, Mrs Jemila Soara during the World Press briefing on the coming hosting of 6th African Petroleum Congress and Exhibition coming up in March 2016 in Abuja yesterday.
Oil prices tumbled 4 per cent yesterday, coming close to their 11-year low, on growing fears that the global oil glut would worsen in the months to come in a pricing war between leading OPEC and non-OPEC producers.
Brent crude fell by 4 per cent to below $36.40 a barrel for the first time since December 2008 and U.S. West Texas Intermediate (WTI) sank almost 3 per cent below $34.60 a barrel.
Brent traded only 14 cents above the lows last seen during the 2008 financial crisis of $36.20 a barrel. President of the Organization of Petroleum Exporting Countries (OPEC) and Nigeria’s Minster of State for Petroleum Resources Dr. Ibe Kachikwu said yesterday that the association would have no choice but to summon members to an emergency extraordinary meeting if oil price continues to fall.
OPEC is not due to meet until June 2, 2016 but Dr. Kachikwu who chaired the last OPEC meeting in December 4 as its President said an OPEC emergency meeting is likely in the months of March or April to figure out how the group can stem the collapse in oil prices.
“I expect to see an OPEC meeting in the months of March or April it depends on what the behavioural track record of oil is looking like, right now it is trending southward. Anticipation is that it should begin to trend upward about February next year and if it doesn’t, obviously we are in for a very urgent meeting,” Kachikwu whose headship of OPEC would end 1st January 2016, said at a briefing in Abuja to herald the 6th Africa Petroleum Congress (CAPE VI) billed for March 2016 in Nigeria.
OPEC rules say a simple majority of its 12 members is needed to call an emergency meeting. The group at its last meeting on December 4 failed to agree on output targets to reduce oil supply. Since then the price of oil has plunged below $40 per barrel to trade at around $38.
Naira, the Nigeria’s offical currency yesterday continued to fall at the parallel market otherwise called black market. The rate slipped to 262 a dollar even as the official rate or the interbank rate remains stable at 199.2 a dollar.
There are concerns over shortage of forex inflow for Nigeria due to the downward trend of the crude oil price since mid-last year which triggered the devaluation of Naira for about two times.
Read more at http://www.dailytrust.com.ng/news/business/oil-tumbles-again-nears-11-year-low/124360.html#oRf3xbky1lXUK3W6.99
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