Crude Oil May Hit $150

Crude Oil may hit $ 150/barrel in 2012 on the back of increasing volatility in major producing Nations such as Nigeria and embargo on crude out of Iran.

Many commodity analysts when forecasting 2012 crude oil prices, did not take into the consideration the re-emergence of hostilities in the Niger Delta region especially hostilities aimed at major oil companies.

A group purported to be the Movement for the Emancipation of the Niger Delta (MEND) has stated that it will continue to execute “major attacks on oil installations to demonstrate to the world the helplessness of oil companies and the Nigerian military.” This was after a February 4^th attack on an Italian Oil companies pipeline in the Niger Delta.

Nigeria only recently began to recover lost production caused by Niger Delta militants between 2006 and 2009. Production losses estimated to be at about 28% according to Bloomberg Data.

Also only yesterday Shell warned of a shut-in of over 600,000 barrels per day Nembe Creek Trunkline (NCTL) due to oil thieves sabotaging its pipelines. It also claimed about 140,000 barrels per day of this production is already being lost to crude oil thieves.

Managing Director of Shell Petroleum Development Company (SPDC) in Nigeria has stated that unless Nigeria’s government intervenes the level of crude oil production will be unsustainable in what will be a major economic blow to the US largest supplier of oil in Africa.

IRAN CONCERNS

Officials in Iran have stated that crude oil could hit $150/barrel due to Iran’s response to EU embargo on its crude. Iran is considering an outright ban of sales to Europe in retaliation. The EU sanctions are to take effect in the Summer, however Iran is considering stopping sales before the summer inn order to thumb its nose at the economic region.

Iran has also said it will boost domestic refining capacity and that it can easily find replacement markets for the 18% of its crude consumed by the EU.

The head of the National Iranian Oil Company, Ahmad Qalehbani was quoted as saying, “It seems we will witness prices from $120 to $150 in the future.”

The Iranian parliament is considering a law to ban exports of crude to Europe for 5 to 15 years.

2 Comments

1. 

   Anonymous

   February 7, 2012 at 11:47 am

   Established by the NNPC Act No. 33 of 1st April, 1977
    
   Mandate
   Management of All Government in the Nigerian oil Industry
   Coordinating the development of Nigerians first gas master plan (GMP)
   Ensures efficient and effective operations in both downstream and upstream operations in the oil and gas sector
   Co-ordinates the activities of its subsidiaries for effective service delivery.
    
   Madam Minister,
    
   (1) Please ASK yourself, Have these managers respected there VALUES .
    
   (2) With the huge fraud within the NNPC and its agents, the managers, starting from GROUP Managing directors have failed Woefully, defrauding the NATION and bastardising with huge abuse the oil sector which ought to keep every Nigerian happy.
    
   (3) No body is above the law , these guys have committed crimes, relocating them within NNPC is Nothing More like a MOCKERY to Nigerians .
    
   MADAM Minister IT’S A BIG SHAME, you cannot take action on the thieves .
    
   EFCC – SHAME TO YOU.
    
   NASS — SHAME YOU ARE ALL INVOLVED.
    
   PRESIDENT – NIGERIAN ARE DISAPPOINTED
    
   READ BELOW NNPC POLICY
    
2. 

   Anonymous

   February 8, 2012 at 6:35 am

   ·                                 NIGERIAN PLEASE STOP CORRUPTION AND MAKE THIS COUNTRY GOOD .Let it be known that Nigeria has always been seen as a country of hope for many, I am not sure if it is a country of destiny for all. It is only in Nigeria that Civil Servants comes millionaires, it is also a nation that promotes selection of candidates rather than election. By adopting this kind of anti social corrupt practices, people of dubious character eventually come into politics through the back door. If the nation can have the right people at the right place, at the right time, within the right environment with the right resources, the nation could be transformed from failed state to a state of destiny. Nigeria is seen as a church and generator economy, in this case, underdevelopment will not only spread, likewise stability will be impossible.The countries our leaders do oil business call us Fools .Imagine when a business analylist was speaking on emirate news that “Days of free oil is gone ,with the introduction of regulations countries becoming smarter and wiser”.The way out is to force those who stole Nigeria money to be call to order and put in place some preventive measures with heavy consequences for anybody that is guilty of any malpractices to defraud the nation.Once again, leadership without dynamism of anti-corrupt measures, will prevent nation building and it will be impossible to speak of peace and development. Good luck Nigeria.