Revenues from Crude Down to $6.1bn in Q3

Revenue from crude oil may have declined to $6.1 billion in the third quarter of this year from the $8.8 billion it stood in the previous quarter.
Bismarck Rewane, chief executive officer of Financial Derivatives Company (FDC) said the 28 per cent oil price decline will not be immediately felt on expenditure.
He said, first of all, it will erode the fiscal buffers before widening the deficit. the result is that the Federation Account Allocation Committee (FAAC) allocation was down 1.67 per cent to N603 billion in spite of the augmentation from Excess Crude Account (ECA).
Fiscal deficit in 2013 was N800 billion.
But external buffers are depleting at a much slower rate.
Oil prices fell sharply by 28.5 per cent to $83 per barrel (pb) from a peak of $116pb in June
A combination of slowing demand and increased
Production.
Global demand in 2014 is expected to expand by less than 1.0 million barrel per day (mbpd). Demand in the Organisation for Economic Co-operation and Development (OECD) will contract marginally and grow slightly in the U.S.
Saudi Arabia is offering steep discounts ahead of the Organisation of Petroleum Exporting Countries (OPEC) meeting. But the OPEC cartel is expected to impose and enforce new production quotas at their next meeting.
Nigerian production inched up to 2.03 mpbd, even as oil price fall is already having a negative effect on revenues.

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