How Nigeria fares as Saudi Arabia, Qatar & Russia Agrees to Freeze Oil Output

Crude oil prices have been on the rise in the past 24 hours, settling at $34 on Tuesday but the rise in prices may not be good news for Nigeria, as the country may be forced to under-produce and renege on its 2016 targets.

Following an agreement between Saudi Arabia, Russia, Qatar and Venezuela to freeze output at January 2016 levels, and speak with Iran to cut expected increase in output to tackle global oversupply, crude oil prices have been on the rise in the past 24 hours, settling at $34 on Tuesday. 

 

It was reported that oil prices initially rose to $35.55 per barrel as the news of the 'secret meeting' hit the airwaves, but it finally settled at $34 as expectations for an immediate deal did not materialise. 

 

The rise in prices may not be good news for Nigeria, as the country may be forced to under-produce and renege on its 2016 targets. The 2016 Budget sets an optimistic oil production target of 2.2 million barrels per day, but its January production, according to the Organisation of Petroleum Exporting Countries (OPEC), was 1.9 million. 

 

Nigeria’s Minister of State for Petroleum Resources, Ibe Kachikwu, in an interview on Sunday, said Nigeria was looking at raising its production levels to 2.5 million barrels per day – a feat that may be impossible following these new revelations. 

 

It was gathered that for Nigeria to meet its budget expectations, it must produce 2.2 million barrels per day, and sell at a $38 per barrel. 

 

Saudi Arabian oil minister, Ali Al-Naimi, who spoke at a news conference in Doha, Qatar, said freezing oil producers’ output will be adequate to improve the oil market. 

 

"Freezing now at the January level is adequate for the market, we believe. We recognise today the supply is going down because of current prices. We also recognise that demand is on the rise.

"The reason we agree to a potential freeze of production is simply, it is the beginning of a process which we will assess in the next few months and decide if we need other steps to stabilise and improve the market. 

"This is very important, we don’t want significant gyrations in prices, we want to meet demand. We want a stable oil price."

 

Meanwhile, Venezuela’s oil minister, Eulogio Del Pino, said more talks would take place with Iran and Iraq on Wednesday, to get other producers on board.

 

 

Tori News

North Korea 'executed 15 people'

North Korean leader Kim Jong-un has ordered the execution of 15 people this year, including several top officials, South Korean intelligence says.

The agency told a parliamentary meeting on Wednesday that they were executed by firing squad on spying charges.

Those killed include two vice ministers who challenged Mr Kim over his policies and members of an orchestra, intelligence officials said.

Mr Kim purged and executed his once-powerful uncle for treachery in 2013.

'Showcase'

South Korean politicians were told that one of the officials killed was a forestry minister who had complained about North Korea's forestation plan, Yonhap news agency reported.

"Excuses or reasoning doesn't work for Kim Jong-un, and his style of rule is to push through everything," said Shin Kyung-min, a member of South Korea's parliamentary intelligence committee, quoting an intelligence official.

Analysis: Stephen Evans, BBC News, Seoul

From outside Pyongyang, it's impossible to know exactly what's going on in Kim Jong-un's inner circle.
The South Korean spy agency may have informants but it also relies on hit-or-miss methods like analysing photographs in the North Korean state-controlled media.

We do know that Mr Kim's uncle, Chang Song-thaek, was executed in 2013 because North Korean media reported it.

Last year, six important officials suddenly vanished from public view and South Korean media reported they had been executed.

If it is true that 15 senior people have been executed in the four months of this year - a rate of one a week - it would indicate that the regime is getting tougher.

Kim Jong-un has been in power for just over three years. He is as secure in his job as any dictator can be, but does he feel secure?

Mr Shin's office told Reuters news agency that the unnamed official had added that the executions were a "showcase" in response to what Mr Kim saw as a challenge to his authority.

Four members of North Korea's Unhasu Orchestra are also believed to have been executed in March.
Reports say that Mr Kim's wife, Ri Sol-ju was a singer in the orchestra before her marriage.

South Korean politician Lee Cheol-woo told Yonhap that the head of the orchestra had been executed, possibly for leaking family secrets.

There has been no confirmation from North Korea about the executions but Mr Kim has purged his opponents before.

In 2013, Mr Kim put his uncle, Chang Song-thaek, to death, along with a group of officials who had been close to him.

Mr Chang was seen as a mentor to Kim Jong-un during the leadership transition from his father Kim Jong-il in 2011.

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