NNPC boss, Mele Kyari, says drop in US oil price should not bother Nigeria
- Mele Kyari, the group managing director of the NNPC, has said the slump in the US crude oil futures below $0 per barrel will not impact Nigeria
- GMD stated that Nigeria had no reason to be apprehensive over the slump in the price of US crude oil
- Kyari said the current position in the US market, does not have any direct impact on the price of the Brent crude oil blend
Mele Kyari, the group managing director of the NNPC, has said the slump in the US crude oil futures below $0 per barrel is not a reflection of the reality in the global oil market capable of impacting Nigeria’s oil production.
GMD of NNPC who spoke with told Premium Times on Tuesday, April 21, stated that Nigeria has no cause to be apprehensive.
He said the current position in the U.S market, does not have any direct impact on the price of the Brent crude oil blend, which rose to about $28 per barrel before dropping to the current price of to $26.24 a barrel.
Kyari stated that Nigeria’s oil production was not impacted by the current US situation, noting that out that oil production is usually a factor of the availability of the market for the product.
He explained that now that there is a drastic drop in the price of crude oil at the internal oil market, there is the problem of storage facilities, which is why traders have taken that position to show inactivity.
PAY ATTENTION: Install our latest app for Android, read the best news on Nigeria’s #1 news app
Earlier Legit.ng had reported that US oil prices plunged, falling below $0 on Monday, April 20 to $-37.63 a barrel.
It is the lowest level since oil futures trading began in 1983 as the economic crisis set off by the coronavirus pandemic continues to take a toll on the energy sector.
Al Jazeera reports that oil prices were under pressure as the measures to curb the spread of the virus saw fuel demand evaporate.
COVID-19 lockdown: Pay relief funds to households, unemployed Nigerians through BVN - Tinubu advises FG
That means oil producers are paying buyers to take the commodity off their hands over fears that storage capacity could run out in May 2020.
The price collapse in US oil market - known in the industry as the West Texas Intermediate price - accelerated because it is the last day oil producers can trade barrels that are scheduled for delivery next month when oil storage is expected to reach capacity.
NAIJ.com (naija.ng) -> Legit.ng: Same great journalism, upgraded for better service!
Coronavirus: 5 ways Nigeria is handling COVID-19 | Legit TV