BEVERLY HILLS, April 21, (THEWILL) – The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has stated that the slump in the U.S. 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.
On Monday, the U.S. crude oil price dropped to its worst level since New York Mercantile Exchange (NYMEX) opened oil futures trading in 1983 and was a few days after Nigeria’s benchmark crude oil grade, Bonny Light, slumped to an average $12-$13 per barrel.
This heightened apprehension about Nigeria abandoning oil production amid declining prices.
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However, the GMD of NNPC has said Nigeria has no cause to be apprehensive over the current situation as the US $0 price has no capacity to impact Nigeria’s oil production.
He said the situation, which reflects 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 on Tuesday.
On whether the current situation has any impact on Nigeria’s oil production, he said that is a different issue, pointing out that oil production is usually a factor of the availability of the market for the product.
