No cause for apprehension over US $0 oil price, NNPC assures

…Says it has no capacity to impact Nigeria’s oil production

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has told Nigerians not to be apprehensive over the slump in the US crude oil below $0 per barrel.

According to the NNPC boss, the development has no capacity to impact Nigeria’s oil production.

Kyari, who explained that the drop is not a reflection of reality in the global oil market, added that it will not have any negative effect Nigeria’s oil production.

He said that the situation, which reflects the current position in the US 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.

“Usually, the spread between OPEC price and the other prices vary by about $8 to $9. When that is deducted from the prevailing price, we have the real price in the market.

“However, today, Brent is about $28 per barrel. If $8 or $9 is deducted, we will know what the real price is today.

“But, it’s really nothing for us (Nigeria) to worry about at all. Like I said the other day, the market will still change and rebound after the OPEC output cut.

“We will have to wait and see what is going to happen. It is just the close of the market month,” he said.

He debunked reports that Nigeria has shut in its oil production as a result of the current situation, adding that the recent decision of the OPEC+ on output cut would take effect in May and June.

READ ALSO: Sultan asks muslims to search for Ramadan crescent on Thursday

Ìt could be recalled that the US had announced on Monday that crude oil price dropped to its worst level since New York Mercantile Exchange (NYMEX) opened oil futures trading in 1983.

The announcement comes few days after Nigeria’s benchmark crude oil grade, Bonny Light, slumped to an average $12-$13 per barrel, heightened apprehension about Nigeria abandoning oil production amid declining prices.

Despite the recent intervention by the Organisation of Petroleum Exporting Countries (OPEC) and its allies, led by Russia, to cut global crude oil, no significant improvement has emerged in the oil market.