The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, says 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.
Last Monday, the U.S. crude oil price dropped to its worst level since New York Mercantile Exchange (NYMEX) opened oil futures trading in 1983.
Kyari 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.
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“That is not real crude oil price. That is the traders’ paper figure just showing the detail at the close of their business for the month. You would have observed that it has changed this morning (Tuesday). This is because they are not sure of the storage facilities for their stock of products they have.
“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.
“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. But, today, Brent is about $28 per barrel. If $8 or $9 is deducted, we will know what the real price is today”, he said.
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