• About Us
  • Home
Wednesday, July 2, 2025
Shaka Momodu
  • Right Of Reply
  • News
  • Politics
  • Business
  • OpEds
  • Sports
No Result
View All Result
  • Right Of Reply
  • News
  • Politics
  • Business
  • OpEds
  • Sports
No Result
View All Result
Shaka Momodu
Home Business

How Voluntary Crude Oil Production Cuts By OPEC Members Could Spike Petrol Prices in Nigeria

by News Reporters
2 years ago
in Business, News
0 0
0
How Voluntary Crude Oil Production Cuts By OPEC Members Could Spike Petrol Prices in Nigeria
Share on FacebookShare on Twitter

There are concerns that the price of petrol in Nigeria may increase as some members of the Organization of Petroleum Exporting Countries (OPEC) continue their voluntary crude oil production cuts into August to stabilize the international price of oil.

Crude oil prices heavily influence petrol prices worldwide, accounting for up to 80% of the product’s cost. As of yesterday, Brent, Nigeria’s oil benchmark, was priced at $76.72 per barrel, while US oil (WTI crude) was selling for $71.88 per barrel.

Saudi Arabia, the de facto leader of OPEC and the largest crude exporter globally, is reportedly dissatisfied with current prices and has decided to reduce its crude production. Russia and Algeria have also volunteered to lower their August output and export levels. These production cuts by OPEC members could contribute to a rise in petrol prices in Nigeria.

Nigeria, which recently removed petrol subsidies, relies on imports due to its dilapidated refineries, subjecting the country to market volatility. Aside from the price of crude oil, other factors influencing petrol prices include refining costs, shipping costs, distribution and marketing costs, as well as taxes and levies imposed by Nigeria.

The International Monetary Fund (IMF) has stated that Saudi Arabia would need oil prices to reach $80.90 per barrel to balance its budget this year. The Nigerian National Petroleum Company Limited (NNPC) CEO, Mele Kyari, previously mentioned that Nigeria would be comfortable with $50 oil to retain customers and encourage the adoption of renewable energy.

Given the direct relationship between international crude oil prices and petrol prices in Nigeria, an increase in oil prices could lead to a rise in petrol prices within the country.

During the ongoing OPEC International Seminar in Vienna, OPEC Secretary General Haitham Al-Ghais emphasized the importance of oil for the planet and the need for sustainability. He reiterated OPEC’s commitment to working on market stability and reducing greenhouse gas emissions.

Al-Ghais acknowledged that renewable energy sources alone are insufficient to meet climate goals and advocated for multiple pathways to achieve sustainability. Nigeria recently pledged to meet the Paris Agreement’s goals of limiting global temperature increase to 1.5 degrees Celsius above pre-industrial levels by 2060.

Antonio Oburu Ondo, President of the OPEC Conference in 2023 and Equatorial Guinea’s Minister of Mines and Hydrocarbons, also highlighted the significance of oil in the world’s energy mix, stating that the world cannot function without it.

OPEC has been working to maintain stable oil production and prices, pumping an average of 28.57 million barrels per day in June. However, oil prices have experienced a decline of about 12% so far in 2023 due to a slow post-pandemic recovery in China and concerns about rising interest rates triggering a global recession.

Previous Post

NUPRC and NMDPRA Conflict: Why President Tinubu Signed Memo to Ensure Compliance and Clarity

Next Post

How The Choice of Senate Minority Leadership Exposed PDP’s Weakening and Disarray

Next Post
Elections Bribe: Two PDP Chieftains Jailed

How The Choice of Senate Minority Leadership Exposed PDP's Weakening and Disarray

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RSS Some News Around

  • Forget What People Will Say And Join The Coalition, Deji Adeyanju Tells Omoyele Sowore
  • Tinubu, Atiku Are Good Friends, They May Be Visiting Each Other at Night, Orji Uzor Kalu Says
  • INEC Drafting New Guidelines for Reviewing Declared Election Results, Says Mahmood Yakubu
  • Tinubu Approves Scholarship Scheme for Caribbean Students to Study in Nigeria
  • Edo: Gov Okpebholo Launches Bold Rural Healthcare Initiative
  • Land Administration: CSO Lauds Wike’s ‘Outstanding Performance in Office, Clears Minister of Any Wrongdoing’
  • Gov Okpebholo Extends ‘Warm Birthday Wishes to Dr Pius Odubu’
  • Poly Ibadan Students Protest Renaming to ‘Olunloyo Poly’, Shut Down Campus Gates
  • Kwara Youths Burn NDLEA Office During Protest over Insecurity
  • APC Crisis: Ganduje Took Bullets for Tinubu By Resigning, Dele Momodu
  • About Us
  • Home

© 2022 THIS REPUBLIC By Shaka Momodu

No Result
View All Result
  • Right Of Reply
  • News
  • Politics
  • Business
  • OpEds
  • Sports

© 2022 THIS REPUBLIC By Shaka Momodu

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Go to mobile version