₦airaland Forum

Any report that global crude oil demand may collapse soon is not realistic, especially with increasing economic growth in Africa and the reopening of the Chinese economy, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mallam Mele Kyari, has predicted.

China’s eventual reopening and slow crude supply growth means the global oil market would be in shortage, Kyari who also serves on Nigeria’s Organisation of Petroleum Exporting Countries (OPEC) delegation, said during a webinar, according to a report by S&P Global Commodity Insights.

OPEC and its allies, including Russia, opted to slash production quota by two million barrels per day (bpd), from November through the end of 2023, in anticipation of slowing demand and the prospect of recessions in key economies.

The decision was despite the European Union’s plan to impose an embargo on imports of Russian crude from December and refined products from February.

“I do not see how this demand will collapse because countries are coming back. China is recovering from COVID-19 and a number of countries, particularly sub-Saharan African countries, are growing.

“These economies are growing very, very fast against all odds. That means more consumption,” Kyari said.

The OPEC+ alliance reaffirmed the decision at its December meeting and a nine-country monitoring committee, on which Nigeria sits, will convene February 1, to review market conditions and, if needed, recommend any changes to production volumes.

https://www.thisdaylive.com/index.php/2023/01/16/kyari-foresees-sustained-rise-in-oil-demand-with-economic-growth-in-africa-reopening-in-china/

The oil is blessing to other countries but a curse to Nigeria. They use inexistent subsidy to siphon every kobo that comes from oil and yet borrow to run the economy. Adeosun was removed from the seat as the finance minister just because she demanded for the comprehensive monthly account report of NNPC before accepting the remittance. With the petroleum subsidy being paid by the government, Nigerians are supposed to be receiving PMS free of charge.

Dreal1247:
The oil is blessing to other countries but a curse to Nigeria. They use inexistent subsidy to siphon every kobo that comes from oil and yet borrow to run the economy. Adeosun was removed from the seat as the finance minister just because she demanded for the comprehensive monthly account report of NNPC before accepting the remittance. With the petroleum subsidy being paid by the government, Nigerians are supposed to be receiving PMS free of charge.

Nigeria's oil should be put to good use for the benefit of local people. There's still a long way to go.