Oke: OPEC+ unlikely to tweak oil output policy
Oyeyemi Oke, Partner at A02 Law says OPEC+ is unlikely to tweak its oil output policy at Friday’s Joint Ministerial Monitoring Committee meeting. Meanwhile, he opines Fitch’s U.S. ratings downgrade may not significantly offset global oil prices despite current dips.
Thu, 03 Aug 2023 14:51:43 GMT
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AI Generated Summary
- The likelihood of OPEC making adjustments to its oil output policy at the upcoming meeting is low, with forecasts indicating stable oil prices around $90 a barrel for the latter part of 2022.
- Higher oil prices could benefit Nigeria's revenue if accompanied by increased production, but consumers may face elevated costs for refined products due to price dynamics.
- The government's drive to revitalize refineries, including the Port Harcourt refinery, is influenced by the need to address rising fuel costs post-subsidy removal and consumer concerns over pricing.
Oyeyemi Oke, a Partner at A02 Law, recently shared insights on the future of Nigeria's oil output policy and the ongoing refinery rehabilitation projects in the country. In an interview with CNBC Africa, Oke discussed the likelihood of OPEC making adjustments to its oil output policy at the upcoming Joint Ministerial Monitoring Committee meeting. He noted that despite expectations of a rally in oil prices earlier in the year, current forecasts suggest that prices may hover around $90 a barrel for the remainder of 2022. Oke highlighted Saudi Arabia's commitment to production cuts and indicated that sustained demand could potentially keep prices stable in the near term. From a national perspective, higher oil prices could benefit Nigeria's revenue if accompanied by increased production. However, Oke pointed out that consumers may face higher costs for refined products due to the correlation between crude oil prices and end-product pricing. Turning to the topic of refinery rehabilitation, Oke addressed President Buhari's statement regarding the Port Harcourt refinery's expected completion by year-end. While acknowledging the shifting timelines for refinery projects in the past, Oke suggested that the government's push to revitalize refineries may be driven by the need to mitigate rising fuel costs following subsidy removal. He emphasized the pressure on the government to deliver on refinery rehabilitation amid consumer concerns over fuel pricing. Overall, Oke's insights shed light on the complex dynamics influencing Nigeria's oil industry and the challenges and opportunities that lie ahead.
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