By Princely Onyenwe, Abuja
It is regrettable to note that the war between Russia and Ukraine has cost alot of damages in the oil sector where price of Nigerian crude has automatically dropped by more than 30%.
However the global oil benchmark Brent crude has risen above 5% to trade at 102.27 dollars per barrel.
Our source revealed that West texas intermediate a corresponding incredible increase of over 5% at 97.06 per barrel.
Recall that Thursday 24-02-2022 PRESIDENT Putin made a television broadcast where he stated the Russia will not tolerate threats from Ukraine and few minutes later the war broke out.
Ukraine capital Kjiv was seriously attacked by Russian missiles causing alot of tension all over the globe.
Markets were closed down together with schools and government offices as gathered.
Our source stated that this may be a premeditated war by Russian Government against Ukraine leading to lose of lives and properties worth billions of Euro.
This shock in rise of oil to 102 Dollars per barrel is said to be the first time in the history benchmark Brent crude is rising above 100 Dollars since September 2014.
The federal government has expressed concern over the sudden rise of oil price in the international market stating that the increase in oil price is not favourable to Nigerian Crude.
Minister of state for Petroleum resources, Timipre Sylva hinted that Nigeria comfort zone in terms of oil price was between 70 & 80 Dollars per barrel.
Sylva revealed that Nigerian benchmark has hit 99.03 Dollars per barrel, the highest in the last nine years.
It is Hopeful that the price will regulate between 70 & 80 Dollars per barrel which he said will be sustainable for NIGERIA to the end of the year otherwise the country is at high risk of dangerous hike.
The minister blamed the Government which he is a part of the challenge being faced on their inability to activate the oil wells it shut down when OPEC instructed Producing countries to cut production as well as lack of investment in the upstream sector for the country’s inability to increase production.
He also opened up more secrets behind the challenges bedevilling NIGERIA’s crude stating that the country is loosing up to 300,000 bpd to this sudden uprising caused by Russian/ Ukraine war.
It is now that the country is provoked to start planning for alternative measure incase such mishap occur in the near future.
The Government reiterated the immediate need to float an African Energy Bank to curb the continent’s over dependence on Europe, Asia and America for finding.
With the advent of Petroleum Industry Act (PIA) which has made investment more attractive, Federal Government have to dialogue with the oil companies and the multinationals operating in the country to double efforts to invest more.
NIGERIA local Refineries have to be well positioned to good use for immediate operations to help curb scarcity of oil.
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