Thursday, March 28, 2024

Oil crash may warrant production halt, says NNPC

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The Nigerian National Petroleum Corporation has says that Nigeria has not stopped producing crude oil but a persistent crash in oil prices may lead to a halt in production

Global oil price benchmark, amid the demand collapse caused by reduced economic activities, Brent, against which Nigeria’s crude oil is priced, fell by $6.34 to $19.23 per barrel.

Nigeria recently slashed the oil price benchmark for its budget to $30 per barrel from $57 per barrel, but oil prices kept crashing since the outbreak of coronavirus as demand plunged.

On whether Nigeria had stopped oil production due to the persistent price crash, the country’s national oil firm said it had not.

It was, however, quick to explain that this might happen should global crude oil prices maintain persistent downward plunge.