Yemisi Izuora/Ijeoma Agudosi
The Nigerian National Petroleum Corporation (NNPC), has expressed hope that oil price may inch up to about $38 per barrel.
The oil firm is confident that the oil benchmark of $38 is realisable by April as projections suggest that prices will go above the benchmark then.
This contradicts other projections that the prices could fall below $20 and could stay there for several years.
The Group Executive Director, Finance, NNPC, Isiaka Abdulrazak, told Senate Committee on Finance in Abuja that based on projections derived from economic activities across the globe, oil prices would not go below 40 dollars per barrel before the end of 2016.
“The winter in the Northern Hemisphere has been very aggressive this year which is good news for us because it is also helping with the oil price.
“By our projection and the analysis done by international analysts, the oil price should go back to well above 38 dollars per barrel.
“Toward the end of the year, the most conservative projection for the end of the year is that the price will not go below 40 dollars per barrel.
“So, we are confident that the current price of 38 dollars per barrel is attainable and sustainable from the budget”, he said.
Abdulrazak explained that the economic growth of India and the growth expectations of other economies also suggested that the demand for oil would also increase.
He expressed optimism that the tempo in oil and gas production would be maintained if security situation in the region was maintained.