Despite the optimism in some quarters about crude oil demand for Nigeria, the Group Managing Director, (GMD), of the Nigerian National Petroleum Corporation, (NNPC), Mele Kyari, has said he does not see oil demand recovering to pre-Covid19 levels before the end of 2022.
Mele Kyari made this known on Wednesday, while speaking at a virtual event, the Gulf Intelligence “Global UAE Energy Forum 2021“. The NNPC however expressed cautious optimism about oil demand growth, adding that it had begun the process to diversify its portfolio beyond oil assets to hedge future crisis and align with global energy transition.
The oil firm noted that the country’s huge unharnessed gas resources as well as condensate could provide additional revenue that will address shortfall in the 2021 budget.
Even though oil prices are now at 11-month high, coronavirus-inspired lockdowns continue to drag on any hopes of an oil demand rebound, dampening oil price gains. The GMD also said gas would provide a more stable revenue for Nigeria.
Oil prices maintained a rally yesterday, as Brent Crude rose by 0.19 percent to $56.69 while Nigeria’s Bonny Light was up by 0.05 percent, to $54.94 a barrel.
