The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu has revealed that despite the rise in crude price due to product cut announced by the Organisation of Petroleum Exporting Countries (OPEC) Nigeria may not benefit from the deal except the commodity’s prices rises above $54 per barrel, Leadership reports.
The minister said the healthy price of crude for Nigeria would be in the mid-$50s “As for Nigeria, a healthy oil price would be mid-50s: 54, 55, 56; I mean, if we have a Santa Claus day, then 60. But frankly, looking more to mid-50s,” he said.
The minister also expressed his worries about a surge of Shale oil production. He said; “Apart from the OPEC cut, I am worried that when we make a cut and get the normal price there is the possibility of shale production limping up again. So how do we converge everyone producing oil? I believe that until we get Russia, US producers and some understanding with the consumers, we might not get a solution.”