Oil Crash May Stop Oil Production , Says NNPC

On Tuesday, 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 has not stopped producing crude oil but a persistent crash in oil prices may lead to a halt in production , the Nigerian National Petroleum Corporation has declared .

On Tuesday , 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 .

The Group General Manager , Group Public Affairs Department , NNPC , Kennie Obateru , told our correspondent on Wednesday that oil production had not stopped.
He said , “ If the situation persists , it is something that is bound to happen definitely .

“ We can ’ t keep producing if there is no market to sell to . And it is not something that is peculiar to Nigeria . It is a global thing . ”
He added , “ However , it has not happened . For as much as I know and up till this morning , nothing of such has happened . ”
Obateru called for optimism among Nigerians , stressing that before any halt in oil production , stakeholders would have to meet to decide on the best way forward.

He said , “ We should be positive and hope that things improve. But again , if the situation persists , definitely I think it will come to that .
“ However , if it is being considered , then they will have to work out the moralities.