Gas crisis may increase oil prices by $10 —NNPC

Group managing director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, says the supply crisis affecting the natural gas market may push crude oil prices up by $10 a barrel.

In Nigeria, the price of cooking gas has recorded multiple increases in recent months which Kyari had attributed to under-supply. 

Similarly in Europe, high demand and reduced supply have also resulted in a surge in wholesale gas prices.

Brent crude, the grade at which Nigeria’s crude oil is benchmarked, traded above $75 on Wednesday.

On Wednesday, while speaking during an interview with Bloomberg TV, Kyari said that within the next three to six months, the current distortion in the market could lead to an increase in oil prices by at least $10.

Kyari hinged his argument for an increase in crude oil prices on the fact that the gas supply crisis will make energy consumers shift from gas to other fuels.

He added that demand for oil may climb by one million barrels per day.