By Ismail Auwal
The Minister of State for Petroleum Resources, Timipre Sylva, has cried out that Nigeria would move away from its comfort zone as the global oil price has surpassed $105 per barrel.
The Nigerian government said that it would spend up to N3 trillion in 2022 to make up for the PMS price shortfall.
High oil prices imply high subsidy payments in Nigeria.
Global oil prices have risen amid fears that Russia’s invasion of Ukraine will cause supply disruptions in the global oil market.
OPEC+ will meet on Wednesday to discuss monthly oil output amid the Russia-Ukraine conflict.
Tamas Varga, an analyst at PVM Oil Associates, told Reuters: “OPEC will likely stick to its original plan of a monthly 400,000 bpd increase, which will not alleviate fears”.
“The U.S. is coordinating an additional SPR (strategic petroleum reserve) release, and today, the IEA’s extraordinary meeting should also address the issue of energy security. These might provide short-term relief.”
