Paa Kwesi Anamuah Sakyi, Executive Director for the Institute of Energy Security (IES), has actually said oil producers in Ghana would need to close down or they also have to be prepared to sell at a lower expense, due to the COVID-19.
Internationally, the oil industry is saddled with an unexpected absence of demand due to the Coronavirus economic slowdown.
According to the Financial Times, the slide in oil rates continued apace on Wednesday, with Brent unrefined dropping to levels not seen in more than 20 years as issues over the economic effect of the coronavirus pandemic hit international markets.
The worldwide oil market fell as much as 17 percent in Asian trade to $15.98 a barrel– its floor given that mid-1999– before recovering somewhat to relax $17 as markets opened in Europe.
Rates are down by about 40 percent today. The decrease in Brent follows a plunge in the price of the US marker West Texas Intermediate, which earlier this week fell into a negative area for the very first time as the spread of COVID-19 pummelled need for crude and produced an international oil glut Discussing this, Mr. Anamuah Sakyi stated: “We are certain that within the next couple of days it will remedy itself since the May contract coming forward will be positive and above $50 per barrel.
“I do not see much concern because of the remarkable case in the United States. However, we likewise saw Brent crude tumble by more than 8% today. It means that if we don’t stop production or production across the globe is not curbed, then we will see more of excess supply.
“That means, the Brent mark that Ghana offers their products will likewise fall and that will indicate that either all the oil producers in Ghana would need to close down or they also have to be prepared to sell at a lower cost; which likewise implies that no earnings for, not simply the oil producers but for Ghana,” he told Citi Fm.