The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has disclosed the impact the drone attack on Saudi Arabian refinery, Saudi Aramco, which knocked out five percent of the global oil supply in the second week of September 2019, have on the global oil market.
The drone attack had occurred on September 14, 2019. It affected more than half of Saudi Arabia’s output. According to report, the blast on the top global exporter’s refinery cost the world about 5.7 million barrels per day.
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Kyari, who represented Nigeria at this year’s 9th Gulf Intelligence Energy Markets Forum at the United Arab Emirates (UAE), said the attack was surprising. According to him, despite the unexpected attack, the blast didn’t cause a major damage to the oil market.
He made this known while reacting to a question on where Brent crude oil prices are going to be at the end of the year. Kyari told the conference participants which included local and international oil traders, refiners, ports and ship owners, that the attack didn’t have a severe impact, “$60-$65 is the overall concensus.”
Adding that “Supply & Demand is more predictable now than it was in the past. Saudi Aramco attacks were a shock, but the market reaction was mild” Kyari was quoted in a Tweet he retweeted on Twitter. The theme for this year’s forum was, IMO 2020: Megatrends and the Energy Transition. NNPC stated that Kyari and other participants had gathered to discuss major issues towards accelerating alignment across the entire maritime value chain and making IMO 2020 compliance a reality.
Where are Brent crude oil prices going to be at the end of the year?
"$60-$65 is the overall concensus."
"Supply & Demand is more predictable now than it was in the past. Saudi Aramco attacks were a shock, but the market reaction was mild"~ @MKKyari GMD @NNPCgroup #Oil #giforum pic.twitter.com/5AyY0TvZIX
— Abba Audu Benisheikh (@AbbaAudu01) October 1, 2019
emissions in international waters are expected to be slashed by 80%, and the marine sector is expected to achieve this by switching to lower sulphur fuels according to the International Maritime Organisation (IMO).
While speaking on the IMO target during his feature interview at the forum, Kyari said, “Nigeria sees a big opportunity for its crudes in the new world of lower sulfur marine fuels, from January onwards”, adding that “Our crudes are, let’s call them, IMO compliant.”
"??Nigeria sees a big opportunity for its crudes in the new world of lower sulfur marine fuels, from January onwards", according to @NNPCgroup GMD, @MKKyari. “Our crudes are, let’s call them, IMO compliant.” @gulf_intel Energy Markets Forum in Fujairah. pic.twitter.com/Jbi3h3NSSn
— Abba Audu Benisheikh (@AbbaAudu01) October 1, 2019
