Nigeria Needs New Export Markets as UAE's Exit Rattles OPEC
Nigeria Needs New Export Markets as UAE's Exit Rattles OPEC Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.
Nigeria should market its crude oil to new buyers as the UAE’s decision to leave OPEC is dislocating the balance that the cartel and the OPEC+ group have been seeking for years, according to Wole Ogunsanya, chairman of the Petroleum Technology Association of Nigeria (PETAN).
The official urged Nigeria’s state oil and gas firm NNPC and other producers of Nigerian crude to tap new markets.
“When OPEC gives you a quota, it’s left for you to find who is going to buy it,” Nigerian outlet This DayquotedOgunsanya as saying.
“And we have one of the best crude oil in the world.
So we need NNPC and all producers to market Nigerian production,” the official added.
The abrupt exit of the United Arab Emirates from OPEC and OPEC+ would disrupt the balance the groups have been keeping for years, according to Ogunsanya.
“The decision by the UAE, which they have a sovereign right to do, is for their country’s interest.
Our opinion is that it’s going to cause a dislocation of that equilibrium, the ability of OPEC and OPEC+, to manage the price of oil,” he added.
The UAEquit OPECeffective May 1 to pursue its national interests after years of quarreling with fellow cartel members over output quotas and their share of total production capacity.
For years, the UAE has been working to boost its crude oil production capacity to 5 million barrels per day (bpd) by 2027.
The UAE insisted that it should be allowed in the OPEC and OPEC+ production deals to actually use more of its growing spare capacity.
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