The Global Oil Market and Nigeria’s Response

By The Atlantic Council
Published June 24, 2020 | 1 min read

COVID-19 has disrupted both oil markets and supply chains. National oil companies are left struggling to meet supply and demand, and the resulting impact to national budgets is not insignificant. On Friday, June 12, the Atlantic Council hosted a fireside chat with Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation, moderated by RBC’s Helima Croft, Managing Director and Global Head of Commodity Strategy and MENA Research, where they discuss the pressures being faced.

Disclosures and Disclaimers

As Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari has been responsible for guiding Nigeria’s national oil company through the severe volatility fueled by the COVID-19 pandemic and oil supply negotiations. Mr. Kyari is also the Nigerian National Representative at OPEC.

In this virtual fireside chat with Helima Croft, Mr. Kyari discusses recent decisions made at the June 6 OPEC meetings, as well as the NNPC’s broader efforts to diversify its investments to the healthcare, housing, and power sectors.

OPEC’s JMMC meeting on June 18 ended without any recommendation on the extension of the current production cuts, as Saudi Arabia continues to press compliance-challenged producers to swiftly reach full conformity with the agreement.

Mr. Kyari explains that his country is absolutely committed to reaching full conformity. He also suggests that it may not be necessary to roll over the April agreement for another month, and that tapering could conceivably commence as planned on August 1 because of the additional adjustments that the underperformers would make over the next three months.

For more information and insights, watch the full fireside chat.