The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has said it would not be possible for the price of crude oil to rise to $100 per barrel in 2018 as the current market conditions did not support such expectations.
Speaking to some reporters recently in Abuja, Kachikwu, predicted that at most, oil prices could settle at $60 per barrel.
He explained that already, more countries were beginning to cut down their dependence on fossil fuels as the main fuel source to power their economies.
He, however, noted that the industry could experience better market conditions towards the last quarters of 2018.
“Everything all added up together is showing us that towards the last quarter of 2018, we expect a better market. Does that better market translate to your $100 price? Never! I don’t see it, frankly I don’t see it,” Kachikwu said.
“It’s going to take a major calamity. Largely because on the back of all these, countries are racing away from oil. If Europe is saying: ‘in five years’ time, we are going to exit oil cars to electric cars,’ oil, therefore, is getting its last years, except for those who produce and use it for local consumption because they’re moving slowly away from it but in terms of an income resource, you can begin to count the years in your hands. In 10 years’ time, I’d be very surprised if any country that hasn’t diversified enough is counting really seriously on oil,” the minister explained.