Oil Price Drop Linked to Strategic Reserves as Experts Call for Clarity on TOR Operations
Energy analyst Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy, has attributed the recent drop in crude oil prices to strategic interventions by major oil-holding countries.
In a zoom interview with Kojo Preko Dankwa on Kessben Maakye today, he asserted , three key factors have contributed to the decline in global crude oil prices, particularly the decision by countries that maintain large strategic reserves to release some of their stored oil onto the market when shortages are anticipated.
He explained that oil-producing nations often keep strategic stockpiles to stabilize supply and prices. When there is a projected shortfall, especially in regions like Asia, these countries release portions of their reserves to cushion the market.
Mr. Nsiah further noted that ongoing geopolitical discussions are also influencing the oil market. He indicated that conversations between Donald Trump and leadership in Russia had some levels of conversation to salvage any possible oil shortages.
However he argued that, Iranians are also seeking their strategic interests within that sub-region and would not allow any American or Israeli cargo nor any of their associates to transport crude from their enclave.
He said the sustainability of the current market stability will depend on developments in the coming days, particularly whether there will be continued military actions or disruptions that could affect oil supply routes.
Another key factor, he explained, is whether petroleum products can continue to pass smoothly through the Strait of Hormuz, one of the world’s most critical oil transit routes.
Touching on Ghana’s domestic energy sector, Mr. Nsiah addressed concerns surrounding the operations of the Tema Oil Refinery. He commended the refinery’s current management, saying it is performing significantly well.
He clarified that the refinery does not currently refine its own crude but processes petroleum products for other entities, generating revenue through such arrangements.
Mr. Nsiah also addressed claims that the refinery does not meet required standards, describing such assertions as misleading.
According to him, there appears to be some level of misunderstanding or conflict between central government authorities and the refinery’s operations, saying it is incumbent on National Petroleum Authority to divert part of its lifted crude to Tema Oil Refinery, TOR , to refine for that is the core mandate of the entity.
He therefore urged Members of Parliament to thoroughly consider Ghana’s energy security as “classified information” irrespective of their political differences.
He also admonished the government to provide the public with clear and accurate information regarding the status and role of the Tema Oil Refinery in the country’s petroleum sector
Story: Maurice Otoo
