Energy sector players have urged the National Petroleum Authority (NPA) to develop workable plans that will ensure the reflection of benefits from the anticipated drop in oil prices in 2025.
This comes amidst predictions from leading global investment bank, Citi Group indicating that oil prices will experience a decline from $85 to $60 per barrel next year.
Media reports indicate that early on Friday, the international benchmark Brent Crude traded above $85 per barrel, while the U.S. benchmark WTI Crude stood above $82 per barrel, driven by supply-demand imbalances in the oil market.
Although oil demand is expected to remain strong in the third quarter of the year, concerns exist that growth may continue further in the fourth quarter, leading to a decline in prices.
Citi Group’s latest forecast suggests oil prices could drop into the $70s range later this year, with further decreases to the $60s range in 2025 due to sufficient stock accumulation.
Energy sector stakeholders believe these developments will positively impact African countries, including Ghana.
In an interview with Citi Business News, Energy Strategist Dr. Yusif Sulemana emphasised the importance for the NPA to formulate effective plans to ensure these benefits are fully realized.
“Consumers struggle to take advantage of that because I believe the right policies have not been put in place to be able to create the right environment for consumers to benefit, we need to be able to have a workable plan, to be able to cascade benefits when required”, he said.
Dr. Sulemana added: “When oil prices are going up, the benefits we should be able to have some way of cushioning the downstream and when the oil prices are coming down, also the regulator must ensure that the market is fair enough to let it reflect within the market. So if that should happen, and we are able to balance much of our upstream and downstream to let us support each other.”
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