Audio By Carbonatix
The Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), Dr. Riverson Oppong, has expressed optimism that easing tensions between Iran and the United States and a possible agreement could sustain the recent decline in global crude oil prices and push them below $80 per barrel.
Responding to a question on how confident the petroleum industry was that the reported diplomatic breakthrough would hold and keep prices on a downward path, Dr. Oppong said developments in the international market had given industry players reason to be hopeful.
"Regardless of whatever we have seen now with oil prices coming down, we are very optimistic about prices falling even below $80 under normal market conditions once these agreements are fully implemented," he said on Joy FM's Midday News.
Crude oil prices have dropped sharply this month, falling from about $110 per barrel to $97 per barrel, representing a decline of roughly 12%.
The decline has been attributed to weaker Chinese imports, record-high US oil exports and continued releases from strategic petroleum reserves by member countries of the International Energy Agency (IEA).
According to Dr. Oppong, crude oil prices have been declining over recent pricing windows, a trend that could continue if geopolitical tensions in the Middle East ease further and disruptions to global oil supply chains are resolved.
He noted that reports of compensation arrangements involving Iran, the United Arab Emirates and the United States, coupled with efforts to release vessels affected by regional tensions, were positive signals for the global energy market.
"If these developments continue and international shipping routes operate normally again, benchmark oil prices are likely to decline further, which will eventually be reflected in fuel prices at the pumps," he stated on June 15.
The COMAC CEO said lower crude oil prices would bring relief to consumers and businesses, particularly in countries such as Ghana, where fuel costs significantly influence transportation and general living expenses.
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