The development, which kept the oil price at about $84 per barrel, yesterday, is expected to increase the oil price to $100 per barrel, thereby compounding the current global energy crisis with the inflationary implications.
The funding, though significantly higher than the $370 billion low recorded in 2020, upstream analysts at Wood Mackenzie, Fraser McKay and Ian Thom, said much would still be needed to balance supply in the market. According to them, restraint could lead to a tighter supply chain than the industry has been used to. In Nigeria, the development is worsened by continuous divestment in the industry. Although the country conducted a bid round last year, most international companies are holding back their capital as Nigeria has repeatedly failed to meet its three million barrels daily target.