Tension among oil producing nations in the Gulf and the United States of America is affecting Ghana’s oil market, Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers Ghana (COPEC), has said.
He told TV3 that: “Anytime there is these escalations of tension between countries in the Gulf and the super power United States, what you see is that prices soar on the international market.
“Ghana being a price taker which only takes whatever price the world throws at us, these have quite significant implications for the local fuel market.
“We will keep our eyes there. We are quite mindful that there is a net effect on the Ghana market with these tensions.”
Oil prices were up on Monday, buoyed by hopes of progress in U.S.-China trade talks and supported by challenges to supply facing major exporters.
Brent crude rose 34 cents or 0.6% to $58.71 a barrel by 0840 GMT, while U.S. West Texas Intermediate (WTI) crude was at $53.16, up 35 cents or 0.7%.
Both futures contracts ended last week with a more than 5% decline after dismal manufacturing data from the United States and China, with the trade row between the world’s top economies undermining global economic prospects.
U.S. and Chinese officials meet in Washington on Oct. 10-11 in a fresh effort to work out a deal.
On the supply side, deadly anti-government unrest has gripped Iraq, the second-largest producer among the Organization of the Petroleum Exporting Countries.
Iraq’s oil exports of 3.43 million barrels per day (bpd) from Basra terminals could be disrupted if instability lasts for weeks, Ayham Kamel, Eurasia Group’s practice head for Middle East and North Africa, said in a note.
“Any oil production disruption would occur at a time when Saudi Arabia has lost a significant part of its energy system redundancies (spare capacity),” he said.