BREAKING: No Increase In Fuel Price Until Negotiations With Labour Is Concluded-NNPC

…Crude Oil Hits $64 Per Barrel

The Nigerian National Petroleum Corporation has said that there will be no increment in fuel fuel price until it concludes negotiations with organised labour.

Kennie Obateru, Group General Manager, Group Public Affairs Division of NNPC, disclosed this in a statement on Friday saying it would maintain its current ex-depot price of N162 per litre.

The state owned corporation said this after its Group Managing Director, Mele  Kyari, admitted that the Nigeria can no longer hold the pressure induced by subsidy.

Oil prices have surged 5.3 per cent to $64 per barrel on Friday following the stuck container vessel in the Suez Canal, which has blocked the flow of goods through the narrow channel.

The canal, an international shipping passage was blocked after a Japanese-owned 200,000 tonne container ship en route from China to Europe has been grounded in the canal for days.

The quarter-mile-long vessel  has blocked over a 100 vessels.

THE WHISTLER observed that Brent Crude price rose from $60.75 per barrel on Tuesday to over $64 on Friday due to the impact on global shipment.

WTI Crude is also trading 5.7 per cent up to $60.79 a barrel from $57.5 sold on Tuesday.

The development underscores the importance of the canal in global shipment according to analysts.

The vital canal located in Egypt and connects Port Said on the Mediterranean Sea to the Indian Ocean via the southern Egyptian city of Suez on the Red Sea.

It is also the shortest route between Europe and Asia, but the 400-metres long Ever Given container vessel stocked at the canal on Tuesday.

The canal is also a preferred route for shipment to the United States, said Moody’s Investors Service.

About 30 per cent of global container traffic flows through the canal annually . 

Moody’s Investors Service said on Friday that the affected route could affect 10 per cent to 15 per cent of world container throughput if the blockage persists.

With the blockade, it will take additional 7 to 10 days for ships that will resort to take longer routes around the Cape of Good Hope in South Africa.

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