Rising crude oil prices a blessing in disguise for Ghana – Bawa

The increase in crude oil prices on the international market due to the geopolitical tension between Russia and Ukraine may benefit Ghana, Bongo Member of Parliament Edward Bawa has said.

In his view, the situation is a blessing in disguise for Ghana because the country is also an oil-producing nation.

“You and I know that obviously Ukraine would have definitely had an effect on us but before Ukraine’s invasion there were was an increase in petroleum prices in Ghana.

“We are in the winter period and the demand for hydrocarbons in Europe and America were very high so, we were already in the ascending form, so that cannot be the case.

“Ukraine may have aggravated the situation but I am saying, in that particular state it is a blessing in disguise. While we complain about the prices in the local level, we are also always smiling to the bank because of the moneys we get from selling [crude oil] products. So it is a win-win in my opinion,” he told journalists in Parliament on Thursday March 10.

Oil prices rose on Thursday following a sharp drop in the previous session as the market contemplated whether major producers would boost supply to help plug the gap in output from Russia due to sanctions for its invasion of Ukraine, the Economic Times reported.

Brent crude futures were up $3.10, or 2.8%, at $114.24 a barrel at 0419 GMT after trading in a more than $5 range. The benchmark contract slumped 13% in the previous session in its biggest one-day drop in nearly two years.

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U.S. West Texas Intermediate (WTI) crude futures were up $1.58, or 1.5%, at $110.28 a barrel, after trading in a more than $4 range. The contract had tumbled 12.5% in the previous session in the biggest daily decline since November.

On the domestic front, Mr Edward Bawa asked the government to act immediately to resolve the high fuel prices at the pumps in the country.

“Let us be honest, if the government does not do anything and the next window, which is on the 16th of March, there is going to be an increase in fuel prices,” he said.

By Laud Nartey|3news.com|Ghana