In an interview with Channels TV on Wednesday, Mele Kyari, NNPC group managing director, described the market situation as “bad but improving”.
He expressed optimism that the crude oil market will recover, citing an upward movement in prices after it fell to $15.
The global demand for oil has dropped after the coronavirus outbreak caused a closure of industries in China, India and Europe.
“Well, it is doing badly but it is improving. Last week, it went down to close to $15 per barrel but as I speak this morning, we are at $32.79 to a barrel,” he said.
“So, we think with all the engagements going on, countries going back to work like in Europe means consumption will come back, demand will rise because we have lost about 6.8 million barrels of demand in March alone.
“And when things come back, the market will balance and make sure that the market recovers. I am sure you are aware of all the engagements that have gone on internationally with OPEC, producers and the partners to make sure that there is balance.”
Kyari had earlier announced that there would no longer be fuel subsidy in Nigeria.
Subsidy is the cost incurred by the NNPC on behalf of the federal government to keep the pump price of petrol at the previous benchmark price of N145 per litre.
The federal government had approved a reduction in the pump price of petrol from N145 to 125 and now N123.50 per litre.