More N’Delta leaders beg NDA to shelve attacks as oil price jumps to $62.44
Monarchs, statesmen and governors have welded into the recent suspension of ceasefire by dreaded Niger Delta Avengers (NDA), calling on the militant group to shelve planned bombardments of oil installations.
The group had on Friday last week, announced on its website that it had suspended its ceasefire due to observed hanky-panky of the federal government in delivering on its promises to the development of the region.
Though former Minister of Information and leader of Niger Delta Elders Forum, Chief Edwin Clark was the first to call, for peace and more rooms for peace talks, other regional leaders and governor of Delta State, Senator Ifeanyi Okowa has joined in the calls for continued peace in the oil-rich region to avoid plunging back the economy into recession.
However, has assured of ability to quell any form of attacks in the region, experiences in the past show that damages on installations are always on the high side whenever the militants are at war with Joint task force.
Though oil prices had been on steady rise in the last couple of months, the announcement pushed the rise to $62.44 on Monday.
Though experts traced the surge to tight market condition due to some trending political developments in Saudi Arabia bordering on corruption probes, local analysts also fingered the threat by NDA as having impacts on the price jump.
Brent futures, the international benchmark for oil prices, hit $62.44 per barrel early on Monday, their highest level for years now.
U.S. West Texas Intermediate crude hit $56.00 per barrel in early trading, also the highest for many months now.
Crown Prince Mohammed bin Salman, Saudi Arabia’s designated future king, has tightened his grip on power through an anti-corruption purge by arresting royals, ministers and investors.
The arrest includes prominent business Billionaire, Alwaleed bin Talal, and the Head of the National Guard, Prince Miteb bin Abdullah.
According to Greg McKenna, chief market strategist at futures brokerage AxiTrader, “This consolidates the reforming process underway, part of which is a desire to drive the price of oil higher”.
International media had reported weekend that Bin Salman’s reforms include a plan to list parts of giant state-owned oil company Saudi Aramco next year and a higher oil price is seen as beneficial for the market capitalisation of the future listed company.
U.S. energy companies cut eight oil rigs last week, to 729, in the biggest reduction since May 2016.
Analysts say even though the understanding to withhold supplies runs to March 2018, but there is growing consensus to extend the deal.
