The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, has attributed volatility in the global oil and gas industry to President Donald Trump's inconsistent tariff policies.
He said the trend resulted in a drop in oil prices at the international market.
At an interactive session with State House Correspondents in Abuja on Tuesday, he noted that the tariffs are fuelling uncertainty in international oil markets, driving volatility and dampening investor confidence.
“The global oil market today is reacting sharply to the erratic tariffing policies of the new American government,”; Ahmed said.
“These tariffs are not only aimed at China but are sweeping across multiple countries and regions. They are unsettling the balance of demand and supply, particularly in the energy sector.”;
According to the NMDPRA boss, the unpredictability surrounding the US government’s economic direction is forcing investors and traders into short-term, high-risk decisions.
“The problem is not just the tariffs,”; Ahmed explained.
“It’s the inconsistency. One day, a major policy is announced; the next, it is reversed or escalated. This kind of back-and-forth has made it almost impossible for investors to make long-term plans.”;
Ahmed said that many oil traders are now operating on what he called a “daily strategy,”; buying and selling within 24 hours due to fears of sudden policy swings from Washington.
“We’re seeing traders close out by the end of each day because they’re unsure what tomorrow’s news from the U.S. will bring,”; he said. “This isn’t healthy for the global market.”;
Ahmed also raised concerns that the Trump administration’s energy posture appears to favour lower crude oil prices – possibly below the $50-per-barrel mark – through a combination of aggressive domestic drilling and strategic manipulation of global supply lines.
“There is clearly a policy direction from the U.S. President to push crude oil prices down,”; he noted.
