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Business News of Thursday, 26 August 2021


Ghana must increase its oil storage capacity as global prices fall – Energy Consultant

Global prices on the oil market have been falling by the day Global prices on the oil market have been falling by the day

• Global prices on the oil market have been falling by the day

• This presents an opportunity for Ghana to increase its storage capacity

• Yussif Sulemana has therefore called on government to take advantage of the times

Energy Consultant, Dr. Yussif Sulemana has called for government to find workable solutions towards increasing its oil storage capacity.

According to him, this would help Ghana bolster its reserves as oil prices are currently low but set to rise as a result of market volatility hence a need to take advantage and cash out.

In an interaction with Citi Business News monitored by GhanaWeb, Sulemana explained that “Ghana must have massive storage ability and the reason is that, when these oil prices dip in bearish moments, that is the best opportunity for you to store.”

“And especially as volatile as oil price can be, once you store within a period of six months, especially now, it could skyrocket again and that is where you stand the chance to making gains,” he added.

To ensure that the country maximizes the full advantage of the current times, Sulemana further called on private sector individuals to lend their support to government.

“Private sector can even enter into the tank building space. That is a very lucrative area. If a private person can have a tank farm that can store hydrocarbon products at this moment in time, I think that person is going to derive a lot of benefits”.

Already, the oil market is at the moment experiencing some drop in pricing. Brent Crude oil as at August 25, 2021 has dipped from US$75 dollars per barrel to US$70 dollars a barrel.

Oil experts say that the price is set to dip further as a result of global demands which is currently on a decline as some countries in Asia have already shut down some sections of their ports due to the coronavirus pandemic.

Meanwhile, petroleum products in the Ghana have witnessed an increment in pricing with fuel now selling from about GH¢6.28 to GH¢6.35 across major pumps in the country.

But the Chamber of Petroleum Consumers has attributed the current increment in fuel prices as a result of the depreciation of the local currency