Coronavirus has since affected the demands of crude oil in the market.
And so far 84 million barrels of Nigerian crude oil stranded at high sea a report by Wall Street Journal has said.
The report from Wall Street journal as at 27th April 2020 said cargo ships filled with Nigerian crude had nowhere to go and Nigerian oil companies were competing to fill the “last few empty tankers still left at sea”.
The vessels carrying the crude oil product is said to be belonging to Royal Dutch shell and ExxonMobil and according to the Wall Street Journal, a tanker was turned back from the US Gulf Coast and it returned to the Canary Islands, where other Nigerian-hired ships are idled.
But according to experts, it would be risky to shut down production in some oil fields as the wells are “too old to be restarted once they go idle”.
However, a situation where companies run out of vessels would make shutting the oil fields inevitable.
“When there are no more vessels to load the crude, then the entire world collapses,” Kola Karim, the chairman of Shoreline Natural Resources, was quoted to have said.
“You will have serious, serious security implications. Unrest.
Nigeria as a nation whose sole income is dependent on oil, the country has so far slashed it’s 2020 budget which has been affected by crude oil price.