COPEC in a statement said Brent crude plunged by 10.7% to $73.45/barrel on 26 November 2021 and the OPEC Reference Basket (OPB) plunged by 6.9% to $76.09/barrel on the same date.
According to COPEC, the plummeting crude oil prices was due to the new Omicron Variant new COVID-19 Omicron (B.1.1.529) variant which restricted mobility in some countries, and the expectation of gradual increment of oil production by the Organisation of Petroleum Exporting Countries (OPEC) +.
“However, Brent crude futures settled up $1.56, or 2.1%, at $76.85 a barrel, the highest close since Nov. 26, and a gain of 4.5% on the week as at 23rd December, 2021.
“Additionally, the U.S. West Texas Intermediate (WTI) crude futures ended up $1.03, or 1.4%, at $73.79 a barrel, to rise 4.1% on the week as at 23rd December, 2021. The surge in crude oil prices is due to Libyan supply disruptions cutting supply of about 300,000 b/d and the lower anxiety towards the new Omicron variant because of the perception that, the variant is containable than previously feared.”
“In Ghana, the National Petroleum Authority (NPA) indicated that the benchmark price for
petrol/MT for setting ex-pump price of petrol in the 1st Window of January 2022 is $707.95/MT. Again, the Benchmark price for diesel/MT for setting the ex-pump price in the same widow is $641.38/MT. The NPA set the Ghana Cedi at Ghc6.4040 against a dollar.
“Using the conversion factor of 1324.4 for petrol from a metric tonne to litres, 1183.43 for diesel from a metric tonne to litres and a maximum total marketer’s margin and dealer’s margin of Ghc0.75 based on the flexibility of OMC margins, as well as a forward rate of Ghc6.4040 to a dollar, the ex-pump prices for petrol is expected to surge by 3.7% and diesel is expected to surge by 2.5%. Averagely ex-pump prices are expected to surge by 3.1% in the 1st Window of January, 2022 from 1st to 16th January.”
Attached is the full statement