Farouk Ahmed, the Chief Govt Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has pointed to President Donald Trump’s unpredictable tariff insurance policies as a serious contributor to the turmoil inside the world oil and fuel sector.
This instability, in keeping with Ahmed, has led to a noticeable drop in oil costs on the worldwide market.
Talking with State Home Correspondents in Abuja on the fifteenth of April, 2025, Ahmed defined how these tariffs are creating uncertainty throughout worldwide oil markets, fueling volatility, and undermining investor confidence.
“The worldwide oil market right this moment is reacting sharply to the erratic tariffing insurance policies of the brand new American authorities,” Ahmed mentioned.
“These tariffs are usually not simply concentrating on China however are spreading throughout numerous international locations and areas, disrupting the fragile stability of demand and provide, particularly within the vitality sector.”
He additional defined that the unpredictability surrounding U.S. {economic} insurance policies is forcing merchants and traders to make choices pushed by short-term dangers.
“The issue isn’t merely the tariffs,” he clarified. “It’s the inconsistency. Sooner or later a coverage is introduced, and the following it’s reversed or intensified. This fixed flip-flopping is making it almost unimaginable for traders to plan for the long run.”
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In accordance with Ahmed, many oil merchants at the moment are adopting a “every day technique,” participating in transactions inside a 24-hour window as a result of fixed menace of sudden coverage shifts from Washington.
“Merchants are closing positions by the tip of the day as a result of they’re unsure about what tomorrow’s U.S. information will deliver,” he mentioned. “This creates an unhealthy setting for the worldwide market.”
The NMDPRA CEO additionally expressed concern over the Trump administration’s strategy to vitality, which appears to favor driving crude oil costs down doubtlessly under $50 per barrel by aggressively pushing for home drilling and manipulating world provide chains.
“There’s a clear coverage course from the U.S. President to push crude oil costs down,” Ahmed noticed.
