Ghana Energy Minister: Iran Sanctions will Impact Current Crude Oil Prices for Ghana

Alhaji Inusah Fuseini, Deputy Energy Minister, says that sanctions imposed by the U.S. and the West against Iran can have consequences for Ghana.

The minister said that the sanctions versus the Gulf region, and the insecurity that goes with it, have an impact on the rise and fall of current crude oil prices in the global market.

Ghana emphasized that threatening the Middle East, an important producer of crude oil demand, will push oil prices higher. Consequently, many non-producing countries and several marginal oil manufacturers, including Ghana, will be forced to allocate an overwhelming share of national resources on oil importation.

The Deputy Energy Minister said that the main effect will be having to pass on budgeted projects designed to alleviate energy importation’s high demand within the country.

In particular, Fuseini said that due to being an importer of oil, the rise and fall of crude prices in the global market will impact imports of crude to the country.

He recalled how Ghana had to make several adjustments based on crude oil price history in 2008 reached 140 dollars per barrel. Specifically, the country halted planned deregulation to let their citizens purchase the market’s crude oil.

Fuseini said that the OECD and OPEC nations need to provide more oil in case of a shortage due to lack of Iranian oil supplies.

Dr. Sam Buame, an expert on entrepreneurship and the international market, said that since Ghana imports a majority of its crude oil, the Iranian embargo will have a greater negative effect to the United States.

Currently, Ghana requires around 60,000 crude barrels per day, and none of its consumption comes from their own fields. Moreover, the Tema Oil Refinery can only refine around 45,000 barrels, and is presently deemed as incapacitated, according to a lecturer of the University of Ghana Business School.

 By: Chris Termeer