Dr Adu Owusu Sarkodie, an economist, has said Ghana could generate higher revenue from crude oil exports if international prices rise due to the ongoing Middle East war.
According to the economist, Ghana, as an oil-exporting country, stands to benefit when global crude oil prices increase.
Dr Adu Owusu Sarkodie stressed that Ghana could receive more income than originally projected if production levels remain unchanged while prices increase.
He noted that such gains could give the government additional fiscal space, however, adding that the broader economic impact will depend on how long international tensions last and how global markets respond.
Speaking on PM Express Business Edition on Joy News, he explained, “I have already stated that Ghana also will export crude oil, so when the international crude oil price increases, Ghana stands a chance”.
“If we keep the quantity the same, then we stand a chance of getting more revenue than projected,” he explained.
Meanwhile, Global oil prices have hit $110 (£82.74) a barrel, with the stock markets slumping following the escalating US-Israeli war with Iran.
Reports suggest the increasing US-Israeli war with Iran has fueled fears of long-term disruption to shipments through the Strait of Hormuz.
The BBC in a news story stated, “The US and Israel launched fresh waves of airstrikes across Iran over the weekend, hitting multiple targets, including oil depots.
Major disruption to energy supplies from the region threatens to push up prices for consumers and businesses worldwide.
On Monday morning in Asia, Brent crude was almost 24% higher at $114.74, while Nymex light sweet was up by more than 26% at $114.78.
Stock markets in the Asia-Pacific region fell sharply in morning trade, with Japan’s Nikkei 225 index down by more than 7%, the Hang Seng in Hong Kong losing over 3%, and the ASX 200 in Australia more than 4% lower.
South Korea’s Kospi index, which has been hit especially hard since the conflict began, slipped by more than 8%, triggering a 20-minute halt to trading.
The so-called circuit breaker is a mechanism designed to curb panic selling. It also came into effect on Wednesday, when the Kospi slumped by 12%.
About a fifth of the world’s oil supply is usually shipped through the Strait of Hormuz. But traffic through the narrow passage has all but halted since the war started a week ago”.
Parts of the BBC story added, “US President Donald Trump responded to the jump in prices by saying that short-term rises were a “small price to pay” for removing Iran’s nuclear threat.
His energy secretary told US broadcasters on Sunday that Israel, not the US, was targeting Iran’s energy infrastructure, amid some concern about rising domestic pump prices caused by the war”.
In related news, Duncan Amoah, the Executive Secretary of the Chamber of Petroleum Consumers (COPEC), has warned that the Middle East tensions will hit Ghana’s pumps soon.
According to Duncan Amoah, although Ghana currently has enough fuel in stock, he argued that private traders are already factoring the crisis into their pricing decisions for future cargoes.
Speaking on JoyNews’ The Probe on Sunday, March 1, Mr Amoah explained, “If I was a trader and I woke up tomorrow to have to put stock on the market, I would definitely bear in mind the fact that these hostilities or tensions prevailing within the Middle East could affect the next cargo containment that I get down here”.