High crude prices create an incentive for oil smuggling – Wale Okunrinboye – Nairametrics

When prices are high, there is a lot of incentive for people to try and make money from it in the export market as they expect to make more money. This is according to Wale Okunrinboye, Head of Research at Sigma Pension while speaking on reports of oil theft in Nigeria on the Nairametrics OnTheMoney (OTM) podcast show held on social media app Clubhouse. According to Okunrinboye, when oil prices spiral upwards, it serves as an incentive for smuggling. He said, “If prices are high, there is a lot of on incentive for people to want to steal oil…it just means that there is a lot of incentive for people to try and make a few barrels here and sell it at the export market”. “Unfortunately, the police and security placed around our export terminals still remain our issue and that is where you find that a lot of these losses are coming from”. He also stressed that between the country and the oil and gas industry, a solution to oil theft needs to be found. He further said the “heart” of the situation is the fact that, “the people where the oil is being mined, do not feel they…
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