Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has pointed to President Donald Trump’s unpredictable tariff policies as a major contributor to the turmoil within the global oil and gas sector.
This instability, according to Ahmed, has led to a noticeable drop in oil prices on the international market.
Speaking with State House Correspondents in Abuja on the 15th of April, 2025, Ahmed explained how these tariffs are creating uncertainty across international oil markets, fueling volatility, and undermining investor confidence.
“The global oil market today is reacting sharply to the erratic tariffing policies of the new American government,” Ahmed said.
“These tariffs are not just targeting China but are spreading across various countries and regions, disrupting the delicate balance of demand and supply, especially in the energy sector.”
He further explained that the unpredictability surrounding U.S. economic policies is forcing traders and investors to make decisions driven by short-term risks.
“The problem isn’t merely the tariffs,” he clarified. “It’s the inconsistency. One day a policy is announced, and the next it’s reversed or intensified. This constant flip-flopping is making it nearly impossible for investors to plan for the long term.”
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According to Ahmed, many oil traders are now adopting a “daily strategy,” engaging in transactions within a 24-hour window due to the constant threat of sudden policy shifts from Washington.
“Traders are closing positions by the end of the day because they’re uncertain about what tomorrow’s U.S. news will bring,” he said. “This creates an unhealthy environment for the global market.”
The NMDPRA CEO also expressed concern over the Trump administration’s approach to energy, which seems to favor driving crude oil prices down potentially below $50 per barrel by aggressively pushing for domestic drilling and manipulating global supply chains.
“There is a clear policy direction from the U.S. President to push crude oil prices down,” Ahmed observed.