The Federal Government has expressed its readiness for talks with other Organization of Petroleum Exporting Country (OPEC) member states and their allies referred to as OPEC+, to review the development in the oil market.
This was disclosed by the Minister of State for Petroleum Resources, Timipre Sylva, during a press statement on Monday, April 6, 2020.
The Minister in his statement on behalf of the Federal Government, assured the Nigerian and International communities, that the government is observing the developments in the oil and gas industry with keen interest and will take a position that will favor its economic forecast.
In his statement, the Minister said, “I will continue to monitor the impact of Covid-19 on our economy and the global economy. In our consultations with global industry stakeholders in the lead up to the OPEC+ meeting scheduled for Thursday, April 9, 2020, the Nigerian Government will take a position that is in the best interest for our short term and long-term forecast.
It is well known that Nigeria has always collaborated with key OPEC members such as Saudi Arabia in maintaining a balanced position that has helped to make OPEC one of the most successful global institutions in recent history. Nigeria intends to maintain this team spirit even as it takes into account, the position of OPEC strategic allies such as Russia,’’ Sylva said.
The minister pointed out that the driving force of Nigeria’s OPEC policy is the stability of the country’s economy as well as the global economy which is heavily dependent on OPEC and its allies.
One of the major reasons for the crash in crude oil prices globally is the lockdown and travel restrictions that are being carried out globally in order to contain the spread and impact of the coronavirus disease. The lockdown and restrictions has led to low demand.
This is compounded by the oil trade war between Russia and Saudi Arabia.
A report from Fitch suggests that the Brent Crude could plunge to a single digit low, if the major oil producer do not immediately reach a deal for output cut.
Some days ago, the crude oil prices rallied back on the news of a potential deal between Russia and Saudi Arabia on the trade dispute.
The OPEC and its allies are scheduled to meet on Thursday as against the earlier planned Monday date, in order to see if they could agree on production cuts.
