As members of the OPEC, prepare for the joint ministerial monitoring committee meeting in Russia, Nigeria expressed commitment to support all resolutions to stabilize the international oil market. The meeting is scheduled for July 24, 2017, in St.Petersburg.
The nigerian minister Ibe Kachikwu assured that there was already a consensus among members on what the position is, and what needs to be done.
«There is no disagreement on that. All of us in OPEC are very united and focused on what needs to be done to stabilize the market. We will play our role. We will call on all those who are also producing, who are not members of OPEC, to continue to support the process of stabiliding the market for the common good of all,» he said.
«Nigeria is a firm member of OPEC. We have been active in the organization for 46 years. We will continue to support what OPEC is doing to stabilize the market,» he added.
With crude oil price currently hovering around $44.7 a barrel, the minister said it was on a good trajectory, although he noted OPEC members would be more comfortable with the price band of $55 and $60 per barrel.
He blamed the lingering low crude oil prices to increased aggressive shale oil production by the U.S., although he noted that Nigeria and Libya were currently being shielded from the pressures due to the exemption from output cut policy granted the duo by OPEC last January.
Some OPEC members have said they would be calling for a review of Nigeria and Libya’s exemption in a bid to further raise oil price. It is, however, not certain if that would be agreed at the July 24 meeting.
Given Russia’s cooperation and the support of non-OPEC producers, Mr. Kachikwu said, the dialogue must be sustained to maintain the price level, which has remained stable in the last one year.
On the impact of the slow production on Nigeria’s budget, Mr. Kachikwu said with projected 2.2 million barrels and benchmark price of price of $42.5 per barrel approved in the budget, the country lost about 4 months due to delay in the approval of the budget.
