New Telegraph

Oil: Nigeria faces crisis as Opec+ plans substantial cut

Nigeria and some other members of the  Organisation of Petroleum Exporting Countries (OPEC) and its allies may be affected by expected oil supply cut as OPEC and its allies meet on October 5.

The global oil cartel led by Saudi Arabia and Russia is planning an oil output cut of more than a million barrels per day to prop up falling prices, according to people close to the discussions. The cut may be the biggest move yet since the COVID-19 crisi to address oil market weakness.

The meeting, which is the 33rd OPEC and non- OPEC Ministerial Meeting scheduled at OPEC Secretariat in Vienna, Austria, will be the first physical meeting of the oil cartel since March 2020.

Many organisations had stopped physical meetings as a result of the global Coronavirus pandemic, popularly called COVID-19. However, some of them later resumed physical meetings after the pandemic had substantially reduced.

 

The oil cut move threatens to boost oil prices at a time much of the world is fighting to bring energy costs down and could create a potential rupture with the US, where President President of the United States, Joe Biden, has been trying to lower fuel prices for motorists ahead of crucial midterm elections next month.

Two people briefed on Saudi Arabia’s thinking say, however, that Saudi Arabia is keen to lower output both to prop up prices and so it can keep some production capacity in reserve.

The kingdom fears Russian output could fall sharply later this year when western sanctions against its oil exports tighten.

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