By John Ikani
The Federal Government of Nigeria has explained that the decision of the Organisation of Petroleum Exporting Countries (OPEC+) to cut the nation’s crude oil production downward by two million barrels per day was unanimous.
Disclosing this in a signed statement, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said the step was taken to stabilise the market and not for any ulterior motive.
According to him: “The decision taken by the OPEC+ (meaning OPEC and its allies) during our meeting on October 5, 2022, to voluntarily adjust crude oil production downward by two million barrels per day was unanimous.
“It was taken for the exclusive purpose of ensuring the long-term stability of the oil market. It was purely to balance supply and demand, and forestall a degeneration of the current volatile oil market to a situation where larger production cuts will be required to balance it.
“This proactive decision was based on a thorough assessment of market conditions as OPEC plus has always been guided.”
The decision is expected to take effect in November.
Nigeria is a strong member of OPEC as the country pumps over 1.4 million barrels of crude daily, though this figure has crashed due to the activities of vandals and oil thieves in the Niger Delta.
