Nigeria Backs Saudi Arabia’s Call for Stable Global Oil Market

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…Saying a Fair is a Reflection of

Nigerian has expressed support for Saudi ’s preference for a more stable global oil market than the consideration for oil price.

Early last week, Saudi ’s energy minister, Abdulaziz Bin Salman, said it was important to concentrate on the stability of the oil market rather than the of oil, adding that a fair price was a reflection of market stability.

The Saudi minister had emphasized that the market is in a state of schizophrenia, and this is creating a type of yo-yo market, sending erroneous signals at times when greater visibility and clarity and well-functioning markets are needed more than ever to allow market participants to efficiently hedge and manage the huge risks and uncertainties they face.

Yesterday, ’s minister of state petroleum resources, Mr. Timipre Sylva said Nigeria government agrees with the call by the Kingdom of Saudi Arabia.

In a statement yesterday, Sylva said oil exporters taking part in the global output deal between and its allies were showing serious commitment to the cuts.

Mr. Sylva noted in his statement that there is a need to address the disconnect between paper and physical oil markets, essentially in order to ensure a true reflection of the existing fundamentals.

“Stable oil market is for the benefit of all. A stable oil market benefits all – consumers, producers and alike. It is also a catalyst for global economic growth.

“As such, any measure required to ensure the stability of the oil market, whenever it is necessary, will always be comprehensively supported by Nigeria.”

The minister added that the current extreme volatility observed in the oil market calls for caution, and Nigeria, a world energy major, would work assiduously in ensuring a right and necessary path to stability.


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