Nigeria has declared support for the call for her to cut oil production to stabilize the crude oil market
The Minister of State for Petroleum, Dr Emmanuel Kachikwu made the declaration during a world press briefing in Abuja, on Wednesday.
He said Nigeria would support any move by the Organisation of Petroleum Exporting Countries, OPEC to stabilise the market.
He stated that: “The price of oil today is hovering around 44 dollar and 70 cent I think, which means that the price for Nigeria is probably in the 46 dollar price range, definitely below the 50 dollar mark which tends to be where we get comfortable and lots of the reasons for this are largely due to increased shale production, and barrels coming out of Libya and Nigeria because of the exemption.”
“As a serious member of OPEC, we stand ready to support the cut when we are sure that we can have a stable predictable production,” he added.
Dr. Kachikwu also said that the Nigerian government was working hard to reduce the impact the oil price volatility would have on the budget.
“Obviously we have lost some months, about four months which we didn’t produce what the budget has projected, there is definitely going to be differential, but the Ministry of Finance is aggressively looking for ways to cover some of these fall shorts, part of that is efficiency. How do we cut down our expenditures,” he explained.
Continuing he said “what we provided for in the budget in terms of expenses would also reduce, certain capital items would be affected. If we don’t have money, we cant do certain capital projects we have in the budget. What I’m saying is the budget will be impacted but we are working hard in the Federal Executive Council to see how we can forecast or predict that some of impact and see how we can cover it.”
He says to achieve stability in the crude oil market, both members and non members of the Organisation of the Exporting Countries, OPEC must work together.
”We call on all those who are producing ,who are not members of OPEC, to continue to support the whole process of stabilising this market cause ultimately, it is for the good of all” Dr. Kachikwu concluded.