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Oil Glut: Authorities said Influencing Oil Price through Production is now out of the Question

Emmanuel Ibe Kachikwu
Nigeria’s minister of state for petroleum, Emmanuel Ibe Kachikwu, said today (Wednesday 13th January) that Nigeria will not reduce her crude oil production level even though the country is facing plunging crude oil prices caused by global supply glut at the international market.


Nigeria economy had since shrunken due to the slump in the oil prices. With crude oil accounting for about 90 per cent of the country's export earnings and 70 per cent of overall government revenue, there is no far fetch reason why the country should arrive at such decision; the continuous fall in prices is having adverse effects on the country’s revenue.


US crude oil prices tumbled to a 12-year low at USD 30 on Tuesday, this have thus, prompted OPEC member Nigeria to call for an emergency meeting of its member countries to address crumpling crude oil prices that have sapped the treasuries of Nigeria.


Nigeria minister of state for petroleum, Emmanuel Ibe Kachikwu said in Abu Dhabi, he expected an extraordinary meeting of OPEC, the global oil cartel in early March to discuss the continued crash in oil prices.

Finding solutions to the current challenge facing the sixth largest Africa’s crude oil producing country, Nigerian National Petroleum Corporation (NNPC) marketing head Mele Kolo Kyari said, Nigeria can do little in response to the collapsing price of crude.


Talking with AFP in Abuja, he said "Nigeria cannot stop the prices of crude from going down.

"The easiest thing to do is to control production but Nigeria can only do that through the OPEC framework and the last OPEC meeting did not agree to cut down production.

"So influencing the price through production is now out of the question."

It can be recalled that Saudi-led Gulf exporters within the Organization of Petroleum Exporting Countries (OPEC) have so far refused on cutting production to check nose-diving oil prices. Their refusal is based on the singular fact that they are seeking to protect their own market share despite a heavy blow to their revenues.

But until the meeting is formally confirmed, Nigeria can do little in response to the collapsing price of crude, said Nigerian National Petroleum Corporation (NNPC) marketing head Mele Kolo Kyari.












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