The Nigerian Government has expressed support for Saudi Arabia’s call for a stable oil market, saying it will be beneficial to all stakeholders.
Minister of State for Petroleum Resources, Timipre Sylva, in a statement, yesterday, said the call by the Minister of Energy of Saudi Arabia, Abdulaziz Bin Salman, for a stable global oil market and a fair price is agreeable.
He stressed the need to address the disconnect between paper and physical oil markets, essentially in order to ensure a true reflection of the existing fundamentals.
Sylva said “A stable oil market benefits all – consumers, producers and investors alike. It is also a catalyst for global economic growth.
“As such, any measure required to ensure the stability of the oil market, whenever necessary, will always be comprehensively supported by Nigeria.”
He added that the current extreme volatility observed in the oil market calls for caution, and Nigeria, a world energy producer, will work assiduously in ensuring a right and necessary path to stability.
Recall that Bin Salman had last Monday argued that it was important to concentrate on the stability of the oil market rather than the price of oil, adding that a fair price was a reflection of price stability.
The Saudi minister said: “in a way, 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.”
Nigeria and Saudi Arabia are members of the Organization of the Petroleum Exporting Countries (OPEC).
A stable oil market benefits all – consumers, producers and investors alike. It is also a catalyst for global economic growth.
