President Muhammadu Buhari’s regime, in a statement, said it supported Saudi Arabia’s call for a stable oil market, emphasising that it would benefit consumers, producers and investors.

Timipre Sylva, Minister of State for Petroleum Resources, said Nigeria supported the call by Abdulaziz Bin Salman, Saudi Arabia’s Minister of Energy, to address the disconnect between paper and physical oil markets, to ensure a true reflection of the existing fundamentals.

“A stable oil market benefits all – consumers, producers and investors alike. It is also a catalyst for global economic growth,” he said.

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

Mr Sylvia said there was a need for caution over the current extreme volatility in the oil market, adding that Nigeria, a world energy major, would work assiduously in ensuring a right and necessary path to stability.

In May, the Organization of Petroleum Exporting Countries (OPEC) warned that the conflict between Russia and Ukraine was causing huge volatility in the global energy market.

“From the oil market perspective, what is clear is that Russia’s oil and other liquids exports of more than 7 million barrels per day cannot be made up from elsewhere. The spare capacity just does not exist.

“Its potential loss through either sanctions or voluntary actions is clearly rippling through energy markets,” OPEC had said. 

(NAN)