21 June 2018

Nigeria, Saudi Arabia, Others Disagree Over Oil Supply

Photo: The Guardian
Oil rig.

Nigeria, Saudi Arabia and other members of the Organisation of Petroleum Exporting Countries, OPEC, have disagreed over oil supplies as meeting of the organisation begins tomorrow in Vienna, Austria.

Investigation by Vanguard showed that the disagreement became obvious, following Saudi Arabia's lobbying of members to support its call for increased oil supply to the market.

It showed that many nations have been lobbying behind the scene to enable them have their ways due to strong pressure from major consuming nations, especially the United States and China that prefer increased supply and lower prices.

An authoritative OPEC source disclosed in a telephone interview with Vanguard, yesterday, that while Saudi Arabia has openly canvassed for a huge increase in supply, Iran said it would compromise on a small increase in OPEC oil output.

Iranian Oil Minister, Bijan Zanganeh, said OPEC members that had over delivered on cuts in recent months should return to compliance with agreed quotas.

OPEC source also said that pressure for increased output was also coming from some non-OPEC members, especially Russia, currently supporting the position of Saudi Arabia.

Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who has already arrived Vienna, Austria for the engagement, did not respond to Vanguard email yesterday.

But a member of Nigerian delegation to the event said as a loyal member, Nigeria will support the position of OPEC leadership to retain the current supply level in order stabilise the market.


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