The Federal Government has revealed that the decision by the Organisation of Petroleum Exporting Countries (OPEC) to cut two million barrels of crude oil production was unanimous, noting that the step was taken to stabilise the market.
This was disclosed in a statement personally signed by the Minister of State for Petroleum Resources, Chief Timipre Sylva on Tuesday
He stated that, “The decision taken by the OPEC+ (meaning OPEC and its allies) during a meeting on October 5, 2022, to voluntarily adjust crude oil production downward by two million barrels per day was unanimous.
“It was taken for the exclusive purpose of ensuring the long-term stability of the oil market. It was purely to balance supply and demand, and forestall a degeneration of the current volatile oil market to a situation where larger production cuts will be required to balance it.
“The decision was based on a thorough assessment of market conditions as OPEC plus has always been guided.”
Earlier this month, members of OPEC and their Russia-led allies made an agreement on a major cut in oil production, a move to prop up prices that could bolster sanction-hit Moscow’s coffers and irk Washington.
Nigeria, a strong member of OPEC produces over 1.4million barrels of crude oil daily, though the figure has crashed as a result of vandals and oil theft activities in the Niger Delta region.
This is the biggest cut since the height of COVID-19 pandemic in 2020.