Deal On Oil Output Cuts Crucial For Global Markets Stabilization - Nigerian Ambassador

Deal on Oil Output Cuts Crucial for Global Markets Stabilization - Nigerian Ambassador

An agreement on oil output cuts is vital for the stabilization of global markets, Prof. Steve Davies Ugbah, the ambassador of Nigeria to Russia, told Sputnik

MOSCOW (Pakistan Point News / Sputnik - 09th April, 2020) An agreement on oil output cuts is vital for the stabilization of global markets, Prof. Steve Davies Ugbah, the ambassador of Nigeria to Russia, told Sputnik.

Later in the day, OPEC members and several non-OPEC oil producers are set to discuss the market stabilization.

"Forging mutual agreement to put pressure on the supply side for the purpose appropriate price determination and stabilization is imperative. In support of this, the Nigerian Minister of State for Petroleum has unequivocally declared Nigeria's readiness to be part and parcel of any decision taken by OPEC + countries to cut production in order to address distortions in the global oil market," the Nigerian diplomat said.

The oil price fall has had a negative impact on parties to a previous oil output deal and other producers, Ugbah said.

"Some oil producing countries made their budget based on prevailing oil prices as at the beginning of their budgetary cycle. The decline in the price oil exert budget implementation constraints," the diplomat said.

The previous oil output cut deal expired on April 1.