FG endorses OPEC oil production cut

The Minister of State Petroleum Resources, Chief Timipre Sylva has backed the decision of the Organization of Petroleum Exporting Countries (OPEC) to cut two million barrels of crude oil production, saying that it was a unanimous one.

The decision taken by OPEC and its partners in their last meeting at the beginning of the month is expected to take effect in November.

So far, Nigeria has been unable to meet its oil production quota of 1.8 million barrels per day due to activities of oil thieves and pipeline vandals.

Chief Sylva in a statement in Abuja yesterday explained that the decision on production cut was taken to stabilize the market and not for any ulterior motives.

He stated, “The decision taken by the OPEC+ during our meeting on 5th October, 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.

“This proactive decision was based on a thorough assessment of market conditions as OPEC plus has always been guided.”