Stability in oil market will benefit all consumers, producers, investors — Minister

The Minister of State for Petroleum Resources, Chief Timipre Sylva said a stable oil market will benefit all consumers,producers and investors.

The Minister said this in a statement on Sunday in Lagos.

He said Nigeria supports the call by Prince Abdulaziz Bin Salman, Minister of Energy of Saudi Arabia, to address the disconnect between paper and physical oil markets, to ensure 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.

“As such, any measure required to ensure the stability of the oil market, whenever it is necessary, will always be comprehensively supported by Nigeria,” the Minister said.

Sylvia said there was need for caution over current extreme volatility in the oil market.

He added that Nigeria, a world energy major, would work assiduously in ensuring a right and necessary path to stability.

The Organisation of Petroleum Exporting Countries (OPEC) had in May 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.