President Buhari supports Saudi Arabia's appeal for a stable oil market

The administration of President Muhammadu Buhari stated in a statement that it backed Saudi Arabia's appeal for a stable oil market and emphasized how it would be advantageous for investors, producers, and consumers.

Nigeria, according to Timipre Sylva, Minister of State for Petroleum Resources, welcomed Abdulaziz Bin Salman's request to fix the gap between the paper and physical oil markets in order to assure an accurate portrayal of the current fundamentals.

“A stable oil market benefits all – consumers, producers and investors alike. It is also a catalyst for global economic growth,” he said.

The minister added, “As such, any measure required to ensure the stability of the oil market, whenever necessary, will always be comprehensively supported by Nigeria.”

The current extreme volatility in the oil market, according to Mr. Sylvia, calls for caution. He also stated that Nigeria, a major global energy producer, would work tirelessly to ensure a proper and necessary path to stability.

The conflict between Russia and Ukraine caused significant instability in the global energy market, the Organization of Petroleum Exporting Countries (OPEC) warned in May.

"From the viewpoint of the oil market, it is evident that Russia's daily exports of more than 7 million barrels of oil and other liquids cannot be offset by imports. There is just no spare capacity.

According to OPEC, the possible loss of this oil is "obviously rippling across the energy markets, whether through sanctions or voluntary steps."

Source