Stable oil market is for the benefit of all, an official said.
The Nigerian government has said that it agrees with the call by the Minister of Energy of the Kingdom of Saudi Arabia, Abdulaziz Bin Salman, to promote stability in the global oil market.
Nigeria’s Minister of State for Petroleum, Timipre Sylva, made this known in a statement on Sunday.
Saudi Arabia’s energy minister said on Monday that it was important to concentrate on the stability of the oil market rather than the price of oil, adding that a fair price was a reflection of price stability.
The minister said oil exporters taking part in the global output deal between OPEC and its allies were showing serious commitment to the cuts.
Analysts have opined that there is a disconnect between the paper and physical realities of the global oil market, with a lack of sufficient liquidity resulting in paper markets being unable to effectively reflect the realities of physical markets.
The Saudi minister had emphasized that “in a way, the market is in a state of schizophrenia, and this is creating a type of yo-yo market, sending erroneous signals at times when greater visibility and clarity and well-functioning markets are needed more than ever to allow market participants to efficiently hedge and manage the huge risks and uncertainties they face.”
Sylva Speaks
Mr Sylva noted in his statement that there is a need to address the disconnect between paper and physical oil markets, essentially in order to ensure a true reflection of the existing fundamentals.
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“Stable oil market is for the benefit of all,” he said in the statement.
“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 added that the current extreme volatility observed in the oil market calls for caution, and Nigeria, a world energy major, would work assiduously in ensuring a right and necessary path to stability.
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