some support, operators in the exploration industry are hopeful that the cuts would be sustained to aid production and business sustainability.
For Nigeria, a continuous rise in oil prices will further strengthen the country’s capacity to finance its budget and increase reserves. “African energy companies and even state companies are facing a battle with liquidity because of the price war and the coronavirus. They do not have state bailouts as their Western counterparts. We hope the production cuts will give the market a boost, however compliance and collaboration from the G20 is key. OPEC has proven its ability to show leadership in times of crisis. We are all in this together,” added Ayuk.
“In Wood Mackenzie’s view, the fundamentals show the oil market is recovering from March’s price shock. Supply has shifted dramatically, with total world supply on average for the second quarter down by a steep 6 million b/d from the first quarter of 2020. Sylva, who reacted to the meeting of OPEC and other allies known as OPEC+ said Nigeria would collaborate with other nations in the historic efforts to adjust crude oil production towards rebalancing and stabilising the global crude oil market.
“We reiterate our resolve to conform with the decisions reached under the auspices of the 11th OPEC/Non-OPEC Declaration of Cooperation meeting.”