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Buhari in phone conversation with King Salman on oil market

Buhari in phone conversation with King Salman on oil market image

Buhari and Saudi King Salman in Riyadh in 2019

Nigerian leader, President Muhammadu Buhari has had a phone conversation with Saudi Arabia’s King Salman bin Abdulaziz over stabilising the oil market.

Saudi state news agency SPA reported the conversation on Wednesday.

There has been no statement from Nigeria’s Aso Rock.

According to the SPA, the two leaders “stressed the importance of compliance, by all participants, to the OPEC+ agreement and the agreed upon compensation mechanism.”

Buhari is also Nigeria’s oil minister.

A ministerial panel of key OPEC+ oil producers, headed by Saudi Arabia, is holding a virtual meeting later today to review the oil market and the group’s compliance with the current oil supply cut pact.

OPEC+ is unlikely to change its output policy, which currently calls for reducing output by 7.7 million barrels per day (bpd) versus a record high 9.7 million bpd up until this month, according to OPEC+ sources.

According to Reuters, the meeting would focus on compliance by countries such as Iraq, Nigeria and Kazakhstan.

Compliance with the cuts was seen at 95 per cent to 97 per cent in July, according to OPEC+ sources and a draft report seen by Reuters on Monday.

That is high by OPEC standards. In July, top exporter Saudi Arabia was still pumping below its target and Iraq and Nigeria, while lagging behind the Gulf OPEC members on compliance, were pumping less than in previous months, according to a Reuter’s survey and other assessments.

Brent crude LCOc1 has been trading near a 5-month high above 45 dollars a barrel and has more than doubled since hitting a 21-year low below 16 dollars in April, helped in part by the OPEC+ deal.

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