Nigerian Oil Minister, Emmanuel Ibe Kachikwu, has said that while a cut in OPEC production is unlikely, there is hope a meeting of producers in Algeria next month could help shore up crude prices.
Kachikwu also said in a speech in Lagos that his country’s oil output had fallen to 1.56 million barrels per day (bpd) as persistent militant attacks took out some 700,000 bpd.
But he cast doubt on any plans by members of the Organization of the Petroleum Exporting Countries to voluntarily reduce their output at the meeting in Algeria.
“Are we cutting volumes? I don’t see that happening,” Kachikwu told reporters, but added that all options are on the table and other action could have an impact.
“Will that meeting help lift the price? Well yes if we succeed in having conversations with Russia, the USA and Mexico.”
Russian output currently hovers near an all-time high of 10.85 million bpd. It has signalled it is no longer keen on a dialogue to freeze output and would continue boosting production. North American producers are also expected to add more barrels.
Four streams of Nigeria’s oil, including the country’s largest, Qua Iboe, along with Bonny Light, Brass River and Forcados are currently under force majeure.
Kachikwu said the violence had also slashed domestic gas supply this year from 1,400 millions of standard cubic feet (mmscf) to 550 mmscf.