Nigeria Expectant As Trump Stops Oil Price War

By Emmanuel Aziken

In a departure from the former United States policy of encouraging low oil prices, President Donald Trump has intervened to stop the price war between Russia and Saudi Arabia to the possible advantage of Nigeria.

Energy ministers from the OPEC+ are scheduled to meet on Monday via video conference to respond to deteriorating conditions in the market that has seen oil prices down to near 20 years low amid concerns of the prospect of a forthcoming global economic downturn.

“This meeting is being held at the invitation of the kingdom of Saudi Arabia after the talks mediated by U.S. President Donald Trump,” Azerbaijan’s Energy Ministry said in a statement.

The meeting will include the members of the Vienna-based Organisation of Petroleum Exporting Countries (OPEC) and allied oil-producing states in the OPEC+ format, such as Azerbaijan and Russia, according to the statement.

Trump had on Thursday said that he expected Russia and Saudi Arabia to cut oil production in an effort to stabilize prices.

A price war between Russia and Saudi Arabia has drastically driven down oil prices globally. On top of that, a slowdown prompted by the coronavirus pandemic has reduced demand.

Trump has been in contact with Saudi Arabia’s crown prince, Mohammed Bin Salman, and Russian President Vladimir Putin this week to discuss the oil market.

“I expect and hope that they will be cutting back approximately 10 million barrels and maybe substantially more, which, if it happens, will be great for the oil and gas industry,’’ Trump said on Twitter.

Industry analysts say Trump’s fears that the price war could not just put the Shale industry in the US out of reckoning but would also impair the mainstream US oil players and by that worsen the US economy.

Besides, there are also fears that a prolonged price war could deepen US financial handouts to Iraq which has been devastated by the price war.

GreenWhiteGreen analysts project that Nigeria which has been hard hit by the oil war with its limited production is hopeful that the Trump intervention will help to rally prices to help the country cushion the negative effects of the COVID-19 pandemic.

Brent Crude which compares with Nigeria’s Bonny Crude was on Friday selling for $32 per barrel after a rally that followed Trump’s intervention after reaching a 20 year low a few days ago.

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