A lifeline may be coming toward Nigeria’s ailing crude-oil dependent economy as Iraq, yesterday agreed to join Nigeria, Saudi Arabia and others to freeze crude production, which in turn would likely increase crude price at the International market.
All earlier efforts to freeze oil production have been met with cold shoulders by the Saudis. Saudi Arabia refused to concede freeze without Iran coming on board.
For Nigeria, this may impact positively on its fortunes amidst the downturn of its economy, following incessant attacks on facilities which has dropped production drastically to a lower level.
The result of this impact also affected the sponsoring of the country’s budget and other pending projects currently suffering setback due to lack of funds.
However, militant groups said they have ended attacks on the nation’s oil and gas industry that have reduced the OPEC member’s output by 700,000 barrels a day to 1.56 million bpd.
Prime Minister of Iraq, Haider al-Abadi, said that it will support OPEC’s decision to freeze oil production in order to prop up the downturn of crude price at the international.
According to him, “We would freeze production at the OPEC meeting, provided Iraq will support the group’s agreement.”
Iraq’s oil Minister, Jabar al-Luaibi, had earlier noted that the country plans to play a very active role with other OPEC members to support prices while at the same time expanding its own output, which now stands at about 4.6 million barrels per day.
