Nigeria’s minister of State for Petroleum Resources, Ibe Kachikwu, has said that Brent crude oil price below a $65 mark will be rough for Africa’s largest economy thus, expects the price to remain well at the $70 dollar range through till next year.
“I like the feel of crude oil prices staying around $70 which is where it is hovering. However, I am very uncomfortable if it goes below $65 especially from my country Nigeria’s perspective at a time like this that we need all the money that we can get” Kachikwu said on the side-lines in an interview with Bloomberg, at the on-going 2018 Forum on China–Africa Cooperation (FOCAC).
Kachikwu also said that he sees momentum shifting in favour of keeping OPEC’s supply cuts well into 2019 if prices stay within the mid-70’s range. However, he fears that if oil prices get as high as $80 it would increase the momentum from consumer nations to take rift actions. Nigeria’s average daily crude oil production dropped to 1.84 million barrels per day in Q2 2018, from the 2.00 million barrels produced in Q1 2018.