There is hope at the end of the tunnel for Nigeria as oil is trading above $31 a barrel on Friday, reversing earlier declines, as OPEC+ scheduled an urgent meeting next week after a historic slump in prices that has crippled the energy sector. READ ALSO: Oil Price: President Trump Assures On Meeting With Russia, Saudi Arabia
The price surge which follows US President Donald Trump’s statement that he expected Saudi Arabia and Russia to cut oil supplies by as much as 10 million barrels a day, provides much reprieve to countries like Nigeria worst hit by the scramble for bigger market share among the top producers.
Brent, the internationally traded benchmark crude is trading at $31.33 while the US grade WTI sold for $25.53 a barrel after earlier losses.
Oil traders said they expect the coalition that includes OPEC and Russia to hold a meeting by video conference on Monday, even though it is still not clear who will attend.
News of the plan came just hours after U.S. President Donald Trump said he expected global producers including Saudi Arabia and Russia to cut more than 10 million barrels of production, triggering the biggest ever jump in prices on Thursday.
The virtual meeting will be open to all producers, not just those that are part of the OPEC+ alliance, according to the delegates.
While Trump tweeted Thursday that he had spoken to Saudi Crown Prince, Mohammed bin Salman, who had in turn spoken with the Russian president, Vladimir Putin.
A source revealed that the U.S. president’s goal is purely aspirational and will ultimately hinge on whether Riyadh and Moscow can reach a deal.
The global oil price crash is setting up a bleak second quarter for many nations including Nigeria, whose economies are heavily dependent on oil receipts.
This development comes as cheering news for Nigeria as the country economy is already feeling the heat of the price war and the outbreak of coronavirus.
Nigeria having offered her biggest export crude grades, Qua Iboe and Bonny Light, at a discount of $3 below the benchmark, is struggling to find buyers for its April cargoes.