Oil Prices: Saudi Arabia and Russia Agrees To Freeze Crude Oil Output

52782-31ba5ea21877bcfa9234130791b38307

Saudi Arabia and Russia have agreed to freeze oil output in a meeting in Qatar.

Ali al-Naimi, the Saudi Arabian oil minister met with Alexander Novakin Doha, his Russian counterpart, and representatives from Venezuela and Qatar in Doha on Tuesday where they agreed a freeze in the oil production at January levels.

“Freezing now at the January level is adequate for the market,” said Saudi Arabian Oil Minister, Ali al-Naimi.

“We don’t want significant gyrations in prices, we want to meet demand. We want a stable oil price.”

The agreement fell short of cutting production to shore up oil prices.

The price of brent crude surged 6 per cent on Tuesday to trade at $35.22 a barrel in anticipation of an agreement.

It will be recalled that lawmakers differed on the $38 per barrel benchmark projected by president Mohamamdu Buhari in the 2016 budget as the price of crude of oil, the mainstay of the Nigerian economy.

Be the first to comment

Advertisements