Russia, OPEC aligned on extending output cuts - Nigeria oil minister

Nigeria's Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu, expressed optimism about the ongoing efforts to stabilize the global oil market through production cuts. Kachikwu highlighted that there has been significant progress in terms of compliance with the production cut agreement among 24 nations, but acknowledged that there is still work to be done. Speaking to CNBC ahead of the OPEC meeting, Kachikwu emphasized the need to continue on the path of production cuts to ensure market stability. He reassured that both OPEC and Russia are aligned in their commitment to extend the output cuts, dispelling any notions of discord between the two parties. Kachikwu emphasized the importance of collaboration and consensus among oil-producing nations to effectively manage market dynamics. Addressing the issue of U.S. shale production, Kachikwu acknowledged the challenges posed by shale producers but stressed the need for OPEC to focus on being the least cost producer and not be overly concerned about shale competition. The Minister also discussed Nigeria's role in the production cut agreement and pledged to uphold their commitments to support market stability. Despite concerns about the resurgence of Nigerian and Libyan oil production potentially undermining the effectiveness of the output cuts, Kachikwu remained confident in the collective efforts of OPEC to address any challenges. He dismissed fears of significant price declines, citing a unified bloc and positive market impacts achieved through the production cuts. Overall, Kachikwu's comments reflect a sense of optimism and determination to sustain the progress made in rebalancing the oil market through continued collaboration and adherence to production cuts.