NIGERIA: THE CRUDE OIL ECONOMY
Saudi Arabia made what has been described as a surprise announcement, it will voluntarily deepen its crude oil output cuts. The announcement stated that this voluntary output cut would take effect from June.
The cut is an additional 1 million barrels per day which will reduce Saudi production to the lowest level in 18 years. The ostensible reason given by the Saudis is to hasten a recovery from the crash in oil price benchmarks which has pitched them into austerity. According to Energy Minister Abdulaziz bin Salman Al Saud, Saudi Arabia wanted to be ahead of the curve.
The Nigerian national oil company has eventually come to its senses and arrived at the position every other rational actor in the industry has advocated and postponed the full blown Oil bid round which was announced last month as scheduled to take place within 2 weeks.