Crude oil prices, on Friday, rose above $30 per barrel as oil producers from the OPEC+ coalition are discussing the possibility of slashing global crude oil production by 10 million barrels per day (bpd) in cooperation with producers from outside the group, a source with OPEC told Reuters.
The rise in crude oil prices came a day after US President Donald Trump said he had a fruitful conversation with Crown Prince Mohammed Bin Salman of Saudi Arabia and President Putin of Russia.
A final figure up for discussion would depend on the outcome of the meeting of President Trump with US oil firms later on Friday and over the weekend, Reuters’ source said.
After days of speculation about President Trump getting involved in the Saudi-Russian oil price war, President Trump later, in a coronavirus press briefing on Thursday, added that the 10 million bpd figure had actually been discussed in the conversations and that it could be as much as 15 million bpd.
Saudi Arabia called on Thursday for an urgent meeting of the OPEC+ coalition and “another group of countries” to try to find “a fair solution” to the current market imbalance.
The emergency meeting will be held via video conference on Monday, April 6, non-OPEC producer Azerbaijan said on Friday, adding it had been invited to take part in the meeting initiated by Saudi Arabia after talks mediated by President Trump.
However, after news of the OPEC+ meeting on Monday emerged, oil prices reversed earlier losses that were created by the media’s scepticism about a deal, Brent ACrude jumped to $33.01 per barrel as at 17:15 on Friday, with WTI Crude jumped to $26.50 per barrel.
If the rising crude oil prices are sustained, and Nigeria is able to get buyers for its unsold cargoes, it will mean more revenue for Nigeria as it discusses how to reduce crude benchmark in 2020 budget to $30 per barrel from $57 per barrel.