Saudi Crown Prince in talks with President Buhari over oil price stability

Saudi Arabia’s Crown Prince, Mohammed bin Salman, had a telephone call with Nigeria’s President, Muhammadu Buhari on Monday to discuss further oil production cuts in a bid to improve the global crude markets, according to the Saudi News Agency.

The agency announced both countries talked on “ways of cooperation to enhance the stability “ of the Crude market.

The Saudi ruler usually calls other members of the oil cartel to negotiate and discuss OPEC issues.

READ MORE: U.S. dollar share of global currency reserves rose to 61.9% in Q1 2020 – IMF

OPEC+ wants to reduce global supply by 10% or 9.7 million barrels a day, however, Nigeria has been accused of not doing its part in production cuts.

GMD of NNPC, Mele Kyari promised on June 12 that Nigeria will commence production cuts in June and will achieve full compliance by July.

Exports show Nigeria is pumping 1.38 million barrels per day, however, Nigeria’s quota to meet its production cut is 1.37 million barrels per day.

Nigeria has ignored calls for OPEC production cuts in the past as the country enters an economic recessio0n which may be its worst in 40 years caused by weak global demand for its number one export, crude oil. IMF expects the Nigerians economy to decline by 5.4% in 2020, the World Bank forecasts 4.9 million Nigerians at risk of falling into poverty this year due to the falling economy.