Prices of petroleum products are far from getting cheaper with giant crude oil producers – Saudi Arabia and Russia vowing to maintain their hawkish stand on supply to global markets.
The result is that, as crude oil prices soar, so will the prices of petroleum products, particularly petrol, in the international market.
Both the Nigeria National Petroleum Corporation Limited (NNPCL) and the Nigerian government have been labouring on how to maintain reasonable price for petrol amidst fuel subsidy removal.
Saudi Arabia and Russia have both confirmed that they will be keeping their supply cuts in November despite the recent oil price rally.
The announcements came just hours before the Joint Ministerial Monitoring Committee and appeared to be coordinated.
Expectations were that no changes would be made during this meeting, and oil prices were trading slightly lower on Wednesday morning.
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Saudi Arabia and Russia, the key OPEC+ partners, will be keeping their oil supply cuts in November despite the recent crude oil price rally.
Hours before a regular OPEC+ panel meeting, Saudi Arabia said early on Wednesday it would continue cutting an extra 1 million barrels per day (bpd) from its crude oil production in November and December, and Russia said in a separate statement it would continue to reduce oil exports by 300,000 bpd until the end of the year.
Saudi Arabia continues with the extra 1 million bpd cut in November and December and thus the Kingdom’s oil production will be approximately 9 million bpd until the end of the year, the Saudi Ministry of Energy said as carried by the official Saudi Press Agency.