Nigeria, Saudi Arabia Strategise On Oil Market Stability

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Petrol prices have slid globally amidst the upheaval in the oil market following the sanctions on Iran and increased output from OPEC as well as America.

According to Reuters, Moscow intends to reduce oil production gradually, and at the moment it is trading with Saudi Arabia with respect to time and volume reduction.

America, with OPEC and Russian Federation, seems to be working towards keeping oil in the $50 range globally, which means we can expect the local prices to stay at the current levels at least for some time.

However the market was kept guessing by separate comments from Russian President Vladimir Putin who said that crude around $60 a barrel was "absolutely fine". As Delia Morris, Houston-based commodity pricing analyst, told Rigzone earlier this week, global oil markets are anxiously awaiting the outcome of the December 6 Organization of the Petroleum Exporting Countries (OPEC) meeting and whether the cartel will agree to curb output.

Saudi Arabia is in talks with various oil producing countries to address the volatility in the global crude oil market.

The oil price "fell and then rose again but in my opinion, a level around $60 is quite acceptable, we are completely satisfied", he told an investment forum.

"We are going whatever is necessary, but only if we act together as a group of 25", Falih told reporters, referring to the Organization of the Petroleum Exporting Countries and its allies.

Prices rebounded after sources said Russian Federation would consider join an effort to cut alongside Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries.

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"This led to positive results", Putin said.

"As Saudi Arabia we can not do it alone, we will not do it alone", he told reporters in Abuja where he met his Nigerian counterpart Emmanuel Ibe Kachikwu.

"Everybody is longing for reaching a decision that brings stability back to the market", he said.

Putin's remarks show support for the Saudi prince, while analysts think that the G-20 summit in Argentina may be the more important venue for the OPEC-Russia oil cooperation than next week's full OPEC+ meeting.

Falih this month said that the abundant supply of oil could require OPEC and its allies to reduce output in 2019. Traders are looking for supply cuts between 1 million and 1.4 million barrels per day (bpd).

"Iraq will probably say the right things regarding the OPEC meeting, about constraining or reducing output or even just "expressing support" for new output cuts", said Michael Barry, director of research at consultant FGE in London.

To maximise revenue, the government pumped a record 4.69 million barrels a day in October.

But the U.S. also offered generous waivers to allies who imported Iranian crude and might have struggled to find other supplies quickly when USA sanctions kicked in on November 4.