Crude oil price remained in a major downtrend and it recently traded below the $53.00 and $52.00 support levels.
To this effect, Nigeria's Minister of State for Petroleum Resources, Dr Ibe Kachikwu, and Saudi Arabian minister of oil and energy, HE Khalid Al-Falih, met in Abuja on Wednesday to discuss how both countries would help to ensure price stability at the upcoming OPEC meeting in addition to seeking areas of collaboration between the two countries.
Saudi Arabia led suppliers to cut production two years ago to curb a glut, then reversed course in June on concerns that U.S. sanctions on Iran could create a shortage.
November still marks the largest one-month drop for oil since the financial recession ten years ago, having lost about 22 percent so far. Igor Sechin, chief executive of the Russian oil company Rosneft and an influential ally of President Vladimir Putin, has aggressively promoted drilling at home and overseas.
The price of oil has fallen by just over a fifth since the end of October and by almost a third over the past two months, in declines not seen since 2008. The nations are in talks over the timing of any reduction in supply, Reuters reported Thursday, a week before producers are due to meet in Vienna next week to discuss policy for 2019.
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".
Oil prices steadied on Friday as expectations that OPEC and Russian Federation would agree some form of production cut next week balanced pressure from swelling inventories. "Other insane people talk of $100 oil", said Pérez, who will represent his country at the OPEC meeting next week.
Putin praised Saudi Crown Prince Mohammed Bin Salman on Wednesday and said Moscow is ready to cooperate further.
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.
While speaking at the Abuja headquarters of the Federal Ministry of Petroleum Resources, Kachikwu made known that Nigeria was now tapping from the vast experience of Saudi Arabia. EIA says US crude oil inventories are now 7 percent above the five-year average for this time of year.
"Furthermore, our partners are helping us by introducing all these unlawful restrictions and violating principles of the global trade, because the whole world sees the dollar monopoly is unreliable; it is risky for many, not only for us", he said.
"Thank you to Saudi Arabia, but let's go lower!"
By August 2018, Saudi Arabia's production was up by 630,000 barrels per day compared with June 2014 and Russia's output had climbed by 525,000 bpd.