Oil producers set time and place for second production freeze meeting - Nigeria’s oil minister

Billy Bambrough
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Opec member Nigeria has been hard hit by the 70 per cent slide in the oil price since the summer of 2014 (Source: Getty)

The second meeting of the Organization of Petroleum Exporting Countries (Opec) and non-Opec producers are planning to meet in Russia on 20 March to continue talks on freezing oil output, according to Nigeria’s oil minister Emmanuel Kachikwu.

At the first meeting in February, brokered by de facto Opec leader Saudi Arabia; Russia, Qatar and Venezuela agreed they would cap their production at January levels if other oil producing countries followed suit.

Oil investors have taken the preliminary agreement as a sign the countries could later reduce output to clear the global supply glut that has forced down prices.

Iran has poured scorn on the deal however, calling it "ridiculous" and "laughable" as it vows to continue to raise it's production.

There has also been no word from Iraq, the only other major oil exporter that's intending to increase its production.

Kachikwu claimed at a conference in Abuja, Nigeria’s capital, there will be a “dramatic price movement” when the meeting takes place. “Both the Saudis and the Russians, everybody is coming back to the table.”

The oil price pulled back from loses earlier in the day in evening trading last night. It had been down on the news that US stockpiles rose over the last week at four times forecasts to highs not seen since April last year.

International benchmark Brent crude was trading at $37.19, while US oil was going for $34.84.

Earlier in the week the oil price has been sent sharply higher by comments from Russian president Vladimir Putin, promising Russian oil companies will not increase output this year.

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