The Organization of the Petroleum Exporting Countries (OPEC) has firmly denied a report suggesting that crude oil prices could fall to $50 per barrel, allegedly based on comments from Saudi Arabia’s Oil Minister, Prince Abdulaziz bin Salman.
The report, published by the Wall Street Journal on Wednesday, claimed that the minister warned that prices might plummet if OPEC members, including Nigeria, fail to adhere to their production cut agreements. However, OPEC responded swiftly, labeling the report as false and completely unfounded.
In a statement shared on their official X account, OPEC clarified that no conference call occurred last week, nor has there been any call or video conference since the last OPEC+ meeting on September 5. The organisation emphasized that the attributed statements from unnamed sources were entirely baseless and fabricated.
OPEC’s secretariat stated, “With reference to the Wall Street Journal (WSJ) article, dated October 2, 2024, titled:‘Saudi Oil Min Said Prices May Fall to $50/B if Others Cheat, Sources Say,’ the OPEC Secretariat categorically refutes the claims made within the story as wholly inaccurate and misleading.”
The organisation further elaborated, “The article falsely reported a conference call in which the Saudi Arabian energy minister allegedly warned OPEC+ members of a potential price drop to $50 per barrel should they fail to comply with agreed production cuts. It also attributed an alleged quote to the minister: ‘Some better shut up and respect their commitments toward OPEC+.’ These claims are entirely unfounded.”
While the oil sector contributes only a tiny fraction to Nigeria’s GDP, it remains a crucial foreign exchange and revenue source for the federal government. The fluctuations in international crude oil prices significantly impact the country’s fiscal health. Increasing oil prices can increase revenues, supporting budget allocations for essential sectors such as infrastructure, education, and health. Conversely, a sharp decline in prices could result in revenue shortfalls, posing a severe threat to an already fragile economy, as has been experienced in recent years.
