Nigeria supports freezing oil

doha - Nigeria supports plans include Saudi Arabia and Russia to freeze oil production at current levels. That has Oil Minister Emmanuel Kachikwutold said Sunday. Nigeria is the largest oil producer in Africa.

Kachikwutold did say that for the time being should be an exception for Iran and Iraq, two countries emerging opkrabbelen again after years of sanctions or war. Therefore, the production is likely to continue even in the coming months. Not until the summer supply will be tight, he predicted.

Saudi Arabia, Russia, Venezuela and Qatar agreed last week off they freeze their production at the level of January, if other countries do the same. That should lead to some price recovery. Oil prices have fallen recently to the lowest level in twelve years.

The decreases are partly due to the oil cartel OPEC policy, which Saudi Arabia is by far the most powerful country. The Saudis kept the last year and a half conscious production high to reduce prices and thus to eliminate competitors who can not pay the costs come at such low yields.

However, lately tackle dark clouds gathering over the world economy, which is also the future oil demand has become uncertain. In addition, the OPEC countries could not agree on a new production ceiling in December. Prices are therefore further reduced.

This results in many countries, especially Venezuela and Russia, economic problems and heavy holes in the budget. Russia is opposed to Venezuela not a member of OPEC but talked last week or participate in the cartel on measures to prop up the price level.