Nigerian oil minister speaks on possible risks to new oil deal

Nigeria's Minister of State for Petroleum Resources, Ibi Kachuku, recently joined CNBC to discuss the risks that could impact the recent oil deals aimed at improving market prices. Kachiku expressed optimism about the direction the numbers are trending, with hopes of getting closer to the desired outcome. He acknowledged the importance of adherence to the agreements and emphasized the consensus among OPEC and non-OPEC members to work together for the greater benefit of the economy. One of the key concerns raised during the interview was the potential threat posed by shell producers increasing production, potentially affecting the market shares of traditional OPEC members. Kachiku also highlighted the importance of non-OPEC countries fulfilling their commitments to the deal to maintain equilibrium in production. He commended Saudi Arabia for its leadership in rallying support for the cuts and expressed hope for continued cooperation and adherence to the agreements. Reflecting on the past, Kachiku acknowledged the missed opportunities that could have benefitted Nigeria's economy had similar deals been struck earlier. However, he recognized the valuable lessons learned and the necessity of collective action to stabilize oil prices and prevent economic downturns. In conclusion, Kachiku affirmed OPEC's relevance in the global oil market and the significance of the recent production cuts in restoring credibility and unity among member countries. The Minister's insights shed light on the intricacies of the oil markets and the ongoing efforts to safeguard the interests of both OPEC and non-OPEC members.