A meeting held in Doha, Qatar, mid-April between the world’s biggest oil producers ended without a deal to freeze oil production, and this puts Nigeria and other cash-strapped oil producers in more trouble, according to some analysts cited by All Africa.
The breakdown of the talks will almost certainly lead to another collapse in oil prices until June when another meeting of the producers is due, Daily Trust wrote.
Oil producers like Iraq, Nigeria and Venezuela are suffering severe economic pain. At current export levels, these three OPEC members in the cartel are losing millions of dollars in gross daily revenue at today’s prices compared to when they were around $115 per barrel in mid-2014.
Nigeria, which has been instrumental in the buildup to the failed Doha meeting, has experienced a drastic drop in oil revenue. However, had the deal sailed through, it could have potentially raised oil price higher, which is what the country desires.