The price of Bonny Light, Nigeria’s premium oil grade, yesterday, inched up further to $66.04, from $64.00 as the Organisation of Petroleum Exporting Countries, OPEC, continues to remove excess oil from the market.
According to OPEC, the market will likely continue to witness stability in the coming weeks, as the organisation moves to eliminate excess oil from the volatile market.
The global oil cartel, in a statement yesterday, said, “Reaffirming the continued commitment of the participating producing countries in the ‘Declaration of Cooperation’ to a stable market, the mutual interest of producing nations, the efficient, economic, and secure supply to consumers, and a fair return on invested capital, and noting the overall improvement in market conditions and sentiment, and the return of confidence and investment to the oil industry.
Oil producers to decide in June on extending cuts “Accordingly, the Meeting focused their deliberations on recent oil market developments and immediate prospects.
In view of the underlying large uncertainties and its potential implications on the global oil market, the 6th OPEC and non-OPEC Ministerial Meeting hereby decided to extend the decision taken on voluntary production adjustments at the 5th OPEC and non-OPEC Ministerial Meeting on 07 December 2018, for an additional period of nine months from 01 July 2019 to 31 March 2020.
“The Joint Ministerial Monitoring Committee (JMMC) was requested to vigilantly monitor the fair implementation of the abovementioned resolution, in light of the supply and demand balance and the prevailing uncertainties, and report back to the Meeting.” Manuel Salvador Quevedo Fernandez, Venezuela’s People’s Minister of Petroleum, and President of the OPEC Conference, added: “The undying commitment and fierce loyalty displayed by these gentlemen throughout this process have been key to helping us restore balance and stability to the oil market. Indeed, these are men of “timber and caliber”, a fitting expression that my comrade from Nigeria, the Secretary-General, shared with me to describe this type of strong and capable leadership.
“The clear success of this unprecedented energy cooperation has attracted much interest, not only within our industry, but among the global media and other energy stakeholders across the world.
I would like to emphasize here that this framework for cooperation remains open to all oil producers interested in joining our efforts to help maintain a balanced oil market and a sustainable stability.”