OPEC Hails Nigeria As Oil Price Rises To Record $58pb, 11-month High

Related stories

Anxieties as Ondo Govt Launches Probe into Akeredolu’s Death, Puts Widow Under Scrutiny

By Abiola Olawale The Ondo State Government has announced plans...

Trump Blasts Elon Musk Over Renewed Criticism of US Spending Bill

By Abiola Olawale The feud between United States President Donald...

In Saint Lucia, Tinubu Receives Highest National Honour

By Abiola Olawale President Bola Ahmed Tinubu of Nigeria was...

Oil Prices Dip as OPEC+ Boosts Supply

Crude oil prices fell at the start of...

Ranked: The Biggest Currency Drops So Far in 2025

Key Takeaways The Venezuelan bolívar has fallen the most...
  • Exceeds Output Cut Target

The Organisation of Petroleum Exporting Countries (OPEC) on Wednesday said Nigeria and its other members had achieved 101% adherence to crude oil output cut mandatorily agreed upon last year to curb huge supply glut.

This is coming as oil price rose to $58 per barrel yesterday hitting over 11-month high after major producers showed they were cutting crude output in line with their commitments on restraint.

Brent crude was up $58.71, a 2.18 per cent increase, while US oil gained 2.36 per cent to hit $56.86 a barrel.

Crude production by the OPEC increased for a seventh month in January, after the cartel and its allies agreed to ease supply curbs further, but the growth was smaller than expected.

OPEC Secretary-General, Dr Sanusi, Barkindo, expressed delight about the new development at the opening of the OPEC+ panel meeting on Tuesday.

“With the crude oil market currently switching into backwardation, we are hopeful that 2021 will be a good year for overall demand,” Barkindo said.

At the 26th meeting of the Joint Ministerial Monitoring Committee (JMMC), in Vienna, held via video conference under the chairmanship of Prince AbdulAziz bin Salman, the organisation expressed hope that the oil market will recover in 2021.

OPEC highlighted Nigeria’s efforts at meeting its own output cuts, describing it as commendable.

The committee emphasised the ongoing positive contributions of the Declaration of Cooperation (DoC) in supporting a rebalancing of the global oil market in line with the historic decisions taken at the 10th (extraordinary) OPEC and non-OPEC Ministerial Meeting on 12, April 2020.

The decision was to adjust downwards overall crude oil production, following the extraordinary hit taken by the commodity as a result of the COVID-19 pandemic.

The committee acknowledged the positive performance of participating countries, especially their adherence to the deal made in April last year.

“Overall conformity with the original production adjustments was 101 per cent, reinforcing the trend of high compliance by participating countries.

“The committee noted that since April 2020 ministerial meeting, OPEC and non-OPEC countries have adjusted oil production down by a cumulative 2.1 billion barrels, stabilising the oil market and accelerating the rebalancing process.

“The committee further noted that DoC participants pledged to achieve full conformity and make up for previous compensation short-falls, and stressed the importance of accelerating market rebalancing without delay. The progress of Nigeria in this respect was well noted,” it stated.

According to the cartel, while economic prospects and oil demand will remain uncertain in the coming months, the gradual rollout of vaccines around the world is a positive factor for the rest of the year, boosting the global economy and oil demand.

OPEC urged all participating countries to remain vigilant and flexible given the uncertain market conditions and to stay on the course.

The committee thanked the Joint Technical Committee (JTC) and the OPEC secretariat for their contributions to the meeting, while the next conference of the JMMC is scheduled for March 3, 2021.

'Dotun Akintomide
'Dotun Akintomide
'Dotun Akintomide's journalism works intersect business, environment, politics and developmental issues. Among a number of local and international publications, his work has appeared in the New York Times. He's a winner of the National Youth Service Corps (NYSC) Award. Currently, the Online Editor at The New Diplomat, Akintomide has produced reports that uniquely spoke to Nigeria's experience on Climate Change issues. When Akintomide is not writing, volunteering or working on a media project, you can find him seeing beautiful sites like the sandy beaches that bedecked the Lagos coastline.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

NDN
Latest News
Anxieties as Ondo Govt Launches Probe into Akeredolu’s Death, Puts Widow Under ScrutinyTrump Blasts Elon Musk Over Renewed Criticism of US Spending BillIn Saint Lucia, Tinubu Receives Highest National HonourOil Prices Dip as OPEC+ Boosts SupplyRanked: The Biggest Currency Drops So Far in 2025Our Officers Deployed To Maintain Order Not To Prevent PDP NEC Meeting -- PoliceDon't Let Ganduje's Resignation Divide Us, Dalori Appeals To APC NWC Members, OthersAPC To Hold NEC Meeting On July 24Bode George Warns Tinubu, Decries Police Occupation Of PDP SecretariatClosing Ogoni wounds, opening old onesMy CFR National Honours Award, By Col Abubakar D. Umar (Retd)Chaos Escalate As PDP Shifts BoT Meeting to New Venue Amid Police Siege at Party SecretariatPDP Crisis Deepens As 11 NWC Members Ignore Damagum, Hold NEC MeetingNEC Meeting: Tension Mounts As Police Take Over PDP Secretariat In Abuja2027: Peter Obi Declares Readiness for One-Term Presidency in Atiku, El-Rufai-Led Coalition
X whatsapp