Bonny Light price hovers at $38.70 as OPEC puts compliance at 87%

Bonny Light price hovers at $38.70 as OPEC puts compliance at 87%

The price of Bonny Light, Nigeria’s premium oil grade, which had risen to $40 per barrel last week, dropped to $38.70 following the prevalence of excess crude in the international market.

 

This was even as the Organisation of Petroleum Exporting Countries, OPEC, emerged with a report, stating that it achieved 87 per cent compliance with its oil cut directive in May 2020.

 

In a statement obtained by Vanguard, the organisation, stated: “The Committee took note of the overall conformity of 87 per cent for the month of May 2020.

 

“It also observed individual country conformity levels and reiterated the critical importance that all Participating Countries achieve their 100 per cent level, and make up for any monthly shortfalls in the months of July, August, and September.

 

“It welcomed the expressed commitments from those countries below the 100 per cent May conformity level and specific compensation plans highlighting how this will be accommodated, and delivered, between July and September.

 

“The Committee emphasized the critical importance of adhering to full conformity, and compensating the overproduced volumes in the months of May and June, during the months of July, August and September 2020, in accordance with the Statement of the 11th OPEC and non-OPEC Ministerial Meeting of the DoC (6 June 2020), in particular with reference to the five elements agreed.”

 

The organisation, which held its 19th Joint Ministerial Monitoring Committee (JMMC) via videoconference, on Thursday, 18 June 2020, under the Chairmanship of HRH Prince Abdul Aziz Bin Salman, Saudi Arabia’s Minister of Energy, and co-Chair HE Alexander Novak, Minister of Energy of the Russian Federation, stated: “The Committee reviewed the monthly report prepared by the Joint Technical Committee (JTC) and recent developments in the global oil market, as well as immediate prospects for the remainder of 2020 and into 2021.

 

More in BUSINESS

 

World Environment Day: Lafarge Africa commits to sustainable practices

 

COVID-19: IFC invests $100m in Nigeria’s Zenith Bank to support SMEs

New electricity tariff, VAT rate to sustain upward pressure on prices

New electricity tariff, VAT rate to sustain upward pressure on prices

Nigeria’s petroleum industry long overdue for reforms — Olorunsola

Nigeria’s petroleum industry long overdue for reforms — Olorunsola

 

Laursen resumes work as APM Terminals Nigeria Country Manager

ALSO READ: Ten new facts why Bonny Light price hits the roofs at $34.11 per barrel

“The JMMC reiterated the critical role that the ‘Declaration of Cooperation’ (DoC) continues to play in supporting oil market stability and economic recovery, in the face of the COVID- 19 pandemic shock and the subsequent severe global economic downturn.

 

“In this regard, it recalled the historic decision taken by all Participating Countries in the DoC at the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting on 12 April 2020 to adjust downwards overall crude oil production, and the decisions taken at the recent 179th Meeting of the OPEC Conference and the 11th OPEC and non-OPEC Ministerial Meeting on 6 June 2020.

 

“This included extending the first phase of the production adjustments by a further month, now till 31 July 2020, and subscribing to the concept of compensation by those countries who were unable to reach full conformity (100%) in May and June, to accommodate the underperformed volumes in July, August, and September, in addition to their already agreed production adjustment for such months.”

 

Similarly, it stated: “The Committee would like to thank those participants, namely Iraq and Kazakhstan, which have already submitted their compensation schedules and agreed to give other underperforming participants, which have not yet submitted final plans, until next Monday 22 June 2020 to submit their schedules for compensation to the OPEC Secretariat.

 

“Furthermore, the Committee mandated the Secretariat to reach out to all the underperforming Participating Countries to submit their schedules for compensation by the above mentioned date.

 

“The Committee stressed that the attainment of 100 per cent conformity from all Participating Countries is not only fair and equitable but vital for the ongoing and timely rebalancing efforts and helping deliver sustainable oil market stability.

 

“The Committee stated their appreciation of additional voluntary contributions totalling 1.2 mb/d made by Saudi Arabia, the UAE, Kuwait and Oman in the month of June 2020.”

40 Comments

  1. Reply

    Ok

  2. Profile photo ofcelestine

    Reply

    Nice article

  3. Reply

    Thanks for sharing

  4. Reply

    Good

  5. Reply

    This is interesting

  6. Reply

    Thanks for sharing

  7. Reply

    Good

  8. Reply

    Interesting piece

  9. Reply

    Nice one

  10. Reply

    Interesting

  11. Reply

    Very good

  12. Reply

    Great one

  13. Reply

    Thanks for the update

  14. Reply

    Thanks for sharing

  15. Reply

    Good

  16. Profile photo ofChukwucee

    Reply

    Resourceful information

  17. Reply

    Nice

  18. Reply

    Nice update

  19. Reply

    Jumboearn paid platform for entertainment and news update

  20. Reply

    Good

  21. Reply

    This is good to know

  22. Reply

    This is good

  23. Profile photo ofSommycruz

    Reply

    Nice one

  24. Reply

    Interesting

  25. Reply

    Okay

  26. Reply

    This was interesting update

  27. Reply

    Nice update

  28. Reply

    Good to know

  29. Reply

    Thanks for the information

  30. Reply

    classic

  31. Profile photo ofItz Kvng Twitch

    Reply

    Very interesting

  32. Reply

    Nice information

  33. Reply

    This is really good and interesting to know

  34. Reply

    Nyx update

  35. Reply

    That’s good to know

  36. Reply

    That’s good to know

  37. Reply

    Thanks fir sharing

  38. Reply

    Very bad

  39. Reply

    Good to know

  40. Reply

    Cool information…..thanks for the update

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these <abbr title="HyperText Markup Language">HTML</abbr> tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>