The Organisation of Petroleum Exporting Countries (OPEC) is meeting in Vienna on Thursday to among others review oil cut agreements and deal with developments in the global volatile market
The global oil market in the last month has witnessed oil price dropping from $64.30 to $61.20 in the past few days, owed to inability of members to comply with agreements
Members of include, – Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon, Angola, Equatorial Guinea and Congo, Iran, Iraq, Kuwait, Saudi Arabia, Venezuela and Qatar. Another meeting, involving OPEC and non-OPEC members is scheduled to hold the next day, December 6, 2019.
In his remarks, OPEC’s general secretary, Mohammad Sanusi Barkindo, the global market in the last five years have been marked by turbulence and recovery, by crisis and calm, by uncertainty and confidence. He said however that only cooperation on the side of members of OPEC will make the difference.
“OPEC and its non-OPEC partners have turned the tides and ushered in a new and better way of doing business. We need a strategy that involves respect, collaboration and transparency; a strategy that is defined by what we have in common, rather then what makes us different. We need an approach that embraces tolerance and openness to the views of others; a modus operandi that brings out the best in all of us,” the OPEC boss said
Meanwhile, ahead of the OPEC meeting in Vienna Nigeria’s minister of state, petroleum, Chief Timipreye Silva, has said that Nigeria is committed to full implementation of OPEC agreements, including oil cuts. He said that Nigeria had achieved 100% compliance in November, pointing out that this has had brought stability to oil markets.
Reuters quoted Sylva saying he had assured Saudi Energy Minister bin Salman, who is OPEC monitoring ministerial monitoring committee, that Nigeria’s compliance with oil cut agreement had improved substantially.
Whereas Nigeria and Iran are two OPEC members accused of rebuffing agreements on oil production cuts, the body is meeting on Thursday to review agreements, of which deadlines are in March. The meeting in Vienna would also review the outlook for the oil market for the first half of 2020.
Nigeria’s crude production in the third quarter stood at 2.04 million barrels per day, its highest since the first quarter of 2016, which helped its economy grow 2.28% in the three months to September, Nigerian Bureau for Statistics said in its latest report.
By Chibisi Ohakah