THE price of Bonny Light, Nigeria’s premium oil grade, yesterday, further increased to $70.15 per barrel from $69.38 per barrel, recorded the previous day, as the just-concluded Organisation of Petroleum Exporting Countries, OPEC, and Non-OPEC Ministers meeting continues to impact the global oil market.
Oil ministers, who attended the 17th OPEC and non-OPEC Ministerial Meeting, ONOMM, which held via videoconference, June 1, 2021, had, among other things, stressed the importance of adhering to full conformity to output quota, and taking advantage of the extension of the compensation period until the end of September 2021, as requested by some underperforming countries.
Expectedly, the prices of crudes, especially Bonny Light, started to rise, leading to price premium of $30 per barrel against the nation’s 2021 budget benchmark of $40 per barrel.
In a statement obtained by Vanguard, OPEC said: “The Meeting noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement and OECD stocks falling as the economic recovery continued in most parts of the world as vaccination programmes accelerated.
The Meeting welcomed the positive performance of Participating Countries in the Declaration of Cooperation (DoC).
Overall conformity to the production adjustments was 114% in April (including Mexico), reinforcing the trend of high conformity by Participating Countries.”