SAT, JUN 06 2020-theG&BJournal- Nigeria said that it subscribes to ‘’the concept of compensation by countries who are unable to attain full conformity in May and June to accommodate it in July, August and September,’’ a statement that reflects the agreement reached today at the 179th meeting of the OPEC Conference where members countries agreed to stick with current oil production cut level until the end of July. The meeting were originally planned for 9 and 10 June 2020, respectively.
Participating Countries at the end of today’s gathering agreed the option of extending the first phase of the production adjustments reached in May and June by one further month. They subscribed to the concept of compensation by those countries who were unable to reach full conformity (100 per cent) in May and June, with a willingness to accommodate it in July, August and September, in addition to their already agreed production adjustment for such months and agreed without dissent that the full and timely implementation of the agreement remains inviolable, based on the five key elements, and endorsed the ‘Statement on the Declaration of Cooperation.
As the meeting got under way, Iraq which had foot dragged on compliance to the agreed cut made a u-turn to pledge its full commitment to the production adjustments reached by participating countries in the Declaration of Cooperation.
Oil prices reacted positively to the news Friday when it became clear OPEC and its allies were ready to tow along the measures on the back of persistent weak oil prices and the struggle of global economies to cope with the impact of the coronavirus pandemic. Brent crude oil gained more than $2 per barrel to $42.30 while West Texas Intermediate settled at $39.50 mark
The OPEC Secretary General Mohammad Barkindo while delivering his remarks to the 11th OPEC and non-OPEC Ministerial meeting underscored the importance of the April agreement as a significant mechanism in rebalancing and stabilizing the global oil market.
‘’The production adjustments are by far the largest and longest in the history of OPEC, OPEC+ and the global oil industry,’’ Barkindo said. ‘’The unparalleled commitment, and the unity and courage for the common cause of oil market stability has been positive.’’
The Ministerial Meeting called on all major oil producers to proportionally contribute to the stabilization of the oil market, taking into consideration the substantial effort made by the OPEC and non-OPEC Participating Countries of the DoC.
The 23 OPEC members agreed to a production cut on April of 9.7 million barrels per day beginning in May through the end of June. Another 7.7 bpd will be cut from July to the end of 2020 and from January 2021 through April 2022 a further 5.8 million barrels will be cut
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