You are here: HomeBusiness2021 07 20Article 458776

Business News of Tuesday, 20 July 2021

Source: thenationonlineng.net

Brent crude dips to $71.16 on OPEC’s  decision

The Brent crude price yesterday dropped to $71.16 per barrel, shedding $2.45 per barrel.

It was a 3.3 per cent decline in  price following the Organisation of Petroleum Exporting Countries’ (OPEC) decision to increase its production output by 0.4million monthly from  next month until the phasing out of 5.8mbd production adjustment in December, this year assess market developments and Participating Countries’ Performance.

OPEC had in a statement on Sunday announced a new output quota, increasing Nigeria’s to 1.829m/d from April 2022 to May 2022.

The statement on Declaration of Cooperation issued from the 19th OPEC and non-OPEC Ministerial Meetings in Vienna, Austria.

The OPEC added that it was in view of the oil market fundamentals and the consensus on its outlook.

The statement noted that the Participating Countries: reaffirmed “the Framework of the Declaration of Cooperation, signed on December 10, 2016 and further endorsed in subsequent meetings, including on April 12, last year.

Extend the decision of the 10th OPEC and non-OPEC Ministerial Meeting (April 2020) until the 31st December 2022.”

It decided to adjust upward their overall production by 0.4 mb/d on a monthly basis starting August 2021 up until phasing out the 5.8 mbd production adjustment, and in December 2021 assess market developments and Participating Countries’ performance.

The statement added that the organisation will continue to adhere to the mechanism to hold monthly OPEC and non-OPEC Ministerial Meetings for the entire duration of the Declaration of Cooperation, to assess market conditions and decide on production level adjustments for the following month, endeavoring to end the production adjustment by the end of
September 2022 subject to market conditions.

The statement noted that it decided to adjust effective May 1, 2022, the baseline for the calculations of the production adjustments according to the attached table.

Reiterate the critical importance of adhering to full conformity and taking advantage of the extension of the compensation period until the end of September 2021.

It submitted that compensation plans should be submitted in accordance with the statement of the 15th.