May 21, 2024
BREAKING: Nigeria’s Bonny Light price hits $70.15 per barrel
BREAKING: Nigeria’s Bonny Light price hits $70.15 per barrel
– By Alison_Godswill

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BREAKING: Nigeria’s Bonny Light price hits $70.15 per barrel

By Eyo Nsima

The price of Nigeria’s Bonny Light has risen further to $69.37 per barrel from $68.38 per barrel, recorded early this week, as the just-concluded Organisation of Petroleum Exporting Countries, OPEC, and Non-OPEC Ministers meeting continues to impact the market.

At the 17th OPEC and non-OPEC Ministerial Meeting, ONOMM, which held via videoconference, June 1, 2021, the Ministers had reiterated the critical importance of adhering to full conformity, and taking advantage of the extension of the compensation period until the end of September 2021, as requested by some underperforming countries, among other measures to bring about increased market stability.

Consequently, the prices of crudes, including Nigeria’s Bonny Light started to leap, hitting $70.10 per barrel, thus indicating an excess of $30 per barrel as the nation’s 2021 budget was based on $40 per barrel and 1.86 million barrels, including Condensate.

In a statement obtained by The Daily, www.thedaily-ng.com, OPEC had stated: “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 programs 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.”

“In view of current oil market fundamentals and the consensus on its outlook, the Meeting reaffirmed the existing commitment of the participating countries in the DoC to a stable market in the mutual interest of producing nations; the efficient, economic, and secure supply to consumers; and a fair return on invested capital. Reconfirmed the existing commitment of the 10th OPEC and non-OPEC Ministerial Meeting in April 2020, amended in June, September, and December 2020, as well as in January and April 2021 to gradually return 2 million barrels a day (mb/d) of the adjustments to the market, with the pace being determined according to market conditions.

“Reiterated the critical importance of adhering to full conformity, and taking advantage of the extension of the compensation period until the end of September 2021, as requested by some underperforming countries. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting. Reconfirmed the decision made at the 15th OPEC and non-OPEC Ministerial Meeting with regards to production adjustments for the month of July 2021, given the observed market fundamentals.”

It also added: “Emphasized the need to continue to consult and closely monitor market fundamentals and maintain the monthly OPEC and non-OPEC Ministerial Meetings until the end of the decision made at the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020.”

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