MARKET UPDATE: Oil prices hover at $74 per barrel as economy, supply concerns impact
By Eyo Nsima
The prices of many crudes hovered this Monday morning at $74 per barrel as the global economy and supply concerns continue to dominate or impact the market.
For instance, the price of Brent usually used to benchmark other prices stood at $74.03 per barrel while the price of others, including WTI remained even lower at $69.33 per barrel.
A survey of the market by The Daily, www.thedaily-ng.com, indicated that the global oil market is still haunted by some uncertainties and speculation that tend to have total grip of the market.
However, in its recent meeting, the Organisation of Petroleum Exporting Countries, OPEC and its allies, popularly known as OPEC+, expressed commitment toward achieving market stability.
In a statement obtained by The Daily, www.thedaily-ng.com, OPEC+, stated: “In light of the continued commitment of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market, and to provide long-term guidance for the market, and in line with the successful approach of being precautious, proactive, and pre-emptive, which has been consistently adopted by OPEC and non-OPEC Participating Countries in the Declaration of Cooperation, the Participating Countries decided to reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings; as well as the Charter of Cooperation, signed on 2 July 2019.
“Adjust the level of overall crude oil production for OPEC and non-OPEC Participating Countries in the DoC to 40.46 mb/d, starting 1 January 2024 until 31 December 2024, which is to be distributed as per the attached table.
“Reaffirm and extend the mandate of the Joint Ministerial Monitoring Committee (JMMC) and its membership, to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC and this Statement, assisted by the Joint Technical Committee (JTC) and the OPEC Secretariat. The JMMC is to be held every two months.
“Hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every six months in accordance with the ordinary OPEC scheduled conference.
“Grant the JMMC the authority to hold additional meetings, or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, whenever deemed necessary.
“Reaffirm that the DoC conformity is to be monitored considering crude oil production, based on the information from secondary sources, and according to the methodology applied for OPEC Member Countries.
“Reiterate the critical importance of adhering to full conformity, and subscribe to the concept of compensation by those countries that produce above the required production level as per the attached table, in addition to their already decided production levels.”
OPEC+ also planned to, “Hold the 36th OPEC and non-OPEC Ministerial Meeting on Sunday 26 November 2023, in Vienna.”
