May 30, 2024
BREAKING: Nigeria’s Bonny Light hits $56.95 per barrel
BREAKING: Oil prices fall to $73.07 per barrel despite dropping inventory
– By Alison Godswill

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BREAKING: Nigeria’s Bonny Light hits $56.95 per barrel

By Eyo Nsima

 

The price of Nigeria’s Bonny Light has risen to $56.95 per barrel over the American Petroleum Institute (API) favourable report.

 

Consequently, the prices of many crudes, including Bonny Light rose significantly in the international market.

 

Also, the price of Brent rose to $58.17 per barrel, recording over $2.0 in excess of $56.0 recorded the previous day.

 

Furthermore, the price of the Organisation of Petroleum Exporting Countries, OPEC Basket also rose from $54.0 to $55.13 per barrel in the market.

 

A source said, contrary to expectation, the ‘API reported a draw in gasoline inventories of 240,000 barrels for the week ending January 29—compared to the previous week’s 3.058-million-barrel build’.

 

At the end of its 13th OPEC and non-OPEC Ministerial Meeting (ONOMM), held via videoconference, concluded on Tuesday, 5 January 2021, OPEC had stated that “The Meeting, which reconvened following an initial round of discussions on 4 January, reaffirmed the continued commitment of the participating countries in the Declaration of Cooperation (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.

“In addition, the Meeting recalled the decision taken by all DoC participating countries at the 10th (Extraordinary) ONOMM on 12 April 2020 to adjust downwards overall crude oil production, the unanimous decisions taken at the 11th ONOMM on 6 June 2020, and the outcomes of the 12th ONOMM on 3 December 2020.

 

“The Meeting highlighted the unprecedented events of 2020 and shocking impact of the COVID-19 pandemic on the world economy and markets and commended the DoC participating countries for undertaking the largest and longest crude oil production adjustments in history in response to the exceptional challenges and market conditions caused by the pandemic.

“It pointed out that rising infections, the return of stricter lockdown measures, and growing uncertainties have resulted in a more fragile economic recovery that is expected to carry over into 2021. The Meeting recognized that market sentiment has been buoyed recently by vaccine programs and improved asset markets, but underscored the need for caution due to prevailing weak demand and poor refining margins, the high stock overhang, and other underlying uncertainties.’

 

It added: “The Meeting acknowledged the need to gradually return 2 mb/d to the market, with the pace being determined according to market conditions. It reconfirmed the decision made at the 12th ONOMM to increase production by 0.5 mb/d starting in January 2021 and adjusting the production reduction from 7.7 mb/d to 7.2 mb/d. The adjustments to the production level for February and March 2021 will be implemented as per the distribution detailed in the attached table. Production adjustments for April and subsequent months will be decided during the monthly ONOMM following the criteria agreed upon in the 12th ONOMM.”

 

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