BREAKING: Nigeria’s Bonny Light hits $65.53 per barrel, highest in 2021
BREAKING: Nigeria’s Bonny Light price hits $70.15 per barrel
– By Alison Godswill

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BREAKING: Nigeria’s Bonny Light hits $65.53 per barrel, highest in 2021

 

By Alison Godswill

For the first time in 2021, the price of Nigeria’s Bonny Light has risen to $65.53 in the international market, as the Organisation of Petroleum Exporting Countries, OPEC, and its allies continue to cut remove excess oil from the market.

 

The crude was as low as $40 towards the end of 2020, and rose thereafter to $62, before climbing further to the current price.

 

Close market watchers said the feat constitutes a big boost to the nation’s 2021 budget, which was benchmarked on $40 per barrel, and 1.8 million barrels per day output, including condensate.

 

However, speaking at the 11th IEA-IEF-OPEC Symposium on Energy Outlooks, 17 February 2021, via videoconference, HE Mohammad Sanusi Barkindo, OPEC Secretary-General, said: “In response to this unprecedented situation, OPEC knew it had to act. Thankfully, we did not need to reinvent the wheel. We turned to the mechanism that had helped us emerge out of the 2015-2016 oil market downturn: the ‘Declaration of Cooperation.’

 

“Together with our partners and ably supported by the Saudi Arabian Presidency of the G20, we agreed on 12 April 2020 to the largest and longest-in-duration production adjustments in the industry’s history.

 

“Thereafter, participating countries have subsequently adjusted these decisions to proactively anticipate market developments, improve the core principles upon which our enterprise was founded (transparency, equity, and fairness) and compensate for over-produced volumes. High conformity levels with these production adjustments have been a testimony to the depth of our commitment.

 

“Consequently, we have seen a recovery in the industry that has multiplier benefits for the global economy. While there are grounds for optimism that 2021 will be the year of recovery, there are many uncertainties ahead. As the IMF recently stated, “Much now depends on the outcome of this race between a mutating virus and vaccines to end the pandemic, and on the ability of policies to provide effective support until that happens. There remains tremendous uncertainty and prospects vary greatly across countries.”

 

He added: “The DoC partners are determined to play their part and provide that effective policy support. In doing so, we will always act in the interests of producers and consumers. Energy outlooks are an essential component of our Organizations’ work. The comprehensive, accurate and fact-based analysis is crucial in supporting policy-makers in making informed decisions, especially in the current circumstances.

The pandemic has complicated the process of preparing energy outlooks. In such circumstances, this inter-agency forum has once again proven itself invaluable as a means to exchange data, analysis, information, on the short-, medium and longer-term outlooks. We can even ‘blow-off steam’ about the frustrations of preparing outlooks! The wisdom of the trilateral work programme adopted in Cancun in March 2010 is further vindicated by the need for dialogue, cooperation, and engagement in challenging times!”

 

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