Africa Press-Nigeria:
DESPITE the oil cut initiative of the Organisation of Petroleum Exporting Countries (OPEC) and other oil producers, price of Bonny Light, Nigeria’s premium oil grade only rose marginally to $23.25 per barrel from $23.19 where it was yesterday.
The prices of other crudes, including Brent and OPEC Basket also remained low at $32.05 and $21.19 per barrel respectively.
Investigations showed that it would take a much longer time for the market to respond to the oil cut as the market was saturated with excess oil from many nations, including Mexico, which has already opted out of the accord.
Moved to tackle the prolonged instability in the market, the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held via video conference, on Sunday, April 12, 2020, had agreed to, “Adjust downwards their overall crude oil production by 9.7 mb/d, starting on May 1, 2020, for an initial period of two months that concludes on June 30, 2020. For the subsequent period of 6 months, from July 1, 2020 to December 31, 2020, the total adjustment agreed will be 7.7 mb/d.”
