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OPEC applauds improving oil market conditions since January — President 

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) Mr Salvador Fernandez, the President, Organization of the Petroleum Exporting Countries (OPEC) on Monday applauded the improving oil market conditions being recorded since January.

 Fernandez made his thoughts known in Vienna at the opening of the 176th meeting of the bloc while welcoming delegates to the conference. 

 The OPEC President said that the improvement being recorded was in sharp contrast to the turbulence and volatility experienced in the fourth quarter of 2018. 

He, however, noted the recent increased uncertainty in trade negotiations, monetary policy, and geopolitical issues confronting the bloc, adding that there were clear signs of “economic bearishness”.

“Although this is now projected to rise by 1.14 million barrels per day and alongside this is an assessment for non-OPEC oil supply in 2019 to grow at a pace of 2.14 million barrels a day,” he stated. 

“OPEC recognises that the challenge of balancing the oil market and maintaining stability is a continuous process and shared responsibility.

“To this end, we need to remain vigilant in monitoring the market in order to be flexible and agile in taking necessary actions,” he said. 

He, however, lauded the achievements of OPEC member countries’ “Declaration of Cooperation”  in pursing a balanced, stable, and sustainable global oil market since 2017.

The News Agency  of Nigeria reports that the two-day meeting is expected to also determine an extension of the global oil production cut.

Nigeria, Saudi Arabia and  Russia are among countries rooting for a nine-month extension of global oil cut as stipulated under the “Declaration of Cooperation” by OPEC.

The “Declaration of Cooperation” was an outcome of the Joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting held on Dec. 10, 2016 and was effective for an initial period of six months.

The declaration constitutes an unprecedented milestone in the history of the OPEC because for the first time ever, the member countries of the organization coordinated with 11 non-members in a concerted effort to accelerate the stabilization of the global oil market through voluntary production adjustments, which amounted to approximately 1.8 million barrels per day.

The Second Joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting, which was held on May 25, 2017 decided to extend the voluntary production adjustments for another nine months beginning July 1, 2017.

The sustainable oil market stability sought by the declaration is in the interests of producers, consumers, investors, and the global economy at large.

At the third joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting, held on Nov. 30, 2017, it was agreed to amend the Declaration of Cooperation so that it will take effect for the entirety of 2018.

The core principles of transparency, equity and fairness which have underpinned the Declaration of Cooperation infuse all aspects of OPEC’s interactions with its non-OPEC oil producing partners, including cooperation at a research and technical level. 

Edited by Emmanuel Yashim

Foreign

Equatorial Guinea’s hydrocarbons minister wants OPEC+ to proceed with easing cuts to 7.7mbd

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The group of OPEC and non-OPEC oil producers should proceed with easing production cuts to 7.7 million barrels a day starting in July, Equatorial Guinea’s minister of mines and hydrocarbons, Gabriel M. Obiang, said.

Obiang told Sputnik in an interview that the volume of reduction would depend on the outcome of upcoming meetings.

On April 12, OPEC+ agreed to cut production by 9.7 million barrels per day from May-June.

Under the deal, the output will be reduced by 7.7 million barrels per day from July until the end of 2020, and by 5.8 million barrels daily from January 2021 to April 2022.

However, sources have told Sputnik that the current decrease could be extended.

Yes. But everything will depend on the meeting,” Obiang said when asked if the producers should stick to the April agreements on easing the cuts starting in July.

He added that there was “no need for more cuts.”

The minister noted that Equatorial Guinea, as a member of OPEC, would look into the recommendations of the cartel on the future cuts, as the OPEC Secretariat was responsible for monitoring supply and demand.

“I think it’s better to wait for the full monitoring. And we do recognise that in summer there could be more activity, there is more easing of the lockdown, there is much more movement.

“The airline industry is definitely going to be critical. If the airline business really takes off, that could be a game-changer.

“But if we still have that restriction that we are having, we’ll probably be forced to continue cuts in production, because it’s definitely the only alternative that we will have.

“We don’t have the place in storages, and we don’t have a place to sell it,” Obiang underlined.

The OPEC

+ countries are expected to meet next week to discuss the situation on the market and whether they should proceed with the 7.7 mbd cut starting in July or if the figure needs some adjustment.

However, it is still not clear whether the OPEC+ meeting will take place from June 9-10 or will be pushed to an earlier date.

Edited By: Emmanuel Yashim (NAN)

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Economy

Oil prices edge down as wary traders eye upcoming OPEC+ meeting

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Oil prices edged down on Monday as traders took profits, with the Organisation of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.

Brent crude LCOc1 fell 15 cents, or 0.4 per cent, to $37.69 a barrel, in the first day of trading in the contract with August as the front month.

West Texas Intermediate (WTI) crude futures CLc1 for July delivery were at $35.36 a barrel, down 13 cents, or 0.4 per cent, by 0419 GMT.

The price falls come after front-month Brent and WTI prices posted their strongest monthly gains in years in May.

Gains were boosted by OPEC crude production dropping to its lowest in two decades, with demand expected to recover as more nations emerge from coronavirus lockdowns.

“The focus is very much on OPEC+,’’ OCBC economist, Howie Lee, said, referring to OPEC and its allies including Russia.

OPEC+ agreed in April to reduce output by an unprecedented 9.7 million barrels per day (bpd) in May and June after the coronavirus pandemic ravaged demand.

“We might see a cautious pullback in (crude) prices given that downstream prices haven’t caught up … but if OPEC+ does come up with a three-month extension, there’s a possibility that prices may hit the $40 level,’’ Lee said.

Still, tensions between the United States and China weighed on global financial markets, while traders are also keeping an eye on riots over the weekend that have engulfed major United States cities.

Saudi Arabia is proposing to extend record cuts from May and June until the end of the year, but has yet to win support from Russia, sources have told Reuters.

Algeria, which currently holds the OPEC presidency, has proposed that an OPEC+ meeting planned for June 9-10 be brought forward to facilitate oil sales for countries such as Saudi Arabia, Iraq and Kuwait.

Russia has no objection to the meeting being brought forward to June 4.

“It’s been widely interpreted as likely to lead to an extension of the current production cuts,’’ CMC Markets’ Chief Market Strategist, Michael McCarthy, said.

“Oil prices have come down slightly in our session but they’re still at elevated levels.

“I suspect that’s the key driver of prices on Friday night and should keep prices reasonably well supported today.’’

Meanwhile supply in North America is also falling as data from Baker Hughes Co showed that the United States and Canada oil and gas rigs count dropped to a record low in the week to May 29.

AIB


Edited By: Abdulfatah Babatunde (NAN)

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Oil & Gas

OPEC mourns ex-GMD of NNPC Baru

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The Organisation of Petroleum Exporting Countries (OPEC), says the death of Dr Maikanti Baru, former Group Managing Director of NNPC,  is a huge loss to the oil and gas sector in Nigeria.

Dr Mohammed Barkindo, Secretary-General, disclosed this in a condolence message released in Abuja on Saturday.

News Agency of Nigeria (NAN) reports that Baru died after a brief illness in Abuja as confirmed by the spokesman of NNPC, Dr Kennie Obateru.

Barkindo described Baru as a hardworking and committed person who believed in transparency and accountability.

Dr Maikanti Baru was a good and hardworking professional whom l had absolute confidence in both as his colleague in NNPC and, later, as GMD.

As GMD of NNPC he repositioned the Corporation and the Nigeria’s oil Industry.

“He was workaholic, cerebral, humane, godly and kind-hearted,” he said.

He prayed God almighty to grant his soul rest and expressed condolences to the family, the oil Industry and Nigeria at large.

NAN reports that Baru, 60, was at the helm of NNPC affairs from July 4, 2016 to July 7, 2019 when he retired.

He was born in July 1959 in Misau, Bauchi State, and attended Federal Government College, Jos, for his secondary education where he graduated in 1978.

He obtained his bachelor of engineering degree from Ahmadu Bello University, Zaria, in 1982 and doctorate in Computer Aided Engineering from the University of Sussex.

Edited By: Chidinma Agu/Donald Ugwu (NAN)

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Foreign

OPEC daily basket price stands at 28.45 USD per barrel

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The Organization of the Petroleum Exporting Countries’ (OPEC) daily basket price stood at 28.45 U.S. dollars a barrel on Thursday, compared with 29.03 dollars on Wednesday, according to OPEC Secretariat calculations released on Friday.

Also known as the OPEC reference basket of crude oil, the OPEC basket, a weighted average of oil prices from different OPEC members around the world, is used as an important benchmark for crude oil prices.

(XINHUA)

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Foreign

OPEC daily basket price stands at 29.03 USD per barrel

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The Organization of the Petroleum Exporting Countries’ (OPEC) daily basket price stood at 29.03 U.S. dollars a barrel on Wednesday, compared with 29.75 dollars on Tuesday, according to OPEC Secretariat calculations released on Thursday.

Also known as the OPEC reference basket of crude oil, the OPEC basket, a weighted average of oil prices from different OPEC members around the world, is used as an important benchmark for crude oil prices.

(XINHUA)

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Foreign

China, OPEC agree to work closely to stabilise oil market suffering from COVID-19

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China, one of the largest consumers of oil in the world, and the Organisation of the Petroleum Exporting Countries (OPEC) have agreed to work together to stabilise the oil market.

OPEC said this on Wednesday during a bilateral meeting.

The oil market is suffering from falling demand and low prices in light of the coronavirus pandemic.

The “milestone” talks between the Chinese delegation and OPEC Secretary General Mohammad Barkindo were held on Thursday in an online format, according to the cartel.

“The meeting reflected on the impact of the COVID-19 pandemic on the global economy and oil market, as well as China’s domestic oil market, the rebalancing process of oil supply and demand, and China’s solutions for and optimisation of the oil and gas trade system.

“The meeting also reached a consensus on the importance of energy security and maintaining stability in the energy markets, strengthening collaboration between OPEC and China,” OPEC said in a statement.

Oil prices fell dramatically earlier this year against the background of the global coronavirus outbreak, which resulted in the implementation of lockdown measures and the suspension of production.

As China and a number of other countries are now resuming domestic production, the oil market is expected to stabilise by the end of 2020.

The OPEC+ countries, as well as oil producers from a wider G20 group of nations, such as the U.S., Brazil and Canada, reached the oil production cut deal in mid-April.

The deal envisages a reduction in oil production by the OPEC+ group by 9.7 million barrels per day for two months starting on May 1, and possibly up to 15 million barrels daily with the G20 nations taken into account.

Edited By: Emmanuel Yashim (NAN)

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Foreign

Global oil demand to contract by 9 mln barrels per day in 2020: OPEC

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The Organization of the Petroleum Exporting Countries (OPEC) revised down its forecast of global oil demand for 2020, predicting a 9.07 million barrels per day (b/d) year-on-year contraction in its monthly report published on Wednesday.

The Organization for Economic Co-operation and Development (OECD) oil demand was revised lower by 1.20 million b/d, while non-OECD oil demand growth was adjusted down by 1.03 million b/d, for total oil demand to reach 90.59 million b/d, according to the report.

Crude oil prices recorded a second sharp monthly drop in April amid an increasing oil surplus, it said. The OPEC Reference Basket (ORB) value plummeted by 16.26 U.S. dollars per barrel, or 48.0 percent month-on-month, to 17.66 dollars per barrel, the lowest monthly level since December 2001.

The report expected that the worst contraction in major oil demand centers around the world to take place in the second quarter of 2020, mostly in OECD Americas and Europe, with transportation and industrial fuels affected the most.

It pointed out that demand contraction in 2020 can be mitigated with sooner-than-expected easing of COVID-19 restriction measures and faster response of economic growth to stimulus packages.

OPEC also predicted that the world economy will decline by 3.4 percent in 2020, following global economic growth of 2.9 percent in 2019.

The U.S. economy is forecast to contract by 5.2 percent, while an even larger decline is expected in the Euro-zone, where economic activity is forecast to fall by 8.0 percent in 2020.

China‘s 2020 GDP is forecast to grow by 1.3 percent, recovering from a sharp contraction in the first quarter.

Russia’s economy is forecast to contract by 4.5 percent in 2020, not only due to COVID-19, but also because of the considerable decline in oil prices.

(XINHUA)

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Foreign

OPEC daily basket price increases to 14.36 USD per barrel

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The Organization of the Petroleum Exporting Countries (OPEC) daily basket price increased to 14.36 U.S. dollars a barrel on Wednesday, compared with 12.41 dollars on Tuesday, according to OPEC Secretariat calculations released on Thursday.

Also known as the OPEC reference basket of crude oil, the OPEC basket, a weighted average of oil prices from different OPEC members around the world, is used as an important benchmark for crude oil prices.

It currently averages the oil prices of 13 countries, namely Algeria, Angola, the Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates and Venezuela.

(XINHUA)

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Foreign

OPEC daily basket price drops to 12.41 USD per barrel

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The Organization of the Petroleum Exporting Countries (OPEC) daily basket price dropped to 12.41 U.S. dollars a barrel on Tuesday, compared with 13.30 dollars on Monday, according to OPEC Secretariat calculations released on Wednesday.

Also known as the OPEC reference basket of crude oil, the OPEC basket, a weighted average of oil prices from different OPEC members around the world, is used as an important benchmark for crude oil prices.

It currently averages the oil prices of 13 countries, namely Algeria, Angola, the Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates and Venezuela.

(XINHUA)

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