Following the recent instability in the price of crude oil, Nigeria has reaffirmed its unwavering commitment to production adjustments agreed upon under the Declaration of Cooperation (DoC) between member countries of the Organization of the Petroleum Exporting Countries (OPEC) and Non-OPEC Countries at the last Ministerial Meeting of what is known as OPEC Plus, held on July 2, 2019, Vienna, Austria.
Nigeria’s Representatives on the OPEC Economic Commission Board and Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari, made this known in a statement issued in Abuja.
According to the statement signed by the OPEC Representative, Nigeria is totally committed to full compliance with the agreement reached by the parties to the DoC.
“Right now we are not only committed to the agreement but we have elevated our attitude towards it to the point of complete devotion to the adjustments and we urge other parties to follow suit,” the OPEC Rep stated.
Kyari expressed strong optimism that the momentary and artificially induced bearish trends would naturally correct itself based on the strong market fundamentals which have remained steadfast despite the price slid.
He enthused that with a visible steady decline in commercial stock overhang propelled by healthy demand, it is only logical for all advocates of oil price stability like the OPEC Plus allies to comply strictly with the agreed production adjustments.
He concluded that with the increasing volatility of the oil market, it has become commonsensical for Nigeria and all other parties to the agreement to entrench an attitude of unwavering devotion to the deal anchored on full and timely conformity to their obligations.
Crude oil markets hit a major resistance barrier during the trading session this week, as the market continues to witness a lot of back and forth movement.
The West Texas International ( WTI) Crude Oil market went back and forth during the trading session on Monday, as it continues to see a lot of confusion as to demand and of course supply. It is believed that if the Iranian tensions and loosening monetary policy around the world can’t pick up the idea of demand for crude, then there is trouble, analysts said.
“Brent markets went back and forth during the trading session as well, stalling at the $59 level. This is the beginning of an area that has been previous support that extends all the way to the $60 level. At this point, the market looks as if it is going to continue to struggle, and therefore we could turn around and reach towards the $55 level given enough time,” says Christopher Lewis
Overall, he said the market continues to be one that should sell, because there is a lot of negativity out there and he does not see that changing anytime soon as the economies around the world are slowing down. “If we did break above the $60 level though, we could go towards the $62.50 level, which has also been resistance.”
Olusola Bello
