Business
OPEC: Nigeria committed to additional cuts from July
By ADEBAYO OBAJEMU
Nigeria has committed to making additional oil output cuts from July to September, the Petroleum Minister, Timipre Sylva said on Saturday.
In a flurry of tweets via his Twitter handle on Saturday, Sylva said the decision was to make up for its inability to meet up with 100 per cent cuts in earlier months.
A statement by OPEC had said the Saturday meeting was to force countries which Nigeria was among, to make full compliance with the oil cuts.
The OPEC+ decided in April to cut output by a record 9.7 million barrels per day to lift prices battered by a demand drop linked to lockdown measures aimed at stopping the spread of the coronavirus.
“As OPEC meets today, Nigeria reconfirms our commitment under the existing agreement,” the Minister of State for Petroleum Resources, Sylva on its Twitter handle on Saturday.
“Nigeria subscribes to the concept of compensation by countries who are unable to attain full conformity (100 per cent) in May and June to accommodate it in July, August and September.”
OPEC+ agreed to a one-month extension of its record output cuts of 9.7 million barrels per day on Satur to the end of July, instead of easing it to 7.7 million after this month as planned.
According to the meeting’s draft communique, any member that doesn’t implement 100 per cent of its production cuts in May and June will make extra reductions from July to September to compensate for their failings.
The Secretary-general of OPEC, Mohammad Barkindo, said, “The productions adjustments agreed in April are by far the largest and longest in the history of OPEC, OPEC+ and the global oil industry.
“The unparalleled commitment and the unity and courage for the common cause of oil market stability has been positive.”
“Despite the progress achieved to date, we cannot afford to rest on our laurels. The challenge that we face remains daunting,” Mohamed Arkab, Algeria’s energy minister and current OPEC president, said at the start of the meeting.
The group will meet again in the second half of June for another review of the oil market.
The panel will meet every month until December, according to the draft communique.
