Nigeria’s crude oil grade, Bonny Light, on Wednesday, maintains its positive movement upward, as the Organisation of Petroleum Exporting Countries, OPEC and its allies decided to maintain its monthly production adjustment mechanism of crude oil in the international market.
The group, which comprises of the OPEC and allies led by Russia with an average of over 40 percent of global supply, has in recent times, faced pressure from top consumers such as the United States and India to pump more to help the economic recovery from COVID-19 pandemic.
Also, OPEC’s 13 and their 10 allies drastically slashed output in 2020 as the pandemic wreaked havoc with demand.
However, following the conclusion of the 25th OPEC and non-OPEC Ministerial Meeting (ONOMM), held via videoconference on Wednesday, the group concluded that in view of current oil market fundamentals and the consensus on the outlook, the OPEC and participating non-OPEC oil-producing countries in the Declaration of Cooperation (DoC) decided to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial meeting on 12 April 2020 and further endorsed in subsequent meetings, including the 19th ONOMM on 18 July 2021.
The group reconfirmed the production adjustment plan and the monthly production adjustment mechanism approved at the 19th ONOMM and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of March 2022, as per the attached schedule.
“We reiterated the critical importance of adhering to full conformity and to the compensation mechanism, taking advantage of the extension of the compensation period until the end of June 2022. Compensation plans will be submitted in accordance with the statement of the 15th ONOMM. “The 26th ONOMM on 2 March 2022,” the group added.
