OPEC commends crude oil production cut by Nigeria

The Joint Ministerial Monitoring Committee (JMMC) of the Organisation of Petroleum Exporting Countries (OPEC) has commended the progress made by Nigeria to conform with the agreement on Crude oil production cut.

The group gave the commendation at the 26th Meeting of the JMMC held via video conference on Wednesday.

It urged its members to remain optimistic about decisions that would drive the recovery of the global oil market.

“Since the April 2020 Ministerial Meeting, OPEC and non-OPEC countries have adjusted oil production down by a cumulative 2.1 billion barrels, stabilising the oil market and accelerating the rebalancing process.

“The Declaration of Cooperation (DoC) participants pledged to achieve full conformity and make up for previous compensation short-falls, and stressed the importance of accelerating market rebalancing without delay.

“The progress of Nigeria in this respect was well noted,” It said.

The Committee emphasised the ongoing positive contributions of the DoC in supporting a rebalancing of the global oil market in line with the historic decisions taken at the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting on 12 April 2020.

The meeting, it said was to adjust downwards overall crude oil production and the unanimous decisions taken at the 179th Meeting of the OPEC Conference and the 11th OPEC and non-OPEC Ministerial Meeting on 6 June 2020.

“While economic prospects and oil demand would remain uncertain in the coming months, the gradual rollout of coronavirus vaccines around the world is a positive factor for the rest of the year, boosting the global economy and oil demand.

“All participating countries are reminded to remain vigilant and flexible given the uncertain market conditions, and to stay on the course, which has hitherto reaped rewards,” it added.

The Committee further noted, with gratitude, the significant additional voluntary supply adjustment made by Saudi Arabia, taking effect on 1 February 2021 for two months.

“It exemplified its leadership, and the need for a flexible and pre-emptive approach by all DoC members.

“It also reviewed the monthly report prepared by the Joint Technical Committee (JTC), including the crude oil production data for the month of December 2020,” said the Committee.

It welcomed the positive performance of participating countries, and that conformity with the original production adjustments was 101 per cent, reinforcing the trend of high compliance by participating countries.