A meeting held on the 4th November 2021 by the organization of Petroleum Exporting Countries and it’s allies, announced for the rise in production quota of member by 0.4%, which in turn will increase Nigeria’s quota to 1.666 million barrels per day for December as against the current quota which is 1.43 million barrels per day. This was concluded at the end of the 22nd OPEC and non-OPEC Ministerial Meeting which took place via a video conference. This simply means that, production will be increased by 400,000 barrels per day of oil and will be added to Nigeria’s production next month from the 1.649mbpd agreed upon for the country this month of November.
It should be noted that oil prices increased by more than $2, with Brent crude trading at $84.14 a barrel, after dropping to $81 a barrel as at 3rd November. According to facts gotten from the concluded ministerial meeting which took place at the OPEC headquarters in Vienna, Austria, the meeting praised the never ending commitment of the participating countries in the Declaration of Cooperation (DoC) to ensure a stable and a balanced oil market, the efficient and secure supply to consumers and to provide clarity to the market.
This is especially important at times when other sections of the energy complex outside of oil markets are experiencing tremendous volatility and instability, and to continue to take a proactive and transparent strategy that has kept oil markets stable.
The Meeting also reaffirmed production adjustment plan and monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting, as well as the decision to raise monthly overall production by 0.4 million barrels per day for the month of December 2021,’ according to the statement. The total oil production output for December is 40.094mbpd which is divided into the following 24.300 million barrels per day by OPEC and 10, 15.794 million barrels per day for Non-OPEC members. The effect of these development with regards to the price of AGO PMS MGO is still hinged on market forces. OPEC raising the country’s output simply means that our Production quota is higher and chances of the country falling into scarcity due to shortage of Products is unlikely with prices of Petroleum Products likely to remain the same for now.
Source: Daily Trust, Press readers, News now.
