Nigeria's foremost Online Energy News Platform

Oil Market Weekly Briefing As At 5th June 2020

*Brent up further as Saudi Arabia, Russia likely to extend 9.7million b/d quota

Petroligica’s free weekly round-up of the latest news in the oil market is as shown below:

  • Brent has pushed up a little further this week, currently above $41/bbl as OPEC+ are set to meet tomorrow
  • The most likely outcome is a 1 month extension to the 9.7 million b/d quota level
  • Russia and Saudi Arabia have been complaining about the compliance of others, especially Iraq and Nigeria, and may demand missed targets are made up for later
  • However, this demand is unlikely to be met in practice by these nations, and has little broader market significance
  • The Russian energy ministry says the country was 96% compliant in May, while survey data see Saudi Arabia at 92%-100%, Iraq 43%-49% and Nigeria 18%-50%
  • Qatar Petroleum continues investing, including a large expansion of its LNG fleet and farm-ins offshore Mexico and Cote d’Ivoire
  • Some majors are withdrawing suspensions of activities, preferring to pay to retain rigs even if they are doing no work, in expectation of a restart soon.