OPEC Meets in Vienna, Nigeria Complies With Oil Cuts Agreements

-By Kenny Folarin

The Organization of Petroleum Exporting Countries (OPEC) is meeting in Vienna on Thursday to, among others, review oil cut agreements and deal with developments in the global volatile market.

The global oil market, in the last month, has witnessed oil price dropping from $64.30 to $61.20 in the past few days, owing to inability of members to comply with agreements.

“OPEC and its non-OPEC partners have turned the tides and ushered in a new and better way of doing business. We need a strategy that involves respect, collaboration and transparency; a strategy that is defined by what we have in common, rather then what makes us different.

“We need an approach that embraces tolerance and openness to the views of others; a modus operandi that brings out the best in all of us,” the OPEC Secretary-General, His Excellency Mohammed Barkindo,  stated.

Meanwhile, ahead of the OPEC meeting in Vienna Nigeria’s Minister of State for Petroleum, Chief Timiprey Sylva, has said that Nigeria is committed to full implementation of the OPEC agreements, including oil cuts.

He added that Nigeria had achieved 100% compliance in the month of November, pointing out that this has brought stability into the oil markets.

Reuters quoted Sylva as saying he had assured Saudi Energy Minister Bin Salman, who is overseeing OPEC ministerial monitoring committee, that Nigeria’s compliance with oil cut agreement had improved substantially.

Whereas Nigeria and Iran are two OPEC members accused of rebuffing agreements on oil production cuts, the body is meeting on Thursday to review agreements, of which deadlines are in March.

The meeting in Vienna would also review the outlook for the oil market for the first half of 2020.

Nigeria’s crude production in the third quarter stood at 2.04 million barrels per day, its highest since the first quarter of 2016, which helped its economy grow 2.28% in the three months to September, Nigerian Bureau for Statistics revealed in its latest report.