Uncertainty as OPEC Puts Cap on Oil Price, Says Body Not Willing to Allow Price Hit N41,00/PB

Uncertainty as OPEC Puts Cap on Oil Price, Says Body Not Willing to Allow Price Hit N41,00/PB

  • OPEC, the body responsible for regulating oil benchmark for export, says it is not ready to allow crude oil to sell for $100
  • Oman Minister of Oil, Mohammed Rumhi said the body is watching the market closely so as not allow glut
  • He said that body does not want to go beyond 400,000 barrels per day for member nations, else it won't be easy to recover from the pandemic

The Organisation of Petroleum Exporting Countries (OPEC) (N41,500) and its partners may not want oil price to get to $100 (/PB any time soon so as to stop worldwide demand for energy from overheating.

Bloomberg reports that Oman’s Oil Minister, Mohammed Al Rumhi said this on Tuesday, January 11, 2022.

The price of Brent crude has rebounded above $80 (N32,000) this year.

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What the Rumhi said

Rumhi told Bloomberg that they are cautious at OPEC+ and they will look at each month as time goes by.

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Rumhi said:

“But so far, I think 400,000 is good because demand is increasing and we want to make sure that the market is not overheating. We don’t want to see $100 a barrel. The world is not ready for that.”

The body and its partners have been fixing output at a level of 400,000 BPD but have been faced with a lot of roadblocks from member nations.

According to Rumhi, in the last five years, investments have been confined to in the industry and the body is paying dearly for it now.

He cautioned crude oil’s rebounding is boosting rising fears in many consumer countries now and might hurt economic recovery from the COVID-19 pandemic.

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As body re-elects Nigerian as Secretary

Legit.ng has reported that The Organization of Petroleum Exporting Countries (OPEC ) on Monday, July 1, night announced the re-election of Nigeria’s Mohammed Barkindo as secretary General for a three-year tenure.

Barkindo, who is an accomplished oil technocrat with a wealth of experience in the oil and gas sector, was first elected as Secretary General of the bloc in 2016.

Addressing newsmen at the end of the 176th meeting Of OPEC member nations, Salvador Fernandez, President of the conference, also announced a nine- month extension of the global oil production cut under the “ Declaration of Cooperation “ among member states.

Source: Legit.ng

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