Nigeria explains when it will fully comply with OPEC+ output cut
- 10th June 2020
- Posted by: Hakeem
- Category: Economics, FUNDAMENTAL ANALYSIS, International
Nigeria has given the timeline for the implementation of the agreed OPEC+ output cut. The country has announced that it will implement all of the output cuts that were agreed by the middle of July at the latest.
This was disclosed by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, during a television interview with Bloomberg on Tuesday, June 9, 2020.
Kyari said, ‘’Definitely by the end of June, we’ll see full compliance from Nigeria. It will be done in the first half of July in the worst-case scenario. Over the past 10 days, the country has been cutting more than required under the OPEC+ pact.’’
Nigeria and Iraq had been accused of being unable to comply with the allocated output cut for May and June as were agreed in the OPEC+ deal as part of measures to help rebalance the oil market.
The alliance met over the weekend and agreed to extend the current output cut of 9.7 million barrels per day for an extra month. The latest agreement by the 23 nation alliance is hinged on promises from Nigeria and the other non-compliant members to make up for their past disregard of their output quota.
It can be recalled that Nigeria’s Minister of State for Petroleum, Timipre Sylva, in an earlier statement some days ago admitted that the country implemented only about 52% of the designated output cut in May when it pumped 1.613 million barrels per day.
Nigeria had earlier reaffirmed its commitment to OPEC+ new deal on the extension of the first phase of output cut of 9.7 million barrels per day. They promised to continue to collaborate with other OPEC+ member countries to come up with measures that will help rebalance and stabilize the oil market.
According to Bloomberg, the country will require about 67,000 barrels per day over the next 3 months to offset the earlier deviation