By Udeme Akpan
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THE price of Nigeria’s Bonny Light, which had risen to over $71 per barrel after the recent meeting of the Organisation of Petroleum Exporting Countries, OPEC, and Non-OPEC members, Thursday, dropped to $66.20 per barrel, mainly because of the negative International Energy Agency’s report.
In the report released, Wednesday, obtained by Vanguard, the agency had stated that the volatile market was still affected by commercial stocks of crudes, a development, which culminated in negative speculation, and the unprecedented crash in the prices of crudes, including Brent from $72.70 to 463.05 per barrel.
However, at the current $66.20 per barrel, Nigeria still records an excess of $26.20 as its 2021 budget was based on $40 per barrel, and 1.8 million barrels per day, BPD, including Condensate.
Nevertheless, the agency report further, stated: “For the world’s oil demand to peak anytime soon, significant action is needed immediately to improve fuel efficiency standards, boost electric vehicle sales and curb oil use in the power sector.
“Those actions – combined with increased teleworking, greater recycling, and reduced business travel – could reduce oil use by as much as 5.6 mb/d by 2026, which would mean that global oil demand never gets back to where it was before the pandemic. Asia will continue to dominate growth in global oil demand, accounting for 90% of the increase between 2019 and 2026 in the IEA report’s base case. By contrast, demand in many advanced economies, where vehicle ownership and oil use per capita are much higher, is not expected to return to pre-crisis levels.”
However, at its recent meeting, OPEC, which took major decisions to achieve market stability, had commended Saudi Arabia for the extension of the additional voluntary adjustments of 1 mb/d for the month of April 2021, exemplifying its leadership, and demonstrating its flexible and pre-emptive approach.
According to OPEC, “The Ministers approved a…
Read the full article at www.vanguardngr.com
