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To rescue global oil prices, Nigeria, others agree on 1.5 million barrels cut at Vienna

Strong indications have emerged suggesting that Nigeria and other members of the Organisation of Petroleum Exporting Countries (OPEC) agreed to cut oil production by additional 1.5 million barrels per day in the second quarter of 2020 to prop up prices.

The agreement, which was reached at the 178th (Extraordinary) Meeting of the Conference of OPEC in Vienna, Austria, needs the backing of its 10 allies led by Russia.

Recall that Nigeria’s Minister of State, Petroleum, Chief Timipre Sylva was among OPEC ministers, who defied COVID-19 fears and went ahead with the crucial meeting to rescue dwindling oil prices since the global coronavirus pandemic started spreading beyond China.

Business Hilights gathered further that OPEC also recommended that the existing cuts of 2.1 million bpd, which would expire this month, should be kept in place until the end of 2020. OPEC and its allies also met Friday and reviewed the recommendations.

It would be recalled that Chief Sylva, had before the meeting started, told media executives that “Something has to be done; that’s why we’re here.”

The conference said in a statement that the COVID-19 outbreak has had a major adverse impact on global economic and oil demand forecasts in 2020, particularly for the first and second quarters.

It said, “In view of the current fundamentals and the consensus on market perspectives, the conference decided to recommend to the 8th OPEC and non-OPEC Ministerial Meeting to extend the adjustment levels agreed at the 177th meeting of the conference and the 7th OPEC and non-OPEC Ministerial Meeting for the remainder of the year.

“It also agreed to recommend to the 8th OPEC and non-OPEC Ministerial Meeting a further adjustment of 1.5 million bpd until June 30, 2020 to be applied pro-rata between OPEC (1.0 mbpd) and non-OPEC producing countries (0.5 mbpd) participating in the Declaration of Cooperation,” OPEC averred.

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