Nigeria committed to OPEC production agreement amid Oil prices drop

Nigeria has reaffirmed its commitment to production adjustments agreement under the Declaration of Cooperation (DoC) reached between member countries of the Organisation of the Petroleum Exporting Countries (OPEC) and Non-OPEC Countries.

This is even as the Global oil prices on Wednesday fell on weak global economic data and a rise in U.S. crude inventories, almost erasing the previous session’s strong gains which followed the United States’ move to delay tariffs on some Chinese products.

Nigeria’s Representatives on the OPEC Economic Commission Board and Group Managing Director, Nigerian National Petroleum Corporation, Malam Mele Kyari, made this known in a

“Right now, we are not only committed to the agreement but we have elevated our attitude towards it to the point of complete devotion to the adjustments and we urge other parties to follow suit,” he said

Kyari said the strong optimism that the momentary and artificially induced bearish trends would naturally, correct it based on the strong market fundamentals.

This, he said, had remained steadfast in spite of the price slid.

He noted that with the visible steady decline in commercial stock overhang due to healthy demand, it was only logical for all advocates of oil price stability to comply strictly with the production adjustments.

He noted that with the increasing volatility of the oil market, it has become necessary for Nigeria and all other parties to the agreement to entrench an attitude of unwavering devotion to the deal anchored on full and timely conformity to their obligations.

As at 1323 GMT, brent crude was down $1.81, or 3 per cent, at $59.49 a barrel, after rising 4.7per cent on Tuesday, the biggest percentage gain in a day since December.U.S. West Texas Intermediate (WTI) crude futures CLc1 were down $1.80, or 3.14per cent, at $55.30 a barrel, having risen 4 per cent the previous session, the most in just over a month.