OPEC maintains monthly production as EU agrees to impose price cap on Russian oil
The Organization of the Petroleum Exporting Countries (OPEC) agreed on Sunday to maintain its forecast monthly oil production, as the European Union agreed to impose a price cap on Russian oil.
OPEC revealed this at its 34th OPEC and non-OPEC ministerial meeting, according to a statement issued by the organization on Sunday.
The oil cartel noted that its decision was in line with the proactive and preventive approach.
The development came days after the European Union announced that it had reached a consensus to cap the price of Russian oil at $60 a barrel.
In October, OPEC agreed to cut oil production by 2 million barrels per day in November. This is the largest OPEC+ cut since the 2020 COVID pandemic disrupted the global economy. His decision comes despite pressure from the United States and others for the group to pump more.
On Friday, the G7 nations, the European Union and Australia agreed to impose a price cap of $60 a barrel on Russian oil shipped to other countries that do not have an embargo .
“The EU's agreement on an oil price cap, coordinated with the G7 and others, will significantly reduce Russia's revenues. benefit emerging economies around the world,” Ursula von der Leyen, President of the European Commission, said in a tweet on Friday.
On Sunday, OPEC said it had decided to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting of April 12, 2020 and further endorse it at subsequent meetings, including the 19th Ministerial Meeting OPEC and Non-OPEC on July 18, 2021 and the 33rd OPEC and Non-OPEC Ministerial Meeting on October 5, 2022.
"In accordance with OPEC's decision which was purely market driven and retrospectively recognized by market participants as having been the necessary and appropriate course of action to stabilize world oil markets; and adhering to proactive and preventive approach, the participating countries reiterated their willingness to meet at any time and to take immediate additional measures to deal with market developments and support the balance of the oil market and its stability if necessary.
"Reiterate the critical importance of adhering to the Full Compliance and Compensation Mechanism by leveraging the extension approved at the 33rd OPEC and non-OPEC Ministerial Meeting," he said.
READ ALSO:These new developments come against a backdrop of uncertainties created in the global oil market by the Russian-Ukrainian war, which has affected oil prices and global trade.
For months, Nigeria failed to meet its higher quota due to massive oil theft and other production issues.
Averaging 1,083,899 barrels per day in July, Nigeria's crude oil production plunged below one million barrels per day (972,394 bpd) in August, the lowest on record for several years.
In October, the country's production improved to 1.014 million barrels per day, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
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The Organization of the Petroleum Exporting Countries (OPEC) agreed on Sunday to maintain its forecast monthly oil production, as the European Union agreed to impose a price cap on Russian oil.
OPEC revealed this at its 34th OPEC and non-OPEC ministerial meeting, according to a statement issued by the organization on Sunday.
The oil cartel noted that its decision was in line with the proactive and preventive approach.
The development came days after the European Union announced that it had reached a consensus to cap the price of Russian oil at $60 a barrel.
In October, OPEC agreed to cut oil production by 2 million barrels per day in November. This is the largest OPEC+ cut since the 2020 COVID pandemic disrupted the global economy. His decision comes despite pressure from the United States and others for the group to pump more.
On Friday, the G7 nations, the European Union and Australia agreed to impose a price cap of $60 a barrel on Russian oil shipped to other countries that do not have an embargo .
“The EU's agreement on an oil price cap, coordinated with the G7 and others, will significantly reduce Russia's revenues. benefit emerging economies around the world,” Ursula von der Leyen, President of the European Commission, said in a tweet on Friday.
On Sunday, OPEC said it had decided to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting of April 12, 2020 and further endorse it at subsequent meetings, including the 19th Ministerial Meeting OPEC and Non-OPEC on July 18, 2021 and the 33rd OPEC and Non-OPEC Ministerial Meeting on October 5, 2022.
"In accordance with OPEC's decision which was purely market driven and retrospectively recognized by market participants as having been the necessary and appropriate course of action to stabilize world oil markets; and adhering to proactive and preventive approach, the participating countries reiterated their willingness to meet at any time and to take immediate additional measures to deal with market developments and support the balance of the oil market and its stability if necessary.
"Reiterate the critical importance of adhering to the Full Compliance and Compensation Mechanism by leveraging the extension approved at the 33rd OPEC and non-OPEC Ministerial Meeting," he said.
READ ALSO:These new developments come against a backdrop of uncertainties created in the global oil market by the Russian-Ukrainian war, which has affected oil prices and global trade.
For months, Nigeria failed to meet its higher quota due to massive oil theft and other production issues.
Averaging 1,083,899 barrels per day in July, Nigeria's crude oil production plunged below one million barrels per day (972,394 bpd) in August, the lowest on record for several years.
In October, the country's production improved to 1.014 million barrels per day, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.Donate
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