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Oil reaches $40, Nigeria cuts production by 216,000bpd

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Brent crude which is the benchmark against which Nigeria’s crude is priced rose to $40 per barrel for the first time since March.

This happened on Wednesday as global oil commodities gained at prices. Brent crude rose by 43 cents, or 1.1 percent, to $40 per barrel, as of 02:52 GMT.

This development emerged when the Minister of State for Petroleum Resources, Timipre Sylva, just declared that Nigeria’s compliance with the crude oil production cut that was agreed by members and non-members of the Organisation of Petroleum Exporting Countries had reached 52 percent.

In a tweet via his official Twitter handle, Sylva said Nigeria joined its other OPEC+ counterparts in April 2020 to bring into effect the agreement to cut 9.7 million barrels of crude daily.

This, he said, was to ameliorate the current situation caused by the COVID-19 pandemic.

He said, “Nigeria has made concerted efforts to adhere to this commitment and will continue to do so unequivocally.

“Based on current NNPC data, Nigeria reduced its current production in May 2020 to 1.613kbd. The difference between its reference production of 1.829kbd with its May 2020 production figures is 216kbd.

“This represents compliance of about 52 percent as opposed to the 19 percent reported by Thompson Reuters.”

Sylva said the country’s current crude oil production had dipped, which was due to efforts in ensuring adequate compliance with the OPEC+ oil cut agreement.

“It is worthy to note that current daily crude oil production is well below the period commitment level of 1.412 million barrels per day and will translate to full compliance by end of June 2020, he said.

Source Punch
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