Nigeria will continue to collaborate with other OPEC+ nations in the historic efforts to adjust crude oil production towards rebalancing and stabilising the global crude oil market for the benefit of all.
Minister of State for Petroleum, Timipreye Sylva, reaffirmed the country’s commitment, alongside its OPEC+ counterparts to extend the first phase of the production adjustments of 9.7 million barrels per day (BPD) by one month until the end of July 2020.
Nigeria also subscribed to the concept of compensation by countries that were unable to attain full conformity of 100% cut in their production in May and June 2020 to compensate for it in July, August and September 2020
Mexico on the other hand will not be joining the top oil producers in extending through July to production output cuts aimed at propping up the price of crude in the international market.
Made up of OPEC members and allies led by Russia, the group is known as OPEC+ agreed in April to cut oil supply by 9.7 million barrels per day in May and June to support prices. Under that deal, Mexico pledged to reduce its crude output by 100,000 BPD in May and June, after resisting pressure from other oil producers to make cuts of 400,000 BPD.
The cuts had been due to taper to 7.7 million BPD from July to December, but on Saturday, OPEC+ agreed to extend the production cuts until the end of July.
Mexican President, Andres Manuel Lopez Obrador, who has vowed to ramp up his country’s crude oil production, said on Friday that Mexico was not in a position to make additional cuts on top of what it had agreed in April. A position his Energy Minister, Rocio Nahle, reaffirmed at Saturday’s virtual meeting of the group.
(Editor: Terverr Tyav)