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  •  The Organisation of Petroleum Exporting Countries OPEC says the death of Dr Maikanti Baru former Group Managing Director of NNPC is a huge loss to the oil and gas sector in Nigeria Dr Mohammed Barkindo Secretary General disclosed this in a condolence message released in Abuja on Saturday News Agency of Nigeria NAN reports that Baru died after a brief illness in Abuja as confirmed by the spokesman of NNPC Dr Kennie Obateru Barkindo described Baru as a hardworking and committed person who believed in transparency and accountability Dr Maikanti Baru was a good and hardworking professional whom l had absolute confidence in both as his colleague in NNPC and later as GMD As GMD of NNPC he repositioned the Corporation and the Nigeria s oil Industry He was workaholic cerebral humane godly and kind hearted he said He prayed God almighty to grant his soul rest and expressed condolences to the family the oil Industry and Nigeria at large NAN reports that Baru 60 was at the helm of NNPC affairs from July 4 2016 to July 7 2019 when he retired He was born in July 1959 in Misau Bauchi State and attended Federal Government College Jos for his secondary education where he graduated in 1978 He obtained his bachelor of engineering degree from Ahmadu Bello University Zaria in 1982 and doctorate in Computer Aided Engineering from the University of Sussex Edited By Chidinma Agu Donald Ugwu NAN
    OPEC mourns ex-GMD of NNPC Baru
     The Organisation of Petroleum Exporting Countries OPEC says the death of Dr Maikanti Baru former Group Managing Director of NNPC is a huge loss to the oil and gas sector in Nigeria Dr Mohammed Barkindo Secretary General disclosed this in a condolence message released in Abuja on Saturday News Agency of Nigeria NAN reports that Baru died after a brief illness in Abuja as confirmed by the spokesman of NNPC Dr Kennie Obateru Barkindo described Baru as a hardworking and committed person who believed in transparency and accountability Dr Maikanti Baru was a good and hardworking professional whom l had absolute confidence in both as his colleague in NNPC and later as GMD As GMD of NNPC he repositioned the Corporation and the Nigeria s oil Industry He was workaholic cerebral humane godly and kind hearted he said He prayed God almighty to grant his soul rest and expressed condolences to the family the oil Industry and Nigeria at large NAN reports that Baru 60 was at the helm of NNPC affairs from July 4 2016 to July 7 2019 when he retired He was born in July 1959 in Misau Bauchi State and attended Federal Government College Jos for his secondary education where he graduated in 1978 He obtained his bachelor of engineering degree from Ahmadu Bello University Zaria in 1982 and doctorate in Computer Aided Engineering from the University of Sussex Edited By Chidinma Agu Donald Ugwu NAN
    OPEC mourns ex-GMD of NNPC Baru
    Oil & Gas2 years ago

    OPEC mourns ex-GMD of NNPC Baru

    The Organisation of Petroleum Exporting Countries (OPEC), says the death of Dr Maikanti Baru, former Group Managing Director of NNPC,  is a huge loss to the oil and gas sector in Nigeria.

    Dr Mohammed Barkindo, Secretary-General, disclosed this in a condolence message released in Abuja on Saturday.

    News Agency of Nigeria (NAN) reports that Baru died after a brief illness in Abuja as confirmed by the spokesman of NNPC, Dr Kennie Obateru.

    Barkindo described Baru as a hardworking and committed person who believed in transparency and accountability.

    Dr Maikanti Baru was a good and hardworking professional whom l had absolute confidence in both as his colleague in NNPC and, later, as GMD.

    As GMD of NNPC he repositioned the Corporation and the Nigeria’s oil Industry.

    “He was workaholic, cerebral, humane, godly and kind-hearted,” he said.

    He prayed God almighty to grant his soul rest and expressed condolences to the family, the oil Industry and Nigeria at large.

    NAN reports that Baru, 60, was at the helm of NNPC affairs from July 4, 2016 to July 7, 2019 when he retired.

    He was born in July 1959 in Misau, Bauchi State, and attended Federal Government College, Jos, for his secondary education where he graduated in 1978.

    He obtained his bachelor of engineering degree from Ahmadu Bello University, Zaria, in 1982 and doctorate in Computer Aided Engineering from the University of Sussex.


    Edited By: Chidinma Agu/Donald Ugwu (NAN)

  •  Oil prices edged lower on Friday after the U S inventory data showed lacklustre fuel demand in the world s largest oil consumer while worsening U S China tensions weighed on global financial markets Brent crude slipped 25 cents or 0 7 per cent to 35 04 a barrel by 0334 GMT and the U S West Texas Intermediate crude was at 33 18 a barrel down 53 cents or 1 6 per cent Still both contracts are set for a fifth weekly gain helped by production cuts and optimism about demand recovery in other countries The rally needs a breather It has been four weeks of gains and the market needs to buy time for downstream prices to catch up OCBC economist Howie Lee said Beyond the short term the bullish momentum still looks rather intact Thursday s data from the Energy Information Administration showed that the U S crude oil and distillate inventories rose sharply last week Fuel demand remained slack even as various states lifted travel restrictions they had imposed to curb the coronavirus pandemic analysts said Memorial Day weekend did not bring the U S motorists out in droves like many market bulls were hoping RBC Capital Markets analyst Christopher Louney said in a note Looking ahead traders will be focusing on the outcome of talks on output cuts between members of OPEC the Organisation of the Petroleum Exporting Countries OPEC and allies including Russia in the second week of June Saudi Arabia and some OPEC members are considering extending record production cuts of 9 7 million barrels per day beyond June but have yet to win support from Russia AIB Edited By Abdulfatah Babatunde NAN
    Oil prices fall as U.S. fuel demand remains weak
     Oil prices edged lower on Friday after the U S inventory data showed lacklustre fuel demand in the world s largest oil consumer while worsening U S China tensions weighed on global financial markets Brent crude slipped 25 cents or 0 7 per cent to 35 04 a barrel by 0334 GMT and the U S West Texas Intermediate crude was at 33 18 a barrel down 53 cents or 1 6 per cent Still both contracts are set for a fifth weekly gain helped by production cuts and optimism about demand recovery in other countries The rally needs a breather It has been four weeks of gains and the market needs to buy time for downstream prices to catch up OCBC economist Howie Lee said Beyond the short term the bullish momentum still looks rather intact Thursday s data from the Energy Information Administration showed that the U S crude oil and distillate inventories rose sharply last week Fuel demand remained slack even as various states lifted travel restrictions they had imposed to curb the coronavirus pandemic analysts said Memorial Day weekend did not bring the U S motorists out in droves like many market bulls were hoping RBC Capital Markets analyst Christopher Louney said in a note Looking ahead traders will be focusing on the outcome of talks on output cuts between members of OPEC the Organisation of the Petroleum Exporting Countries OPEC and allies including Russia in the second week of June Saudi Arabia and some OPEC members are considering extending record production cuts of 9 7 million barrels per day beyond June but have yet to win support from Russia AIB Edited By Abdulfatah Babatunde NAN
    Oil prices fall as U.S. fuel demand remains weak
    Economy2 years ago

    Oil prices fall as U.S. fuel demand remains weak

    Oil prices edged lower on Friday after the U.S. inventory data showed lacklustre fuel demand in the world’s largest oil consumer while worsening U.S.-China tensions weighed on global financial markets.

    Brent crude slipped 25 cents, or 0.7 per cent, to $35.04 a barrel by 0334 GMT and the U.S. West Texas Intermediate crude was at $33.18 a barrel, down 53 cents, or 1.6 per cent.

    Still, both contracts are set for a fifth weekly gain, helped by production cuts and optimism about demand recovery in other countries.

    “The rally needs a breather.

    “It has been four weeks of gains and the market needs to buy time for downstream prices to catch up,’’ OCBC economist, Howie Lee, said.

    “Beyond the short term, the bullish momentum still looks rather intact.’’

    Thursday’s data from the Energy Information Administration showed that the U.S. crude oil and distillate inventories rose sharply last week.

    Fuel demand remained slack even as various states lifted travel restrictions they had imposed to curb the coronavirus pandemic, analysts said.

    Memorial Day weekend did not bring the U.S. motorists out in droves like many market bulls were hoping,’’ RBC Capital Markets analyst, Christopher Louney, said in a note.

    Looking ahead, traders will be focusing on the outcome of talks on output cuts between members of OPEC+, the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia, in the second week of June.

    Saudi Arabia and some OPEC members are considering extending record production cuts of 9.7 million barrels per day beyond June, but have yet to win support from Russia.

    AIB


    Edited By: Abdulfatah Babatunde (NAN)

  •  China one of the largest consumers of oil in the world and the Organisation of the Petroleum Exporting Countries OPEC have agreed to work together to stabilise the oil market OPEC said this on Wednesday during a bilateral meeting The oil market is suffering from falling demand and low prices in light of the coronavirus pandemic The milestone talks between the Chinese delegation and OPEC Secretary General Mohammad Barkindo were held on Thursday in an online format according to the cartel The meeting reflected on the impact of the COVID 19 pandemic on the global economy and oil market as well as China s domestic oil market the rebalancing process of oil supply and demand and China s solutions for and optimisation of the oil and gas trade system The meeting also reached a consensus on the importance of energy security and maintaining stability in the energy markets strengthening collaboration between OPEC and China OPEC said in a statement Oil prices fell dramatically earlier this year against the background of the global coronavirus outbreak which resulted in the implementation of lockdown measures and the suspension of production As China and a number of other countries are now resuming domestic production the oil market is expected to stabilise by the end of 2020 The OPEC countries as well as oil producers from a wider G20 group of nations such as the U S Brazil and Canada reached the oil production cut deal in mid April The deal envisages a reduction in oil production by the OPEC group by 9 7 million barrels per day for two months starting on May 1 and possibly up to 15 million barrels daily with the G20 nations taken into account Edited By Emmanuel Yashim NAN
    China, OPEC agree to work closely to stabilise oil market suffering from COVID-19
     China one of the largest consumers of oil in the world and the Organisation of the Petroleum Exporting Countries OPEC have agreed to work together to stabilise the oil market OPEC said this on Wednesday during a bilateral meeting The oil market is suffering from falling demand and low prices in light of the coronavirus pandemic The milestone talks between the Chinese delegation and OPEC Secretary General Mohammad Barkindo were held on Thursday in an online format according to the cartel The meeting reflected on the impact of the COVID 19 pandemic on the global economy and oil market as well as China s domestic oil market the rebalancing process of oil supply and demand and China s solutions for and optimisation of the oil and gas trade system The meeting also reached a consensus on the importance of energy security and maintaining stability in the energy markets strengthening collaboration between OPEC and China OPEC said in a statement Oil prices fell dramatically earlier this year against the background of the global coronavirus outbreak which resulted in the implementation of lockdown measures and the suspension of production As China and a number of other countries are now resuming domestic production the oil market is expected to stabilise by the end of 2020 The OPEC countries as well as oil producers from a wider G20 group of nations such as the U S Brazil and Canada reached the oil production cut deal in mid April The deal envisages a reduction in oil production by the OPEC group by 9 7 million barrels per day for two months starting on May 1 and possibly up to 15 million barrels daily with the G20 nations taken into account Edited By Emmanuel Yashim NAN
    China, OPEC agree to work closely to stabilise oil market suffering from COVID-19
    Foreign3 years ago

    China, OPEC agree to work closely to stabilise oil market suffering from COVID-19

    China, one of the largest consumers of oil in the world, and the Organisation of the Petroleum Exporting Countries (OPEC) have agreed to work together to stabilise the oil market.

    OPEC said this on Wednesday during a bilateral meeting.

    The oil market is suffering from falling demand and low prices in light of the coronavirus pandemic.

    The “milestone” talks between the Chinese delegation and OPEC Secretary General Mohammad Barkindo were held on Thursday in an online format, according to the cartel.

    “The meeting reflected on the impact of the COVID-19 pandemic on the global economy and oil market, as well as China’s domestic oil market, the rebalancing process of oil supply and demand, and China’s solutions for and optimisation of the oil and gas trade system.

    “The meeting also reached a consensus on the importance of energy security and maintaining stability in the energy markets, strengthening collaboration between OPEC and China,” OPEC said in a statement.

    Oil prices fell dramatically earlier this year against the background of the global coronavirus outbreak, which resulted in the implementation of lockdown measures and the suspension of production.

    As China and a number of other countries are now resuming domestic production, the oil market is expected to stabilise by the end of 2020.

    The OPEC+ countries, as well as oil producers from a wider G20 group of nations, such as the U.S., Brazil and Canada, reached the oil production cut deal in mid-April.

    The deal envisages a reduction in oil production by the OPEC+ group by 9.7 million barrels per day for two months starting on May 1, and possibly up to 15 million barrels daily with the G20 nations taken into account.


    Edited By: Emmanuel Yashim (NAN)

  •  Oil prices fell on Wednesday as potential OPEC plans to deepen supply cuts were overshadowed by demand concerns exacerbated by a possible second wave of coronavirus infections as countries ease lockdowns Brent crude LCOc1 dropped 56 cents or 1 9 per cent to 29 42 a barrel by 0855 GMT having risen 1 2 per cent on Tuesday West Texas Intermediate crude futures fell 23 cents or 0 9 per cent to 25 55 after gaining 6 8 per cent in the previous session Fears are running rife that easing lockdown measures will trigger a second wave of coronavirus infections said Stephen Brennoc at oil brokerage PVM The U S infectious disease expert Anthony Fauci on Tuesday told the Congress that easing coronavirus lockdowns could set off new outbreaks of the COVID 19 disease that has killed 80 000 Americans and badly damaged the world s biggest economy and oil consumer New outbreaks have been reported in South Korea and China where the health crisis started before spreading across the globe prompting governments to lock down billions of people devastating economies and demand for oil The U S Energy Information Administration EIA now expects world oil demand to fall by 8 1 million barrels per day bpd this year to 92 6 million bpd compared with a previous forecast for a drop of 5 2 million bpd The agency also expects the U S output to fall by 540 000 bpd against a previous forecast of 470 000 bpd It expects global output of 11 7 million bpd this year and 10 9 million bpd in 2021 On the supply side OPEC is looking to maintain existing cuts beyond June when it meets next in Vienna sources told Reuters The Organisation of the Petroleum Exporting Countries OPEC and other producers including Russia a group known as OPEC agreed to cut output by 9 7 million bpd in May and June and to scale back cuts to 7 7 million bpd for the rest of the year Saudi Arabia s cabinet has urged OPEC countries to reduce output further to restore balance in global crude markets the country s state news agency reported early on Wednesday Riyadh said it would add to planned cuts by reducing production by a further one million bpd next month bringing output down to 7 5 million bpd Suffice to say the tug of war between OPEC led cuts and virus anxieties will limit upside price potential PVM s Brennoc said In the U S crude oil inventories rose by 7 6 million barrels last week to 526 2 million barrels against analyst expectations for an increase of 4 1 million barrels the American Petroleum Institute API said on Tuesday Still stocks of crude at the Cushing delivery hub in Oklahoma fell by 2 3 million barrels API said If confirmed by official data that would be the first drawdown since February ING Economics said Concerns over hitting storage capacity have eased as we see demand gradually recovering along with supply cuts hitting the market ING said in a note pointing to the decline in Cushing stocks Official EIA storage data is due later on Wednesday AIB Edited By Abdulfatah Babatunde NAN
    Oil falls as fears of second coronavirus wave take hold
     Oil prices fell on Wednesday as potential OPEC plans to deepen supply cuts were overshadowed by demand concerns exacerbated by a possible second wave of coronavirus infections as countries ease lockdowns Brent crude LCOc1 dropped 56 cents or 1 9 per cent to 29 42 a barrel by 0855 GMT having risen 1 2 per cent on Tuesday West Texas Intermediate crude futures fell 23 cents or 0 9 per cent to 25 55 after gaining 6 8 per cent in the previous session Fears are running rife that easing lockdown measures will trigger a second wave of coronavirus infections said Stephen Brennoc at oil brokerage PVM The U S infectious disease expert Anthony Fauci on Tuesday told the Congress that easing coronavirus lockdowns could set off new outbreaks of the COVID 19 disease that has killed 80 000 Americans and badly damaged the world s biggest economy and oil consumer New outbreaks have been reported in South Korea and China where the health crisis started before spreading across the globe prompting governments to lock down billions of people devastating economies and demand for oil The U S Energy Information Administration EIA now expects world oil demand to fall by 8 1 million barrels per day bpd this year to 92 6 million bpd compared with a previous forecast for a drop of 5 2 million bpd The agency also expects the U S output to fall by 540 000 bpd against a previous forecast of 470 000 bpd It expects global output of 11 7 million bpd this year and 10 9 million bpd in 2021 On the supply side OPEC is looking to maintain existing cuts beyond June when it meets next in Vienna sources told Reuters The Organisation of the Petroleum Exporting Countries OPEC and other producers including Russia a group known as OPEC agreed to cut output by 9 7 million bpd in May and June and to scale back cuts to 7 7 million bpd for the rest of the year Saudi Arabia s cabinet has urged OPEC countries to reduce output further to restore balance in global crude markets the country s state news agency reported early on Wednesday Riyadh said it would add to planned cuts by reducing production by a further one million bpd next month bringing output down to 7 5 million bpd Suffice to say the tug of war between OPEC led cuts and virus anxieties will limit upside price potential PVM s Brennoc said In the U S crude oil inventories rose by 7 6 million barrels last week to 526 2 million barrels against analyst expectations for an increase of 4 1 million barrels the American Petroleum Institute API said on Tuesday Still stocks of crude at the Cushing delivery hub in Oklahoma fell by 2 3 million barrels API said If confirmed by official data that would be the first drawdown since February ING Economics said Concerns over hitting storage capacity have eased as we see demand gradually recovering along with supply cuts hitting the market ING said in a note pointing to the decline in Cushing stocks Official EIA storage data is due later on Wednesday AIB Edited By Abdulfatah Babatunde NAN
    Oil falls as fears of second coronavirus wave take hold
    Economy3 years ago

    Oil falls as fears of second coronavirus wave take hold

    Oil prices fell, on Wednesday, as potential OPEC+ plans to deepen supply cuts were overshadowed by demand concerns exacerbated by a possible second wave of coronavirus infections as countries ease lockdowns.

    Brent crude LCOc1 dropped 56 cents, or 1.9 per cent, to $29.42 a barrel by 0855 GMT, having risen 1.2 per cent on Tuesday.

    West Texas Intermediate crude futures fell 23 cents, or 0.9 per cent, to $25.55 after gaining 6.8 per cent in the previous session.

    “Fears are running rife that easing lockdown measures will trigger a second wave of coronavirus infections,’’ said Stephen Brennoc at oil brokerage PVM.

    The U.S. infectious disease expert, Anthony Fauci, on Tuesday told the Congress that easing coronavirus lockdowns could set off new outbreaks of the COVID-19 disease that has killed 80,000 Americans and badly damaged the world’s biggest economy and oil consumer.

    New outbreaks have been reported in South Korea and China, where the health crisis started before spreading across the globe, prompting governments to lock down billions of people, devastating economies and demand for oil.

    The U.S. Energy Information Administration (EIA) now expects world oil demand to fall by 8.1 million barrels per day (bpd) this year to 92.6 million bpd, compared with a previous forecast for a drop of 5.2 million bpd.

    The agency also expects the U.S. output to fall by 540,000 bpd, against a previous forecast of 470,000 bpd.

    It expects global output of 11.7 million bpd this year and 10.9 million bpd in 2021.

    On the supply side, OPEC+ is looking to maintain existing cuts beyond June, when it meets next in Vienna, sources told Reuters.

    The Organisation of the Petroleum Exporting Countries (OPEC) and other producers including Russia – a group known as OPEC+ – agreed to cut output by 9.7 million bpd in May and June and to scale back cuts to 7.7 million bpd for the rest of the year.

    Saudi Arabia’s cabinet has urged OPEC+ countries to reduce output further to restore balance in global crude markets, the country’s state news agency reported early on Wednesday.

    Riyadh said it would add to planned cuts by reducing production by a further one million bpd next month, bringing output down to 7.5 million bpd.

    “Suffice to say, the tug-of-war between OPEC-led cuts and virus anxieties will limit upside price potential,’’ PVM’s Brennoc said.

    In the U.S., crude oil inventories rose by 7.6 million barrels last week to 526.2 million barrels, against analyst expectations for an increase of 4.1 million barrels, the American Petroleum Institute (API) said on Tuesday.

    Still, stocks of crude at the Cushing delivery hub in Oklahoma fell by 2.3 million barrels, API said.

    If confirmed by official data, that would be the first drawdown since February, ING Economics said.

    “Concerns over hitting storage capacity have eased, as we see demand gradually recovering, along with supply cuts hitting the market,’’ ING said in a note, pointing to the decline in Cushing stocks.

    Official EIA storage data is due later on Wednesday.

    AIB


    Edited By: Abdulfatah Babatunde (NAN)

  •  The Organisation of the Petroleum Exporting Countries OPEC daily basket price stood at 14 63 U S dollars a barrel on Tuesday compared with 14 19 dollars on Monday This is according to OPEC Secretariat calculations released on Wednesday Also known as the OPEC reference basket of crude oil ORB the OPEC basket is a weighted average of oil prices from different OPEC members around the world and is used as an important benchmark for crude oil prices It currently averages the oil prices of 13 countries namely Algeria Angola the Republic of the Congo Equatorial Guinea Gabon Iran Iraq Kuwait Libya Nigeria Saudi Arabia the United Arab Emirates and Venezuela Edited By Emmanuel Yashim NAN
    OPEC daily basket price stands at .63 per barrel
     The Organisation of the Petroleum Exporting Countries OPEC daily basket price stood at 14 63 U S dollars a barrel on Tuesday compared with 14 19 dollars on Monday This is according to OPEC Secretariat calculations released on Wednesday Also known as the OPEC reference basket of crude oil ORB the OPEC basket is a weighted average of oil prices from different OPEC members around the world and is used as an important benchmark for crude oil prices It currently averages the oil prices of 13 countries namely Algeria Angola the Republic of the Congo Equatorial Guinea Gabon Iran Iraq Kuwait Libya Nigeria Saudi Arabia the United Arab Emirates and Venezuela Edited By Emmanuel Yashim NAN
    OPEC daily basket price stands at .63 per barrel
    Foreign3 years ago

    OPEC daily basket price stands at $14.63 per barrel

    The Organisation of the Petroleum Exporting Countries (OPEC) daily basket price stood at 14.63 U.S. dollars a barrel on Tuesday, compared with 14.19 dollars on Monday.

    This is according to OPEC Secretariat calculations released on Wednesday.

    Also known as the OPEC reference basket of crude oil (ORB), the OPEC basket is a weighted average of oil prices from different OPEC members around the world, and is used as an important benchmark for crude oil prices.

    It currently averages the oil prices of 13 countries, namely Algeria, Angola, the Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela.


    Edited By: Emmanuel Yashim (NAN)

  •  Saudi Arabia said on Tuesday it was ready to take further measures together with OPEC members and other producers to achieve stability in the oil market The Kingdom is fully committed along with Russia to implement production cuts over the coming two years the cabinet said in a statement on Tuesday The statement was made following a meeting chaired by Saudi King Salman Saudi Arabia and Russia would continue to closely monitor the situation in the oil market the statement added On Monday United States crude oil prices plummeted to their lowest levels ever as contracts settled deep into negative territory for the first time amid shortages in storage capacity and a collapse in demand due to the coronavirus pandemic Earlier in April OPEC countries an expanded format of the Organisation of Petroleum Exporting Countries OPEC agreed on a deal to cut production by 9 7 million barrels per day for May and June It however failed to buoy prices back to their previous levels IAA Edited By Isaac Aregbesola NAN
    Saudi says ready for more measures to stabilize oil market
     Saudi Arabia said on Tuesday it was ready to take further measures together with OPEC members and other producers to achieve stability in the oil market The Kingdom is fully committed along with Russia to implement production cuts over the coming two years the cabinet said in a statement on Tuesday The statement was made following a meeting chaired by Saudi King Salman Saudi Arabia and Russia would continue to closely monitor the situation in the oil market the statement added On Monday United States crude oil prices plummeted to their lowest levels ever as contracts settled deep into negative territory for the first time amid shortages in storage capacity and a collapse in demand due to the coronavirus pandemic Earlier in April OPEC countries an expanded format of the Organisation of Petroleum Exporting Countries OPEC agreed on a deal to cut production by 9 7 million barrels per day for May and June It however failed to buoy prices back to their previous levels IAA Edited By Isaac Aregbesola NAN
    Saudi says ready for more measures to stabilize oil market
    Foreign3 years ago

    Saudi says ready for more measures to stabilize oil market

    Saudi Arabia said on Tuesday it was ready to take further measures together with OPEC+ members and other producers to achieve stability in the oil market.

    “The Kingdom is fully committed, along with Russia, to implement … production cuts over the coming two years,” the cabinet said in a statement on Tuesday

    The statement was made following a meeting chaired by Saudi King Salman.

    Saudi Arabia and Russia would continue to closely monitor the situation in the oil market, the statement added.

    On Monday, United States crude oil prices plummeted to their lowest levels ever, as contracts settled deep into negative territory for the first time amid shortages in storage capacity and a collapse in demand due to the coronavirus pandemic.

    Earlier in April, OPEC+ countries – an expanded format of the Organisation of Petroleum Exporting Countries (OPEC)  agreed on a deal to cut production by 9.7 million barrels per day for May and June,

    It however failed to buoy prices back to their previous levels.

    IAA


    Edited By: Isaac Aregbesola (NAN)

     

     

  •  U S President Donald Trump says his country is looking to add 75 million barrels of oil to its strategic reserve amid the collapse in oil prices He told a daily news confetence on Monday at the White House that the addition would top out the national petroleum reserve for the first time in a long time U S crude oil prices plummeted to their lowest levels ever as contracts settled deep in negative territory for the first time amid tight shortages in storage capacity with the collapse in demand because of the coronavirus West Texas Intermediate WTI the U S benchmark settled for the day at negative 37 dollars a barrel for May deliveries as contracts are set to expire on Tuesday The problem of physical delivery was weighing heavily leading to a single day decline of more than 200 per cent The price moved back up somewhat but was still in negative territory as US stock markets headed to their close with equities under pressure However longer term WTI contracts were faring somewhat better while still down on the day signalling optimism that economic production will improve by the end of 2020 and indicating the storage space issue was acutely pushing down the immediate term price June contracts were at just over 20 dollars per barrel and deliveries for later in the year are priced even higher Brent crude was lower by about 8 per cent and was trading at 25 dollars a barrel Oil prices have been hit by both the coronavirus bringing major economic sectors to a near standstill and a price war between Russia and Saudi Arabia that kicked off at about the same time the pandemic was spreading Earlier this month OPEC countries an expanded format of the Organisation of the Petroleum Exporting Countries OPEC agreed on a deal to cut production by 9 7 million barrels per day for May and June but failed to support prices back to previous levels Edited By Emmanuel Yashim NAN
    Trump says U.S. to put 75m barrels of oil into strategic reserve
     U S President Donald Trump says his country is looking to add 75 million barrels of oil to its strategic reserve amid the collapse in oil prices He told a daily news confetence on Monday at the White House that the addition would top out the national petroleum reserve for the first time in a long time U S crude oil prices plummeted to their lowest levels ever as contracts settled deep in negative territory for the first time amid tight shortages in storage capacity with the collapse in demand because of the coronavirus West Texas Intermediate WTI the U S benchmark settled for the day at negative 37 dollars a barrel for May deliveries as contracts are set to expire on Tuesday The problem of physical delivery was weighing heavily leading to a single day decline of more than 200 per cent The price moved back up somewhat but was still in negative territory as US stock markets headed to their close with equities under pressure However longer term WTI contracts were faring somewhat better while still down on the day signalling optimism that economic production will improve by the end of 2020 and indicating the storage space issue was acutely pushing down the immediate term price June contracts were at just over 20 dollars per barrel and deliveries for later in the year are priced even higher Brent crude was lower by about 8 per cent and was trading at 25 dollars a barrel Oil prices have been hit by both the coronavirus bringing major economic sectors to a near standstill and a price war between Russia and Saudi Arabia that kicked off at about the same time the pandemic was spreading Earlier this month OPEC countries an expanded format of the Organisation of the Petroleum Exporting Countries OPEC agreed on a deal to cut production by 9 7 million barrels per day for May and June but failed to support prices back to previous levels Edited By Emmanuel Yashim NAN
    Trump says U.S. to put 75m barrels of oil into strategic reserve
    Foreign3 years ago

    Trump says U.S. to put 75m barrels of oil into strategic reserve

    U.S. President Donald Trump says his country is looking to add 75 million barrels of oil to its strategic reserve amid the collapse in oil prices.

    He told a daily news confetence on Monday at the White House that the addition would “top out” the national petroleum reserve for the “first time in a long time.”

    U.S. crude oil prices plummeted to their lowest levels ever, as contracts settled deep in negative territory for the first time, amid tight shortages in storage capacity with the collapse in demand because of the coronavirus.

    West Texas Intermediate (WTI), the U.S. benchmark, settled for the day at negative 37 dollars a barrel for May deliveries, as contracts are set to expire on Tuesday.

    The problem of physical delivery was weighing heavily, leading to a single day decline of more than 200 per cent.

    The price moved back up somewhat, but was still in negative territory, as US stock markets headed to their close, with equities under pressure.

    However, longer term WTI contracts were faring somewhat better, while still down on the day, signalling optimism that economic production will improve by the end of 2020, and indicating the storage space issue was acutely pushing down the immediate term price.

    June contracts were at just over 20 dollars per barrel and deliveries for later in the year are priced even higher.

    Brent crude was lower by about 8 per cent, and was trading at 25 dollars a barrel.

    Oil prices have been hit by both the coronavirus bringing major economic sectors to a near standstill, and a price war between Russia and Saudi Arabia that kicked off at about the same time the pandemic was spreading.

    Earlier this month, OPEC+ countries – an expanded format of the Organisation of the Petroleum Exporting Countries (OPEC) – agreed on a deal to cut production by 9.7 million barrels per day for May and June, but failed to support prices back to previous levels.


    Edited By: Emmanuel Yashim (NAN)

     

  •  United States crude oil prices fell sharply plummeting to their lowest levels since 1986 as a collapse in demand because of the coronavirus and the resulting economic shutdowns comes atop shortages in storage capacity West Texas Intermediate the U S benchmark dropped to nearly 10 dollars a barrel a 45 per cent decline before ticking up a couple of percentage points However longer term contracts were faring somewhat better while still down on the day signalling optimism that economic production will improve by the end of 2020 June contracts were at just over 22 dollars per barrel and deliveries for later in the year are prices even higher Brent crude was lower by 5 7 per cent and was trading at 26 dollars a barrel Oil prices have been hit by both the coronavirus bringing major economic sectors to a near standstill and a price war between Russia and Saudi Arabia that kicked off at about the same time the pandemic was spreading Earlier this month OPEC countries an expanded format of the Organisation of Petroleum Exporting Countries OPEC agreed on a deal to cut production by 9 7 million barrels per day for May and June but failed to support prices back to previous levels Despite the agreement on cuts which may not be coming quickly enough storage capacity is being tested helping to bring prices on short term contracts lower The energy sector was leading U S stocks lower on Monday with the S amp P 500 down about 0 3 per cent at noon with the index off its session lows There are growing concerns about how the low prices will hurt the U S energy sector and have significant consequences for jobs at a time when unemployment has surged with more than 22 million people being laid off since the middle of March As the falling oil prices hit energy stocks in Australia the benchmark S amp 200 index fell 134 5 points or 2 45 per cent to end at 5 353 and the broader All Ordinaries index was down 130 points or 2 34 per cent at 5 414 7 Japan s benchmark Nikkei 225 Stock Average lost 228 14 points or 1 15 per cent to close at 19 669 12 as investors locked in profits after recent gains IAA Edited By Isaac Aregbesola NAN
    U.S. crude oil nosedives, touches lowest price in 3 decades
     United States crude oil prices fell sharply plummeting to their lowest levels since 1986 as a collapse in demand because of the coronavirus and the resulting economic shutdowns comes atop shortages in storage capacity West Texas Intermediate the U S benchmark dropped to nearly 10 dollars a barrel a 45 per cent decline before ticking up a couple of percentage points However longer term contracts were faring somewhat better while still down on the day signalling optimism that economic production will improve by the end of 2020 June contracts were at just over 22 dollars per barrel and deliveries for later in the year are prices even higher Brent crude was lower by 5 7 per cent and was trading at 26 dollars a barrel Oil prices have been hit by both the coronavirus bringing major economic sectors to a near standstill and a price war between Russia and Saudi Arabia that kicked off at about the same time the pandemic was spreading Earlier this month OPEC countries an expanded format of the Organisation of Petroleum Exporting Countries OPEC agreed on a deal to cut production by 9 7 million barrels per day for May and June but failed to support prices back to previous levels Despite the agreement on cuts which may not be coming quickly enough storage capacity is being tested helping to bring prices on short term contracts lower The energy sector was leading U S stocks lower on Monday with the S amp P 500 down about 0 3 per cent at noon with the index off its session lows There are growing concerns about how the low prices will hurt the U S energy sector and have significant consequences for jobs at a time when unemployment has surged with more than 22 million people being laid off since the middle of March As the falling oil prices hit energy stocks in Australia the benchmark S amp 200 index fell 134 5 points or 2 45 per cent to end at 5 353 and the broader All Ordinaries index was down 130 points or 2 34 per cent at 5 414 7 Japan s benchmark Nikkei 225 Stock Average lost 228 14 points or 1 15 per cent to close at 19 669 12 as investors locked in profits after recent gains IAA Edited By Isaac Aregbesola NAN
    U.S. crude oil nosedives, touches lowest price in 3 decades
    Foreign3 years ago

    U.S. crude oil nosedives, touches lowest price in 3 decades

    United States crude oil prices fell sharply, plummeting to their lowest levels since 1986, as a collapse in demand because of the coronavirus and the resulting economic shutdowns comes atop shortages in storage capacity.

    West Texas Intermediate, the U.S. benchmark, dropped to nearly 10 dollars a barrel, a 45-per-cent decline, before ticking up a couple of percentage points.

    However, longer term contracts were faring somewhat better, while still down on the day, signalling optimism that economic production will improve by the end of 2020.

    June contracts were at just over 22 dollars per barrel and deliveries for later in the year are prices even higher.

    Brent crude was lower by 5.7 per cent, and was trading at 26 dollars a barrel.

    Oil prices have been hit by both the coronavirus bringing major economic sectors to a near standstill, and a price war between Russia and Saudi Arabia that kicked off at about the same time the pandemic was spreading.

    Earlier this month, OPEC+ countries – an expanded format of the Organisation of Petroleum Exporting Countries (OPEC) – agreed on a deal to cut production by 9.7 million barrels per day for May and June, but failed to support prices back to previous levels.

    Despite the agreement on cuts, which may not be coming quickly enough, storage capacity is being tested, helping to bring prices on short-term contracts lower.

    The energy sector was leading U.S. stocks lower on Monday, with the S&P 500 down about 0.3 per cent at noon, with the index off its session lows.

    There are growing concerns about how the low prices will hurt the U.S. energy sector and have significant consequences for jobs, at a time when unemployment has surged, with more than 22 million people being laid off since the middle of March.

    As the falling oil prices hit energy stocks in Australia, the benchmark S&200 index fell 134.5 points, or 2.45 per cent, to end at 5,353 and the broader All Ordinaries index was down 130 points, or 2.34 per cent, at 5,414.7.

    Japan’s benchmark Nikkei 225 Stock Average lost 228.14 points, or 1.15 per cent, to close at 19,669.12 as investors locked in profits after recent gains.

    IAA


    Edited By: Isaac Aregbesola (NAN)

  •  The Organisation of Petroleum Exporting Countries OPEC has commiserated with President Muhammadu Buhari over the death of his Chief of Staff Malam Abba Kyari OPEC made this known in a statement issued by its Secretary General Malam Mohammad Barkindo on Saturday Kyari died in a Lagos hospital on Friday from complications related to COVID 19 according to reports It was with profound shock and sadness that I learnt of the tragic passing of Malam Abba Kyari May his gentle soul rest in eternal peace We have lost an outstanding public servant par excellence and all Nigerians will feel his loss On behalf of the Organisation of Petroleum Exporting Countries OPEC I would like to offer our sincere condolences to you Mr President his family and the entire people of our great country Nigeria he said He described Kyari as a gallant public servant fiercely loyal to the common good When one was in his company it was very clear that he was somebody who joined public service for all the right reasons While this is of course a time of profound sorrow we also take succour from his exemplary life his courage his dedication to duty and love of country Kyari s passing is another stark reminder of how Covid 19 has cast a terrible shadow over all of humanity At this dreadful hour we give thanks for your strong leadership and look to the timeless principles of cooperation and fraternity among all nations and peoples of the world to guide us through the darkest period in living memory he added Barkindo prayed Almighty Allah to give the President and Nigerians the fortitude to bear this rude shock Please know that you are in our thoughts and prayers at this tragic time Please accept Excellency the assurances of my highest consideration and respect Also the Group Managing Director of the Nigerian National Corporation NNPC Malam Mele Kyari said Abba Kyari would be remembered for his commitment and dedication to work Kyari on his twitter handle MKKyari wrote Vintage Malam Abba Kyari Bold factual passionate and with profound faith in the persuasions of Mr President May Allah forgive his shortcomings and have mercy upon him May Allah forgive Malam Abba Kyari and have mercy upon him Was truly a good man profoundly faithful and loyal to our country Edited By Donald Ugwu NAN
    OPEC commiserates with Buhari over Kyari’s death
     The Organisation of Petroleum Exporting Countries OPEC has commiserated with President Muhammadu Buhari over the death of his Chief of Staff Malam Abba Kyari OPEC made this known in a statement issued by its Secretary General Malam Mohammad Barkindo on Saturday Kyari died in a Lagos hospital on Friday from complications related to COVID 19 according to reports It was with profound shock and sadness that I learnt of the tragic passing of Malam Abba Kyari May his gentle soul rest in eternal peace We have lost an outstanding public servant par excellence and all Nigerians will feel his loss On behalf of the Organisation of Petroleum Exporting Countries OPEC I would like to offer our sincere condolences to you Mr President his family and the entire people of our great country Nigeria he said He described Kyari as a gallant public servant fiercely loyal to the common good When one was in his company it was very clear that he was somebody who joined public service for all the right reasons While this is of course a time of profound sorrow we also take succour from his exemplary life his courage his dedication to duty and love of country Kyari s passing is another stark reminder of how Covid 19 has cast a terrible shadow over all of humanity At this dreadful hour we give thanks for your strong leadership and look to the timeless principles of cooperation and fraternity among all nations and peoples of the world to guide us through the darkest period in living memory he added Barkindo prayed Almighty Allah to give the President and Nigerians the fortitude to bear this rude shock Please know that you are in our thoughts and prayers at this tragic time Please accept Excellency the assurances of my highest consideration and respect Also the Group Managing Director of the Nigerian National Corporation NNPC Malam Mele Kyari said Abba Kyari would be remembered for his commitment and dedication to work Kyari on his twitter handle MKKyari wrote Vintage Malam Abba Kyari Bold factual passionate and with profound faith in the persuasions of Mr President May Allah forgive his shortcomings and have mercy upon him May Allah forgive Malam Abba Kyari and have mercy upon him Was truly a good man profoundly faithful and loyal to our country Edited By Donald Ugwu NAN
    OPEC commiserates with Buhari over Kyari’s death
    General news3 years ago

    OPEC commiserates with Buhari over Kyari’s death

    The Organisation of Petroleum Exporting Countries (OPEC) has commiserated with President Muhammadu Buhari over the death of his Chief of Staff Malam Abba Kyari.OPEC made this known in a statement issued by its Secretary General, Malam Mohammad Barkindo, on Saturday. Kyari died in a Lagos hospital on Friday from complications related to COVID-19, according to reports.“It was with profound shock and sadness that I learnt of the tragic passing of Malam Abba Kyari. May his gentle soul rest in eternal peace.“We have lost an outstanding public servant par excellence and all Nigerians will feel his loss.“On behalf of the Organisation of Petroleum Exporting Countries (OPEC), I would like to offer our sincere condolences to you, Mr President, his family and the entire people of our great country, Nigeria,’’ he saidHe described Kyari as a gallant public servant, fiercely loyal to the common good.“When one was in his company, it was very clear that he was somebody who joined public service for all the right reasons.“While this is of course a time of profound sorrow, we also take succour from his exemplary life, his courage, his dedication to duty and love of country.“Kyari’s passing is another stark reminder of how Covid-19 has cast a terrible shadow over all of humanity.“At this dreadful hour, we give thanks for your strong leadership and look to the timeless principles of cooperation and fraternity among all nations and peoples of the world to guide us through the darkest period in living memory,’’ he added Barkindo prayed Almighty Allah to give the President, and Nigerians the fortitude to bear this rude shock.“Please know that you are in our thoughts and prayers at this tragic time. Please accept, Excellency, the assurances of my highest consideration and respect.Also, the Group Managing Director of the Nigerian National Corporation (NNPC), Malam Mele Kyari, said Abba Kyari would be remembered for his commitment and dedication to work.Kyari on his twitter handle @MKKyari wrote “Vintage Malam Abba Kyari. Bold, factual, passionate and with profound faith in the persuasions of Mr President. May Allah forgive his shortcomings and have mercy upon him.“May Allah forgive Malam Abba Kyari and have mercy upon him. Was truly a good man, profoundly faithful and loyal to our country.”Edited By: Donald Ugwu (NAN)

  •  The Organisation of Petroleum Exporting Countries OPEC has reassured that it will spearhead the joint efforts in re establishing healthy oil market fundamentals and restoring balance to the oil market in support of the global economy stability The OPEC Secretary General Mr Mohammed Barkindo gave the assurance in a statement to the International Monetary and Financial Committee IMFC Meeting of Ministers and Governors at the ongoing World Bank IMF virtual meeting OPEC would like to take this opportunity to reaffirm its long standing commitment to supporting oil market stability for the mutual benefit of consuming and producing nations thus contributing significantly to the health of the global economy The historic success of the Declaration of Cooperation has underscored the Organisation s leadership in ensuring a stable and constructive environment in which future energy requirements can be met Given the current global crisis brought on by the COVID 19 pandemic the need for international coordination has become ever more apparent OPEC reiterates its commitment to spearhead the joint efforts in re establishing healthy oil market fundamentals and restoring balance to the oil market in support of the global economy he said He also said that the global oil market showed relative stability and ended 2019 on a positive note in spite of economic headwinds and high uncertainties regarding ongoing trade disputes Brexit and geopolitical developments throughout the year According to him at the beginning of 2020 there were signals that the economy would rebound from the slowdown in the second half of the previous year with global economic activity including global trade and industrial production Despite strong growth in non OPEC production the global oil market remained well balanced owing to the strong conformity of OPEC and participating non OPEC producing countries in the Declaration of Cooperation which played a major role in improving oil market conditions and market stability However instead of the expected pick up in activity in 2020 the global economy and consequently the global oil market are experiencing one of the most severe crises in recent history caused by the COVID 19 pandemic Countries around the world have virtually shut down imposing travel restrictions and mandating social distancing measures in an effort to contain the pandemic These measures have not only severely affected global economic growth they have also caused a historic demand shock in the oil market which has led to extreme volatility in oil prices he added Barkindo said that concerns about the grave oil market imbalance which could lead to a large build in global oil stocks in coming months led to oil prices dropping significantly in late March to reach the lowest levels in nearly 18 years He said that oil prices lost about two thirds of their value over the first quarter of 2020 Barkindo also said that given the current market conditions and the massive oil demand destruction so far comprehensive international cooperation was called for to stabilise the global oil market and prevent extensive and lasting damage to the oil industry On world economic forecast he said that following global economic growth of 2 9 per cent in 2019 the world economy was forecast to face a severe recession in 2020 declining by 1 1 per cent Despite slight signs of improvement at the beginning of the year expectations for global economic growth were burdened by the carry over of weak fourth quarter of 2019 data in several key economies which had been significantly worsened by the strong impact of the COVID 19 pandemic Economic developments in times of COVID 19 are proving to be unique Contrary to comparable economic shocks the global economy is witnessing a combination of a supply and a demand shock together with severe disruption in the financial markets Moreover the impact of COVID 19 is exacerbated by high global debt levels the ongoing general slowdown in world trade as well as challenges in manufacturing caused by slowing capital expenditure in some key economies and by the global deceleration of the automotive industry he added The OPEC scribe said that the underlying key assumption for the 2020 GDP growth forecast was that the impact of COVID 19 related developments outside China would continue well into second quarter of 2020 According to him most regions are forecast to see a slowdown through second quarter of 2020 recovering only toward the second half of third quarter of the year He noted that China s trajectory was forecast to see a sharp deceleration in first quarter and to a lesser extent in the second quarter before recovering in second half of 2020 By the fourth quarter global activity is assumed to have almost normalised Nevertheless depending on future developments further downside risk remains Positively the sharp downturn is counter balanced by unprecedented government led stimulus measures designed to offset the negative economic consequences he said NAN
    OPEC reassures commitment to global economic stability
     The Organisation of Petroleum Exporting Countries OPEC has reassured that it will spearhead the joint efforts in re establishing healthy oil market fundamentals and restoring balance to the oil market in support of the global economy stability The OPEC Secretary General Mr Mohammed Barkindo gave the assurance in a statement to the International Monetary and Financial Committee IMFC Meeting of Ministers and Governors at the ongoing World Bank IMF virtual meeting OPEC would like to take this opportunity to reaffirm its long standing commitment to supporting oil market stability for the mutual benefit of consuming and producing nations thus contributing significantly to the health of the global economy The historic success of the Declaration of Cooperation has underscored the Organisation s leadership in ensuring a stable and constructive environment in which future energy requirements can be met Given the current global crisis brought on by the COVID 19 pandemic the need for international coordination has become ever more apparent OPEC reiterates its commitment to spearhead the joint efforts in re establishing healthy oil market fundamentals and restoring balance to the oil market in support of the global economy he said He also said that the global oil market showed relative stability and ended 2019 on a positive note in spite of economic headwinds and high uncertainties regarding ongoing trade disputes Brexit and geopolitical developments throughout the year According to him at the beginning of 2020 there were signals that the economy would rebound from the slowdown in the second half of the previous year with global economic activity including global trade and industrial production Despite strong growth in non OPEC production the global oil market remained well balanced owing to the strong conformity of OPEC and participating non OPEC producing countries in the Declaration of Cooperation which played a major role in improving oil market conditions and market stability However instead of the expected pick up in activity in 2020 the global economy and consequently the global oil market are experiencing one of the most severe crises in recent history caused by the COVID 19 pandemic Countries around the world have virtually shut down imposing travel restrictions and mandating social distancing measures in an effort to contain the pandemic These measures have not only severely affected global economic growth they have also caused a historic demand shock in the oil market which has led to extreme volatility in oil prices he added Barkindo said that concerns about the grave oil market imbalance which could lead to a large build in global oil stocks in coming months led to oil prices dropping significantly in late March to reach the lowest levels in nearly 18 years He said that oil prices lost about two thirds of their value over the first quarter of 2020 Barkindo also said that given the current market conditions and the massive oil demand destruction so far comprehensive international cooperation was called for to stabilise the global oil market and prevent extensive and lasting damage to the oil industry On world economic forecast he said that following global economic growth of 2 9 per cent in 2019 the world economy was forecast to face a severe recession in 2020 declining by 1 1 per cent Despite slight signs of improvement at the beginning of the year expectations for global economic growth were burdened by the carry over of weak fourth quarter of 2019 data in several key economies which had been significantly worsened by the strong impact of the COVID 19 pandemic Economic developments in times of COVID 19 are proving to be unique Contrary to comparable economic shocks the global economy is witnessing a combination of a supply and a demand shock together with severe disruption in the financial markets Moreover the impact of COVID 19 is exacerbated by high global debt levels the ongoing general slowdown in world trade as well as challenges in manufacturing caused by slowing capital expenditure in some key economies and by the global deceleration of the automotive industry he added The OPEC scribe said that the underlying key assumption for the 2020 GDP growth forecast was that the impact of COVID 19 related developments outside China would continue well into second quarter of 2020 According to him most regions are forecast to see a slowdown through second quarter of 2020 recovering only toward the second half of third quarter of the year He noted that China s trajectory was forecast to see a sharp deceleration in first quarter and to a lesser extent in the second quarter before recovering in second half of 2020 By the fourth quarter global activity is assumed to have almost normalised Nevertheless depending on future developments further downside risk remains Positively the sharp downturn is counter balanced by unprecedented government led stimulus measures designed to offset the negative economic consequences he said NAN
    OPEC reassures commitment to global economic stability
    oil and Gas3 years ago

    OPEC reassures commitment to global economic stability

    The Organisation of Petroleum Exporting Countries (OPEC) has reassured that it will spearhead the joint efforts in re-establishing healthy oil market fundamentals and restoring balance to the oil market in support of the global economy stability.The OPEC Secretary-General, Mr Mohammed Barkindo, gave the assurance in a statement to the International Monetary and Financial Committee (IMFC) Meeting of Ministers and Governors, at the ongoing World Bank/IMF virtual meeting.“OPEC would like to take this opportunity to reaffirm its long-standing commitment to supporting oil market stability for the mutual benefit of consuming and producing nations; thus, contributing significantly to the health of the global economy.“The historic success of the Declaration of Cooperation has underscored the Organisation’s leadership in ensuring a stable and constructive environment in which future energy requirements can be met.“Given the current global crisis brought on by the COVID-19 pandemic, the need for international coordination has become ever more apparent.“OPEC reiterates its commitment to spearhead the joint efforts in re-establishing healthy oil market fundamentals and restoring balance to the oil market in support of the global economy,’’ he said.He also said that the global oil market showed relative stability and ended 2019 on a positive note, in spite of economic headwinds and high uncertainties regarding ongoing trade disputes, Brexit and geopolitical developments throughout the year.According to him, at the beginning of 2020, there were signals that the economy would rebound from the slowdown in the second half of the previous year, with global economic activity, including global trade and industrial production.“Despite strong growth in non-OPEC production, the global oil market remained well balanced, owing to the strong conformity of OPEC and participating non-OPEC producing countries in the Declaration of Cooperation which played a major role in improving oil market conditions and market stability.“However, instead of the expected pick-up in activity in 2020, the global economy and, consequently, the global oil market are experiencing one of the most severe crises in recent history, caused by the COVID-19 pandemic.“Countries around the world have virtually shut down, imposing travel restrictions and mandating social distancing measures in an effort to contain the pandemic.“These measures have not only severely affected global economic growth, they have also caused a historic demand shock in the oil market, which has led to extreme volatility in oil prices,’’ he added.Barkindo said that concerns about the grave oil market imbalance, which could lead to a large build in global oil stocks in coming months, led to oil prices dropping significantly in late March to reach the lowest levels in nearly 18 years.He said that oil prices lost about two-thirds of their value over the first quarter of 2020.Barkindo also said that  given the current market conditions and the massive oil demand destruction so far, comprehensive international cooperation was called for to stabilise the global oil market and prevent extensive and lasting damage to the oil industry.On world economic forecast, he said that following global economic growth of 2.9 per cent in 2019, the world economy was forecast to face a severe recession in 2020, declining by 1.1 per cent.“Despite slight signs of improvement at the beginning of the year, expectations for global economic growth were burdened by the carry-over of weak  fourth quarter of 2019 data in several key economies, which had been significantly worsened by the strong impact of the COVID-19 pandemic.“ Economic developments in times of COVID-19 are proving to be unique. Contrary to comparable economic shocks, the global economy is witnessing a combination of a supply and a demand shock, together with severe disruption in the financial markets.“ Moreover, the impact of COVID-19 is exacerbated by high global debt levels, the ongoing general slowdown in world trade, as well as challenges in manufacturing caused by slowing capital expenditure in some key economies and by the global deceleration of the automotive industry,’’ he added.The OPEC scribe said that the underlying key assumption for the 2020 GDP growth forecast was that the impact of COVID-19 related developments outside China would continue well into second quarter of 2020.According to him, most regions are forecast to see a slowdown through second quarter of 2020, recovering only toward the second half of third quarter of the year.He noted that China’s trajectory was forecast to see a sharp deceleration in first quarter and to a lesser extent in the second quarter before recovering in  second half of 2020.“By the fourth quarter, global activity is assumed to have almost normalised. Nevertheless, depending on future developments, further downside risk remains.“Positively, the sharp downturn is counter-balanced by unprecedented government-led stimulus measures designed to offset the negative economic consequences,’’ he said. (NAN)

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