Brent Rises To $70.46 Per Barrel

The price of Brent rose to $70.46 per barrel from $68.50, recorded the previous day on the decisions of Organisation of Petroleum Exporting Countries, OPEC and Non-OPEC ministers, to impact the volatile market.

These decisions include; the commitment of participating countries in the Declaration of Cooperation, DoC; the gradual return of two million barrels a day (mb/d) of the adjustments to the market; and the extension of the compensation period until the end of September 2021, as requested by some underperforming countries, were all taken at the 17th OPEC and non-OPEC Ministerial Meeting (ONOMM), held virtually on the 1st of June, 2021.

However, in a statement, OPEC, stated: “The Meeting noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement and OECD stocks falling as the economic recovery continued in most parts of the world as vaccination programmes accelerated.

“The Meeting welcomed the positive performance of Participating Countries in the Declaration of Cooperation (DoC). Overall conformity to the production adjustments was 114% in April (including Mexico), reinforcing the trend of high conformity by Participating Countries.”

It also stated: “In view of current oil market fundamentals and the consensus on its outlook, the Meeting reaffirmed the existing commitment of the participating countries in the DoC to a stable market in the mutual interest of producing nations; the efficient, economic and secure supply to consumers; and a fair return on invested capital.

“Reconfirmed the existing commitment of the 10th OPEC and non-OPEC Ministerial Meeting in April 2020, amended in June, September, and December 2020, as well as in January and April 2021 to gradually return 2 million barrels a day (mb/d) of the adjustments to the market, with the pace being determined according to market conditions.

“Reiterated the critical importance of adhering to full conformity, and taking advantage of the extension of the compensation period until the end of September 2021, as requested by some underperforming countries. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.

“Reconfirmed the decision made at the 15th OPEC and non-OPEC Ministerial Meeting with regards to production adjustments for the month of July 2021, given the observed market fundamentals.”

It also added: “Emphasized the need to continue to consult and closely monitor market fundamentals and maintain the monthly OPEC and non-OPEC Ministerial Meetings until the end of the decision made at the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020.”