Oil price rises further as OPEC intensifies efforts on supply cut

The price of crude oil has recorded further spike opening the week yesterday at $62.90 per barrel, a 20 cent mark-up on last weekend’s closing price of $62.90.

This was at the backdrop of the Organisation of Petroleum Exporting Countries, OPEC, intensifying efforts to withdraw excess oil from the volatile market yesterday.
Specifically, the prices of Brent, West Texas Intermediate, WTI and OPEC basket stood at $62.90, $53.92 and $60.90 respectively.
At the current price, Nigeria generates $2.90 in excess of its $60.00 per barrel 2019 budget reference price.

Meanwhile, OPEC disclosed that it looks forward to achieving increased market stability this year.
In its latest market report, OPEC stated: “In 2019, world oil demand is forecast to rise by 1.29 mb/d, also in line with last month’s projections. As a result, total world oil demand is projected to reach 100.08 mb/d for the year. Oil demand growth is expected to originate mainly from Other Asia, led by India, followed by China and OECD Americas.

“OECD countries are anticipated to rise by 0.25 mb/d in 2019, while non-OECD countries are projected to drive oil demand growth by adding an estimated 1.04 mb/d. World Oil Supply Non-OPEC oil supply growth in 2018 – including the State of Qatar – is estimated at 2.61 mb/d, an upward revision of 0.05 mb/d from the previous month’s assessment to average 62.06 mb/d.
“This compares to an average of 60.03 mb/d – excluding Qatar liquids supply – in the December MOMR. The US, Canada, Russia and Kazakhstan are seen to be the main growth drivers, while Mexico and Norway are estimated to show the largest declines.

“Non-OPEC oil supply growth in 2019 was revised down by 0.06 mb/d to 2.10 mb/d and is now forecast to average 64.16 mb/d for the year. This was mainly due to a downward revision in Canada’s supply forecast. The US, Brazil, Russia and the UK are projected to be the main drivers for this year’s growth, while Mexico and Norway are expected to see sizeable declines, along with a mild y-o-y decline of 0.05 mb/d in Canada.”