Monday, April 7, 2025
27 C
Lagos

OPEC Targets 30m Barrels Per Day Production

OPEC decided to keep its output target at 30 million barrels a day Friday but left it to members to restrain their overproduction, reflecting the cartel’s inability to strictly enforce its own limits in attempts to control the world supply of crude.

While OPEC accounts for over a third of the world’s oil, its power to determine supply and demand has been steadily eroding as outsiders capture large shares of the market. It gave up imposing quotas on individual members four years ago after these were consistently ignored.

That has led to an overhang in recent months of more than 1 million barrels a day of OPEC production beyond the target. But the likelihood of continued overproduction persists.

OPEC powerhouse Saudi Arabia is fighting to keep market share against U.S. shale oil, Iran plans to increase production in anticipation of an end to sanctions that have crimped its crude exports and other countries are trying to compensate for low prices by selling more. The international price of crude was down 20 cents at $61.83 after recent announcement.

Announcing the decision to keep the present target, an OPEC statement urged members “to adhere to it,” and Abdullah al-Badri, the organisation’s secretary general, also urged member nations to “abide with that 30 million.” But he acknowledged that, as in the past, countries had only been assigned “indicators” — not quotas — in attempts to hew to the target.

In contrast, Saudi and Iranian comments Friday reflected the countries’ determination to produce what they decide.

spot_img
spot_img
spot_img

Hot this week

Stanbic IBTC Bank Budgets N130m in 4th Season of Reward4Saving Promo

Stanbic IBTC Bank, a leading financial services provider in...

STI CEO, Soyinka to Nigerians: Cultivate a Culture of Insurance

The Managing Director and Chief Executive Officer of Sovereign...

Sterling Bank Champions Cancellation of Transfer Charges

In a landmark move that sets a new benchmark...

Stanbic IBTC Bank PMI: Sharpest Rise in New Orders in 14 Months

The recovery in the Nigerian private sector gathered strength...

Barth Nnaji to Deliver The Bullion Lecture 2025

Globally acclaimed energy expert, Professor Barth Nnaji, is to...

Topics

Fidelity Bank Chairman, Chike-Obi Honoured with Lifetime Achievement Award

For his exceptional leadership and contributions to banking and...

Access Bank Unveils N1bn Reward Promo for Customers

Access Bank is rewarding its loyal customers with cash...

NIA Names Tope Smart as Deputy Chairman

Mr. Tope Smart, Group Managing Director/CEO, NEM Insurance Plc...

Akinwumi Adesina of Nigeria: Historic Election as 8th President of African Development Bank

I have been given a great responsibility,” Akinwumi A. Adesina said upon his election as the 8th President of the African Development Bank Group. The victory was the first by a Nigerian in the 50th year history of the Bank. The President-Elect said he was “humbled by this remarkable vote of confidence in me” on the part of the Bank’s Board of Governors, who met during the Bank Group’s 50th Annual Meetings in Abidjan, Côte d’Ivoire.

REPORT: Supply Chains Must Change to Support Global Energy Demand

The development of new, unconventional energy sources, such as...

Siemens, Anglo American Partner on Digital Skills Development in Africa

Currently, one of the most debated topics influencing innovation...

COVID-19: Stanbic IBTC Urge Nigerians to Maintain Strong Mental Health

  Dr. Sylvanus Jatto Amidst the outbreak of the coronavirus (Covid-19)...

Danbatta Receives APPON Award, Assures of Broadband Support for e-Procurement

L-R: Prof Umar Garba Danbatta, Executive Vice Chairman/Chief Executive Officer,...
spot_img

Related Articles

Popular Categories

spot_imgspot_img