BONNY LIGHT, NIGERIA'S BEST OIL RECEIVES GLOBAL PRICE SPIKE
BONNY LIGHT, NIGERIA'S BEST OIL RECEIVES GLOBAL PRICE SPIKE

BONNY LIGHT, NIGERIA'S BEST OIL RECEIVES GLOBAL PRICE SPIKE

Price of Bonny Light, Nigeria's Most Demanding Oil Spike Globally - by Adedayo Osho, Abuja 23rd June, 2020

 

 
The price of Bonny Light has springed back to 40 dollar per barrel. It was effected in a recent joint meeting over global market between Organisation of Petroleum Exporting Countries, OPEC, and the Gas Exporting Countries Forum, GECF.

 

 
Bonny Light oil is the highest grade among Nigerian crude oil, with high API gravity (low specific gravity), produced in the Niger Delta basin and named after the prolific city of Bonny. Bonny lies in the southern most edge of West Africa in Nigeria and in close proximity to the city of Port Harcourt, Rivers State. 
 

 

Despite the rise, Nigeria would still be challenged to fund its 2020 budget, which was benchmarked on 28 dollar and 1.8 million barrels per day, mb/d output, especially as the cost of production remains high at $30 per barrel.
 

 

General increase in prices, has been attributed to global ease of the coronavirus pandemic lockdown, an exercise which has encouraged increased socio-economic activities, more petroleum products utilisation and hope on market stability.
 

 

During the meeting, OPEC and GECF agreed to work together toward achieving increased stability in the market.
 

 

OPEC Secretary-General, His Excellency Mohammad Sanusi Barkindo, met with his counterpart at the Gas Exporting Countries Forum, His Excellency Yury Sentyurin, for the inaugural Technical Meeting of the OPEC-GECF Energy Dialogue on 22 June, 2020 via video-conference. The meeting tend to build upon the bilateral Memorandum of Understanding (MoU) signed last year.
 

 

Yesterday's meeting reflected on the impact of the COVID-19 pandemic on the global economy as well as oil and gas markets. Exchanges were also held on medium and long-term energy market assumptions and perspectives, and technical collaboration on data and statistics.
 

 

A statement released by OPEC Secretariat noted that "HE Barkindo has briefed the GECF’s Secretary-General on recent decisions taken by participants of the Declaration of Cooperation at the 9th and 10th and 11th (Extraordinary) OPEC and Non-OPEC Ministerial meetings held on 9-10 and 12 April and 6 June 2020, respectively.
 

 

"These meetings decided to adjust overall crude oil production by 9.7 mb/d for May and June, 2020, with a further extension until the end of July agreed at the 11th meeting. Further adjustments are to take place for a total of two years under the initial agreement, until 31 December 2020 by 7.7 mb/d; and from 1 January 2021 to 30 April 2022 by 5.8 mb/d."
 

 

It further stressed that "HE Barkindo spoke about the many great things the GECF and OPEC have in common, ranging from same member countries, to the essential nature of both oil and gas for the development of humankind and organizational goals."

 

 
HE Sentyurin thanked the OPEC Secretary-General for supporting the building blocks of both organizations mutually beneficial dialogue.
 

 

He emphasized that since HE Barkindo visited the GECF Headquarters in Doha, Qatar in 2018, cooperation between the two organizations has been developing.
 

 

He recalled the signing of the MoU to "exchanging of knowledge, experience, views, information, data and practices in the areas of mutual interest," last October on the sidelines of Russia Energy week, calling it a milestone between the organizations.
HE Sentyurin added that this 1st technical dialogue represents a "new chapter in our collaboration."

 

 
GECF’s Secretary-General praised the joint work of OPEC and the GECF at various international fora, including the Joint Oil and Gas Data Initiative, the International Energy Agency and the International Energy Forum.high at 30 dollar per barrel.

 

 
General increase in prices, has been attributed to global ease of the coronavirus pandemic lockdown, an exercise which has encouraged increased socio-economic activities, more petroleum products utilisation and hope on market stability.
 

 

During the meeting, OPEC and GECF agreed to work together toward achieving increased stability in the market.

 

 
OPEC Secretary-General, His Excellency Mohammad Sanusi Barkindo, met with his counterpart at the Gas Exporting Countries Forum, His Excellency Yury Sentyurin, for the inaugural Technical Meeting of the OPEC-GECF Energy Dialogue on 22 June, 2020 via video-conference. The meeting tend to build upon the bilateral Memorandum of Understanding (MoU) signed last year.
 

 

Yesterday's meeting reflected on the impact of the COVID-19 pandemic on the global economy as well as oil and gas markets. Exchanges were also held on medium and long-term energy market assumptions and perspectives, and technical collaboration on data and statistics.
 

 

A statement released by OPEC Secretariat noted that "HE Barkindo has briefed the GECF’s Secretary-General on recent decisions taken by participants of the Declaration of Cooperation at the 9th and 10th and 11th (Extraordinary) OPEC and Non-OPEC Ministerial meetings held on 9-10 and 12 April and 6 June 2020, respectively.
 

 

"These meetings decided to adjust overall crude oil production by 9.7 mb/d for May and June, 2020, with a further extension until the end of July agreed at the 11th meeting. Further adjustments are to take place for a total of two years under the initial agreement, until 31 December 2020 by 7.7 mb/d; and from 1 January 2021 to 30 April 2022 by 5.8 mb/d."

 

 
It further stressed that "HE Barkindo spoke about the many great things the GECF and OPEC have in common, ranging from same member countries, to the essential nature of both oil and gas for the development of humankind and organizational goals."

 

 
HE Sentyurin thanked the OPEC Secretary-General for supporting the building blocks of both organizations mutually beneficial dialogue.

 

 
He emphasized that since HE Barkindo visited the GECF Headquarters in Doha, Qatar in 2018, cooperation between the two organizations has been developing.
 

 

He recalled the signing of the MoU to "exchanging of knowledge, experience, views, information, data and practices in the areas of mutual interest," last October on the sidelines of Russia Energy week, calling it a milestone between the organizations.
 

 

HE Sentyurin added that this 1st technical dialogue represents a "new chapter in our collaboration."

 

 
GECF’s Secretary-General praised the joint work of OPEC and the GECF at various international fora, including the Joint Oil and Gas Data Initiative, the International Energy Agency and the International Energy Forum.