By Adedapo Adesanya
The price of the Brent crude moved closer to $49 per barrel on Thursday after it gained 1.02 per cent or 49 cents to sell at $48.74 per barrel.
This was buoyed by the agreement reached by members of the Organisation of the Petroleum Exporting Countries (OPEC) and their allies collectively known as the (OPEC+) on oil production for next year.
This development pushed the price of the United States’ futures, West Texas Intermediate (WTI) crude, higher by 0.86 per cent or 38 cents yesterday to $45.67 per barrel.
OPEC+ met on Thursday to work on policies for 2021 after talks earlier in the week reached no conclusion on how to tackle weak oil demand amid a new wave of coronavirus infections.
After much debate, the oil cartel reached a tentative agreement for January alone. This will see just the addition of 500,000 barrels per day in January to oil production quotas, which currently calls for a production cut of 7.7 million barrels per day. This means total production cut in January will now be 7.2 million barrels per day.
As part of the agreement, assigned quotas in the future could rise or fall and to determine those levels of oil production beyond January, OPEC+ ministers will hold additional meetings once every month.
This is seen as satisfactory to all parties because many were opposed to the extending production before the meeting which had to be delayed. Others worried about adding in any more output warning that that oil demand would not be able to sustain any added production.
In addition to the agreement for adding 500,000 barrels per day of production back in, OPEC+ members that are laggards will have to stick to their production quotas as they will have to make up the difference between now and March.
Analysts noted that with fresh OPEC announcements every month, the market will hang on every word and oil prices will respond in kind, regardless of their actual effect on oil prices.
However, they warned that the January-only agreement could have a considerable effect on oil price volatility in the months to come.
The blockchain brings new financing options to the business market. For example, Bitcoin Cash casino has adapted to only using cryptocurrency. This way, it makes it easier for their customers to deposit and withdraw in a BCH casino. Entrepreneurs have taken note of this and are looking to invest more in crypto than in fiat markets.
Like Our Facebook Page
Latest News on Business Post
- Fitbit Unveils Device to Track Users’ Fitness, Wellness April 22, 2021
- UK Expresses Willingness to Attract More Investments to Nigeria April 22, 2021
- How to Invest in Stocks in Nigeria: Guide for Beginners April 22, 2021
- Jumia Employee Taking Pleasure in Meeting e-Commerce Needs of Rural Dwellers April 22, 2021
- Over 4 million Investors’ Accounts Have Incomplete KYC Data—SEC April 22, 2021
- FBNQuest Merchant Bank Offers to Help SMEs Issue CPs, Bonds April 22, 2021
- Sparkle Nigeria Introduces SMS Alert Fees April 22, 2021
- Keystone Bank Teaches Nigerian Students Financial Literacy April 22, 2021
- Nigeria Borrows N274.5bn from Local Investors at Over 13% April 22, 2021
- Government Seals Kaduna Electric over N464.1m Tax April 22, 2021
Economy5 years ago
Kwara Disburses N1.7b For Projects
Technology4 months ago
How To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Economy3 years ago
FAAC: FG, States, LGs Share N655.18b in January
Feature/OPED1 year ago
Davos was Different this year
Feature/OPED1 month ago
COVID and the Growth of Technology in Nigeria
Economy1 month ago
MBA Forex Blames CBN for Inability to Return Investors’ Funds
General2 years ago
Ikeja Electric Explains How to Get Prepaid Metres via MAP
Banking3 years ago
Sort Codes of GTBank Branches in Nigeria