Crude Oil Hits $68 Per Barrel, Highest in 15 Months

…..As OPEC+ Maintains Production Cuts

Brent Crude which is the international benchmark has continued to rise reaching $68.2 per barrel.

This follows the decision of the Organisation of Petroleum Exporting Countries, and its oil-producing allies to maintain the production cuts of 7.05 million barrels per day all through the month of April 2021.

The price which had continually dropped from $70 per barrel since January 2020, reached $68.25 as at Friday morning.

OPEC+, consisting of members of OPEC and their allies in non-OPEC, in past months had voluntarily reduced the level of daily oil production to promote market stability and boost crude oil prices.

The reduction was put in place by the cartel to shore-up crude oil prices following the plunge in crude oil demand due to the Covid-19 pandemic induced lockdown in 2020.

With this decision, which was reached on Thursday, Nigeria, with its 1.829 million barrels per day capacity is expected to cut down about 313,000 barrels.

This would bring down Nigeria’s daily output figure further to 1.516 million barrels per day.

Similarly, Saudi Arabia is also expected to extend its one million barrels per day voluntary production cut into April.

The group approved the continuation of current production levels for April, except that Russia and Kazakhstan would be allowed to increase production by 130,000 and 20,000 barrels per day, respectively.

The OPEC Secretary General, Mohammed Barkindo, had said there was need for countries to remain cautious as several ministers pushed for the loosening of production quotas.