Crude Oil prices rebound as OPEC+ focuses on full commitment to conformity

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CEM Report, Lagos
Oil prices rebound strongly over the week rising consistently since Friday June 12 terminating the downward trend experienced over the previous week.

Prices are fully back to the ‘above $40’ mark almost across board strengthened by the commitment of OPEC+ to comply fully with new agreement to extend production cut.

The Joint Ministerial Monitoring Committee (JMMC) rose from its 19th meeting via videoconference, on Thursday, 18 where it reviewed the monthly report and recent developments in the global oil market, as well as immediate prospects for the remainder of 2020 and into 2021.

Having noted the overall 87% compliance for the month of May, the Committee emphasized commitment to adhere to full conformity and even compensating the overproduced volumes by all participating countries.

The Committee stressed that the attainment of 100% conformity from all Participating Countries is not only fair and equitable, but vital for the ongoing and timely rebalancing efforts and helping deliver a sustainable oil market stability.

OPEC have in line, called for compensation plans from other defaulting countries to be submitted before Monday June 22 as Iraq and Kazakhstan, which have already submitted their compensation schedules.

[ALSO READ] OPEC crude oil production fell by 6.30 mbd in May

Brent crude (August Contract) currently trade at $42.85pb upon gaining $1.18 within 24hrs to rise from $41.47pb it sold Thursday.

West Texas Intermediate has equally stepped up to the $40 mark and now trading at 40.39 by July Contract, climbing from $39.05pb is previously traded a day earlier.

By Thursday update, Bonny light climbed by 2.55% now trade at $40.68pb from $39.67pb Wednesday price.

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