OPEC Plus Attains 87 Percent Compliance Level in the Month of May

The Organisation of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC Plus, attained 87 percent compliance level in the month of April, a Reuters report stated.

The report, which quoted a familiar source with OPEC plus data, said the level stated was same as the Russia’s TASS news agency report.

This is coming barely a week after OPEC plus agreed to extend 9.7 million barrels per day production cuts to July in order to further stabilise global oil market and support low oil prices.

The cartel had warned that members who failed to abide by the agreed quota will be forced to cut in the subsequent months following reports that Nigeria and Iraq are struggling to cut production given their economic needs in the face of COVID-19 pandemic.

Meanwhile, oil prices rebounded with other assets on Tuesday after the US Federal Reserve announced additional stimulus to further pump money into the economy.

The central bank had announced it would extend debt buying to corporate organisations in a move seen by many experts as ‘do whatever it takes.’

Charalambos Pissouros, a senior market analyst at JFD Bank, said the announcement would make investors eager for additional economic support from the apex bank and further restore confidence in the stock market.

“However, following yesterday’s announcement over corporate bonds, investors may be eager to find out whether the Fed remains willing to do more in order to support economic activity hit by the pandemic,” Pissouros said in a note Tuesday.

“If so, equities and risk-linked currencies are likely to continue their journey north, as investors keep diverting their capital out of safe havens, the likes of the U.S. dollar, the yen and the (Swiss) franc.”

The Brent crude oil, against which Nigerian oil, is measured rose above $40 a barrel on Tuesday during the Asian trading session.