Oil prices for both Brent and West Texas Intermediate (WTI) crude reached new highs on Thursday, with Brent holding above $87 a barrel, its highest level since April.

Brent crude oil, against which Nigerian oil is priced, rose by 21 cents, or 0.2% to $87.55 a barrel, while U.S. WTI crude oil increased by 18 cents to $84.06 a barrel.

According to the U.S. Energy Information Administration (EIA), crude oil inventories declined by 12.2 million barrels, more than the 680,000 barrels decline predicted by analysts polled by Reuters.

The significant reduction in U.S. crude stocks has bolstered market confidence in continued robust demand.

“Trade is quiet and people are watching the physical market and geopolitical situation,” said Martin King, an analyst at RBN Energy, noting that traders are also keeping an eye on the ongoing conflict in Gaza and the upcoming elections in France and the United Kingdom.

Initially, oil prices had dipped by as much as 83 cents, but the downturn was short-lived.

The weaker U.S. dollar and the optimistic outlook for U.S. fuel demand, spurred by the EIA data, supported the market, according to PVM analyst Tamas Varga.

However, concerns about global demand persist. German industrial orders fell unexpectedly in May, adding to worries about Europe’s largest economy’s recovery.

In the U.S., first-time applications for unemployment benefits increased last week, with overall jobless numbers also rising.

While these factors raise demand concerns, some analysts believe that weaker economic data could prompt the U.S. Federal Reserve to cut interest rates, which might be beneficial for oil markets.

In related news, Russia’s major oil producers, Rosneft and Lukoil, are set to significantly reduce oil exports from the Black Sea port of Novorossiisk in July, as reported by Reuters.

Meanwhile, Saudi Aramco has lowered the price for its flagship Arab Light crude for August sales to Asia by $1.80 a barrel above the Oman/Dubai average.

This price cut highlights the pressure OPEC producers face from growing non-OPEC supply and global economic headwinds.

Despite these challenges, Swiss bank UBS remains optimistic, forecasting that Brent crude will reach $90 a barrel this quarter, driven by OPEC+ production cuts and anticipated declines in oil inventories.

As the global oil market navigates these complexities, the recent spike in Brent and WTI prices underscores the volatile interplay of supply, demand, and geopolitical factors influencing the industry.

OPEC+ is calling on member nations to rectify their quota violations.

This push comes as crude prices soar to near $87 a barrel in London, presenting a crucial juncture for the coalition.

Iraq and Kazakhstan, significant players within the OPEC+ alliance, have pledged to implement additional production cuts to compensate for their previous overproduction.

However, recent production estimates indicate these commitments have yet to be honored.

Internal documents from OPEC+ committees, obtained by Bloomberg, reveal a history of poor compliance with compensation cuts, further complicating current efforts.

The mechanism for compensating overproduction, introduced in mid-2020, was designed to ensure member nations adhered to their assigned quotas.

Yet, this system has rarely been fully implemented. In 2021, for example, Iraq’s backlog of overdue cuts remained largely unchanged, and Gabon’s excess production debt grew significantly.

Saudi Energy Minister Prince Abdulaziz bin Salman emphasized the importance of these compensation cuts, stating, “We need it, and we need it badly,” following the latest OPEC+ meeting on June 2.

The Saudi minister’s remarks highlight the critical role these measures play in the coalition’s strategy to maintain market stability.

Despite the pledges, both Iraq and Kazakhstan have continued to exceed their production limits. In May, Iraq produced 195,000 barrels per day above its target, while Kazakhstan’s output was 43,000 barrels per day over its quota.

These figures underscore the ongoing challenge of enforcing compliance within the group.

Historically, there have been instances where countries like the United Arab Emirates have swiftly addressed their overproduction following public reprimands from leading members like Saudi Arabia.

However, these examples are exceptions rather than the norm. Analysts like Tamas Varga from PVM Oil Associates Ltd. express skepticism, noting that “hard evidence would be needed for the market to be convinced that amends have actually been made.”

The struggle to enforce compliance has significant implications for the oil market. While excess production may offer temporary relief for consumers, it threatens vital revenue streams for OPEC+ nations.

This delicate balance underscores the importance of strict adherence to agreed-upon production limits.

Russia, another key member of OPEC+, has also pledged compensation but has yet to submit a detailed schedule of its planned cuts.

Although Russia curtailed output in May, it still exceeded its quota by 133,000 barrels per day, according to OPEC data.

OPEC+ continues to grapple with enforcing discipline among its members. The coalition’s latest plans, extending the compensation period to the third quarter of 2025, aim to distribute the required cuts over a longer timeframe, potentially making compliance more manageable.

However, the lack of immediate action remains a concern.

As OPEC+ moves forward, the group’s ability to enforce production quotas will be crucial in maintaining market stability and supporting oil prices.

The ongoing efforts to address these challenges reflect the high stakes involved in managing global oil supply and demand.

Namibia, known for its stunning landscapes like the Skeleton Coast and the Namib Desert, is fast becoming more than just a tourist hotspot.

With recent monumental oil discoveries by TotalEnergies SE and Shell Plc totaling an estimated 11 billion barrels, the country is now on track to transform into a high-end business travel hub.

The allure of Namibia’s burgeoning oil industry has sparked a rush of corporate travelers and oil executives, reshaping the travel landscape in the region.

According to Rodger Foster, CEO of SA Airlink Pty Ltd, the country’s newfound status as an oil producer has catalyzed a significant increase in high-end business travel.

“Namibia has historically been a leisure destination, but the discovery and commercialization of oil and gas, along with its green hydrogen potential, have positioned it as a magnet for business travelers,” Foster remarked in a recent interview with Bloomberg TV.

SA Airlink, responding to the growing demand, has expanded its flight services to Namibia, increasing routes to cities like Walvis Bay and the capital, Windhoek.

The airline now operates 63 return trips weekly to accommodate the influx of business travelers and industry professionals.

“This shift towards business travel, particularly in sectors like oil and gas, mirrors similar developments seen in neighboring countries such as Mozambique,” Foster added, highlighting the broader economic impact of Namibia’s oil boom on regional travel patterns.

Namibia’s strategic location and stable political environment further enhance its appeal as a business destination.

The government’s proactive measures to attract foreign investment in green hydrogen production also contribute to its emerging role in global business travel.

“We are witnessing a transformative moment for Namibia,” said Minister of Mines and Energy, Emma Theofelus, during a recent conference. “The development of our oil resources is not just about economic growth but also positioning Namibia as a hub for sustainable energy solutions.”

As Namibia navigates this new chapter, stakeholders are optimistic about the country’s potential to diversify its economy and attract further investment in sectors beyond oil and gas.

The growth in business travel underscores Namibia’s evolving role in the global economic landscape, with opportunities emerging in hospitality, infrastructure development, and sustainable energy initiatives.

With the momentum of its oil discoveries propelling it forward, Namibia looks set to carve out a niche as a premier destination for high-end business travelers seeking both economic opportunities and the country’s renowned natural beauty.