Data obtained from oilprice.com confirms that Nigeria’s flagship crude closed at $41.80 on June 19, reaching a four-month high, since early March 9, where its price fell to $37.22. This surge was triggered by oil production cut and growing oil demand for Nigeria’s black gold.
“You’re going to see more OPEC compliance,” Phil Flynn, senior oil analyst at Price Futures Group in Chicago told Reuters. “I think we’d be a lot higher if it weren’t for these coronavirus fears.”
With OPEC+ compliance, presently at about 87% for May, member countries are taking measures to reduce oil glut and boost compliance.
What you should know about Bonny light? Bonny Light crude is a high-grade level of Nigerian crude oil with specific gravity, produced in the Niger-Delta area of Nigeria and named after region city where it’s found.
Bonny light is low sulfur content and much lighter than other crude oil grades making it very attractive to oil buyers because they are termed to have the highest quality
Crude oil has doubled in value since a 21-year low in April, boosted by record OPEC+ supply cuts of 9.7 million barrels per day, about 10% of world demand for oil.
Crude oil continued to rally as an unusual catalyst from OPEC and its major allies complied with the production cut agreement, though some oil traders and experts warned that the bullish momentum might run out of steam.
“There is enthusiasm in the market that oil supply is still under control,” said Paola Rodriguez Masiu, analyst at Rystad Energy. “A positive OPEC+ meeting does that and Thursday’s session helped renew confidence.”