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Few hours after the Joint OPEC-Non-OPEC Ministerial Monitoring Committee, JMMC, met in St. Petersburg, Russia, for its fourth meeting on July 24, 2017, to review last month’s report as well as the first six months of the Declaration of Cooperation as submitted by the Joint OPEC-Non-OPEC Technical Committee, JTC, crude oil price has risen from $48 to $50 per barrel.
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The leap in price was also fuelled by the vandalism of the Trans Niger Pipeline, which affected the export of about 225,000 barrels per day, bpd in Nigeria. Investigations showed that speculation was rife that the two developments were capable of withdrawing excess oil from the volatile market. Specifically, the price of Brent, usually used to benchmark other oil prices rose from $48 to $50 per barrel, yesterday.
The prices of WTI rose from $47 to $48 per barrel, while that of OPEC basket dropped from $46.99 to $46.01 a barrel. OPEC stated in a statement that “the price of OPEC basket of14 crudes stood at $46.01 a barrel on Monday, compared with $46.99 the previous Friday, according to OPEC Secretariat calculations.
However, the latest price showed $6 per barrel in excess of Nigeria’s $44 per barrel 2017 budget reference price. According to OPEC, the meeting was graciously hosted by the Russian Federation, and the Committee expressed its deep appreciation to HE Alexander Novak, Minister of Energy, for the warm hospitality and excellent arrangements extended to all delegations.
It stated that the Committee reviewed the JTC report and noted that the oil market is making steady and significant progress towards re balancing.