Breaking News: OPEC is not pleased with Nigeria right now – See Reasons Why

The Organization of Petroleum Exporting Countries (OPEC) has said that they are not happy with the Nigeria Government because they have failed to comply with the new rules laid down by OPEC.

On the 9th of April, 2020, OPEC and its allies (referred to as OPEC+) agreed to cut global crude oil output by a record 10 million barrels per day, or about 10% of global output, in May and June.

The idea was to lift prices battered by plunging demand due to coronavirus induced lockdown measures.

If every member supplied crude oil to the international market in line with their capacities, there will be a glut and a further crash in the price of the product.

However, while some OPEC members like Saudi Arabia, Kuwait and the United Arab Emirates voluntarily adhered to output cuts of 1.180 million bpd, other members like Iraq, Kazakhstan and Nigeria showed weak compliance with their output reduction targets in May

The plan was for OPEC members to cut global supply by up to 10 million barrels per day between May and June 2020, 8 million barrels per day between July and December 2020, and 6 million barrels per day from January 2021 to April 2022, respectively.

Nigeria, which produces 1.829 million barrels per day, was asked to produce 1.412 million barrels per day, 1.495 million barrels per day, and 1.579 million barrels per day respectively for the corresponding periods, according to the agreement.

Should an OPEC meeting hold in the coming days, the discussions will be about stipulating new criteria for countries like Nigeria who have not fully complied with the oil cuts; and how they can compensate for their overproduction in the coming months.

Oil prices in the international market have risen from the doldrums experienced in April, largely due to the easing of lockdown restrictions across the world and the OPEC supply cut agreement.