Nigeria and other members of the Organisation of Petroleum Exporting Countries have expressed the belief that the global oil market will recover in the second half of this year.
OPEC stated on Wednesday that world oil demand was anticipated to decline by 6.4 million barrels per day in the second half, compared with a decline of 11.9 million BPD in the first half, with a gradual recovery projected until the end of 2020.
“Following an unprecedented and highly turbulent 1H20 due to the enormous impact of COVID-19 on the global economy and oil market fundamentals, the dust is starting to settle,” the group said in its June monthly oil market report.
It said available first quarter of 2020 and Q12020 economic data showed that the major declines in output were mostly due to the severe lockdown measures across the globe.
This is as the Organisation of Petroleum Exporting Countries and its allies, headed by Russia, earlier agreed to extend their record output cuts by one month.
OPEC and its allies, a group called OPEC+, decided in April to cut output by a record 9.7 million barrels per day to lift prices hit by a demand drop linked to lockdown measures aimed at stopping the spread of the coronavirus.
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The organisation agreed to extend the deal during the 11th OPEC and non-OPEC Ministerial Meeting held via videoconference, under the Chairmanship of Prince Abdul Aziz Bin Salman, Saudi Arabia’s Minister of Energy, and co-Chair Alexander Novak, Minister of Energy of the Russian Federation.
OPEC, in a statement at the end of the meeting, stated that all participating countries reconfirmed the existing arrangements under the April agreement.
Nigeria which produced more than its quota in May and June disclosed that it is prepared to make additional oil output cuts from July to September to compensate.