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Crude Oil Rises To $42.81 Per Barrel As OPEC Agrees To Extend Oil Production Cuts

The Crude oil prices recorded the highest growth since the inception of COVID-19 pandemic at over $42 per barrel as the world’s major oil producers (OPEC) agreed to extend the record oil production cuts.

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The Crude oil prices recorded the highest growth since the inception of COVID-19 pandemic at over $42 per barrel as the world’s major oil producers (OPEC) agreed to extend the record oil production cuts.

Naija News Understands that the unprecedented surge in the crude oil prices keeps improving since the Organisation of the Petroleum Exporting Countries (OPEC), Russia and allies, collectively known as OPEC+, agreed in April to cut supply by 9.7 million barrels per day (BPD).

However, on Saturday, OPEC+ agreed to extend the deal to withdraw almost 10 per cent of global supplies from the market by a third month to end-July.

Meanwhile, the unprecedented surge is good news to the Federal government of Nigeria with its resultant positive impact on the country’s economy as the Brent crude was up 51 cents, or 1.2 per cent, at $42.81 per barrel, by 0628 GMT, while U.S. West Texas Intermediate (WTI) crude rose 32 cents, or 0.8 per cent, to $39.87 a barrel.

Nevertheless, there are high tendencies that the revenue accruable to the Federal Government from the sale of crude oil is estimated to drop by a cumulative sum of about N140bn in May and June this year following oil production cuts by the Organisation of Petroleum Exporting Countries and its allies.
The Minister of State for Petroleum Resources, Timipre Sylvia, who confirmed the reduction that was done in May, further stated that the country would continue to comply with the agreement of OPEC+.



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