Ahead of the June 2015 meeting of energy ministers of member countries of the Organisation of Petroleum Exporting Countries (OPEC) in Vienna, Austria, there are indications that the oil cartel may have given up hope of any near upsurge and significant rebound in the global prices of crude oil.
Also, Nigeria’s oil output recorded a marginal decline for the month of April.
According to a draft paper leaked to the Wall Street Journal, OPEC had in its most optimistic scenario, projected that oil price will not exceed $76 a barrel until after 2025.
In the same vein, reports in the Economist also quoted the International Energy Agency (IEA) which represents the main oil-consuming countries of the world to have said that a global oil glut was gradually building as Saudi Arabia frantically pumped more oil in a continuing battle for market share with American shale-oil producers.
It noted that the decline of non-OPEC supply in April decreased global oil output, which was partially offset by an increase in OPEC production, adding that the share of OPEC crude oil in total global production increased slightly to 32.8 per cent in April compared with the previous month at 32.6 per cent.
The report however showed that Nigeria pumped just about 1.886mb/d of OPEC’s 30.84mb/d April crude oil production, thus bringing down her production further from 1.940mb/d and 1.896mb/d it recorded in February and March.
OPEC in November 2014 refused to cut production and conceded market share to other producers, with the hope that this would force rival producers, especially in the American shale beds, to slash investment. They had projected that as supply tightened drastically, the oil price would rebound.