There was tension in oil producing and exporting nations, including Nigeria, yesterday as the price of crude oil slipped further to $71.68 per barrel, about 0.45 or 0.62 per cent down from $72.13 recorded the previous day in the international market. This development puts the price trend on the fifth consecutive week of decline.
Oil price had peaked at $85 per barrel in October, 2018.
The recent decline has been attributed to rising output and the waiver on United States sanction on Iran.
Yesterday price of Brent and West Texas Intermediate, WTI stood at $71.68 and $61.49 respectively, while the price of the Organisation of Petroleum Exporting Countries, OPEC basket of 15 crudes stood at $70.88 per barrel.
While market observers speculate that price would continue to drop, mainly as a result of speculation, OPEC stated that the volatile market was set for stability.
In its latest report sent to Vanguard, OPEC stated: "The Joint Ministerial Monitoring Committee (JMMC) reviewed the monthly report prepared by its Joint Technical Committee (JTC), including the overall conformity levels of the countries participating in the 'Declaration of Cooperation', during the month of September 2018, as well as the short-term prospects of the global oil market.
"The JMMC noted that countries participating in the 'Declaration of Cooperation' achieved a conformity level of 111% in September 2018, which shows significant progress towards the goal set at the 4th OPEC and non-OPEC Ministerial Meeting of 23 June 2018.
"The Committee expressed overall satisfaction with the collective performance of Member Countries in the month of September.
The Committee also reviewed recent market fundamentals, which showed a very comfortable supply level relative to demand. The committee however expressed concerns about rising inventories in recent weeks and also noted looming macro economic uncertainties which may require changing course".