Connect with us

Foreign

OPEC’s Influence On The Oil Markets

Published

on

OPEC oil markets

OPEC’s Influence On The Oil Markets

Over the years, we have seen OPEC assert its dominance in the markets. In the short term, as prices recovered in the past month, it is now evident that OPEC has the tools necessary to adjust the markets. Albeit U.S shale remains the albatross on their neck, OPEC is still the leader of the oil markets. In April, when US President, Donald Trump called on Saudi and Russia to end the price war and help the markets recover, it was conceivable that Shale’s influence on the market was waning. Several companies felt the effect of the oil price crash, and Texas, the home of U.S energy had increased levels of unemployment.

OPEC has been regarded as a cartel and has acted as a cartel of late. Last week, for May, the Joint Ministerial Monitoring Committee (JMMC) pegged its compliance with production cuts at 87%. OPEC also restated the essence for all participating countries to reach 100% of their pledged cuts and make up for any previous deficits in quotas for July, August, and September.

ALSO READ:

Iraq, Kazakhstan, Angola, and Nigeria prompted into action and ensured they fulfilled their parts of the cuts. Iraq, Nigeria and Kazakhstan have already submitted compensation schedules as the deadline for other underperforming members to submit was on the 22nd of June 2020. This sort of discipline is needed to offer support to prices, which translated into the recovery of the market.

The successful managing of the oil markets during this coronavirus era can be attributed to OPEC+, albeit they were responsible for the market plummeting months ago. In history, OPEC has always found a way to influence the markets during eventful periods. For example, the 1973 oil shock, the fall of the Soviet Union in 1991, and the Asian Financial Crisis all provided opportunities for OPEC to prove their mettle.

The Oil Cartel created in the 1960s allied with Russia and other nations, which results in the term “OPEC+.” According to Investopedia, this formation means they control over 50% of global supplies and 90% of proven reserves. What makes OPEC strong is the absence of alternatives to oil, and the de-facto leader Saudi Arabia, has the world’s lowest cost of production per barrel. The latter gives Saudi Arabia leverage to survive a crash in prices and creates some invincibility, which it leverages to dictate the market.

Conclusively, we have seen prices prop up and U.S shale suffering, OPEC+ seems like the influential deciding factor in the oil markets. It might lose its foothold in the future, but for now, the cartel calls the shots.

Join us on FACEBOOK

Customs Corner

Nigeria Customs Service Reaffirms Commitment to Gender Equality in Decision-Making

Published

on

Author: Bashir Muhammad.

The Nigeria Customs Service (NCS) has reiterated its dedication to promoting gender equality in decision-making processes as part of its efforts to combat gender discrimination and gender-based violence.

At a capacity-building workshop on gender inclusivity, co-organized by the World Customs Organization (WCO) and the NCS in Abuja on Monday, April 22, 2024, the Comptroller-General of Customs, Bashir Adewale Adeniyi, reaffirmed his commitment to fostering a gender-inclusive environment within the service.

Acting Deputy Comptroller-General of Customs, Caroline Niagwan, represented the CGC at the event, where she emphasised the need for clear policies and procedures to address gender discrimination, harassment, and biases within the NCS.

“Our aim is to create a workplace where everyone has equal opportunities to grow and contribute to the service’s success, regardless of gender,” the CGC said. “We are committed to addressing gender discrimination, harassment, and biases within our ranks, and we will work tirelessly to ensure that our policies and practices reflect this commitment.”

The workshop brought together customs officials, gender experts, and stakeholders to discuss strategies for promoting gender inclusivity and addressing gender-based violence in the workplace.

With this reaffirmed commitment, the NCS demonstrates its dedication to creating a more inclusive and equitable work environment where all employees can thrive and reach their full potential.

Continue Reading

Customs Corner

European Union Proposes ‘Getaway Corridor’ Project to Combat Illicit Trafficking

Published

on

Author: Cynthia Ikebudu.

In a bid to tackle the rampant issue of illicit trafficking and smuggling across borders, the European Union (EU) unveiled a groundbreaking initiative aimed at enhancing law enforcement and trade facilitation at the Nigeria Customs Service Headquarters in Abuja on 16 April 2024.

The project, titled “Getaway Corridor,” according to EU representatives Louis Jacques Blondiau and Thierry Thimon, is set to cover ten countries, including Nigeria, with the goal of curbing illicit activities on the borders and suppressing smuggling operations.

Louis Jacques Blondiau, the leader of the group, emphasised that the Getaway Corridor project entails the development of a road infrastructure network designed to serve as a gateway for combating anti-smuggling activities while promoting trade facilitation. According to him, “each participating country will designate a specific zone for the project’s execution, which will involve four key phases: identification, implementation, evaluation, and project ownership, ensuring alignment with local needs and priorities.”

During the meeting, the Comptroller-General of Customs (CGC), Bashir Adewale Adeniyi, commended the EU’s initiative, acknowledging its potential to significantly enhance the effectiveness of law enforcement efforts in Nigeria. He pledged the full support of the Nigeria Customs Service and other relevant agencies in ensuring the successful execution of the project.

“The proposed Getaway Corridor project marks a significant step towards strengthening international cooperation in combating illicit flows and promoting trade security within the region. With the commitment of both the EU and Nigerian authorities, it is poised to make a meaningful impact in curbing illegal activities and fostering sustainable development,” the CGC stated.

Continue Reading

Customs Corner

COWA Celebrates 2024 International Women’s Day, Fosters Growth in Productivity

Published

on

Author: Iruoghene Abra.

The National President of the Customs Officers’ Wives Association (COWA) and wife of the Comptroller General of the Nigeria Customs Service, Mrs. Kikelomo Adeniyi, has continually encouraged the productiveness of its members to attain their full potential.

Marking the 2024 International Women’s Day (IWD) on Friday, March 8, 2024, at the COWA Secretariat, the National President of COWA emphasized the importance of the IWD theme, ‘Inspire Inclusion.’ She urged women to celebrate diversity.

Mrs. Kikelomo Adeniyi stressed that women must overcome obstacles and stereotypes to achieve gender equality. She said they must also foster an environment that supports women’s growth and respects and values their contributions.

While speaking, the National President noted that COWA will keep pursuing the economic inclusion and empowerment of her members. Reminiscing COWA’s relaunch on February 15, 2024, the President announced a plan to train and empower 1,200 women to enable them to contribute meaningfully to their family’s economy and society.

According to the National President of COWA, “I am happy to note that in the Nigeria Customs Service, obstacles facing female officers have been eliminated daily. Women are given the opportunity to contribute meaningfully to national development”.

She further said, “It is particularly gratifying to note that today, we have quite a number of senior female officers in the management team. Some serving as Customs Area Controllers, Zonal Coordinators, and other strategic Units of the service.
I believe that someday, in the not-too-distant future, we will all be alive to see the emergence of a female comptroller General of Customs. I strongly believe that investing in women is good for families, communities, and the national economy. It is a powerful means to inclusion”.

Mrs Adeniyi revealed the COWA Skills Acquisition Center in Karu is currently under construction, where members will receive constant training and retraining. She urged members to be at the forefront of making the desired change.

The CEO of Madame Merola Global Enterprises, Madame Merola, implored the women to know their purpose as it is crucial to modern society. She said if women must be included in the places of authority, they must come out and show their abilities.

She highlighted the vitalities of the four Ps to include Purpose, Persona, Perception and People. She encouraged women to grow, evolve and be a better version of themselves. She advised them to communicate with others, stating that there are attributes they possess that others need and until they speak to others, they might not be recognized.

Continue Reading

Trending