Brent hits session-peak of $71 as OPEC+ meets

The OPEC and its allies met in Vienna, Austria, to discuss the current plan and agree on an increase in crude oil output from July. Kola Karim, the Chairman of the Shoreline Group, shared his insights on the meeting's outcome. The global economy is showing signs of recovery from the pandemic, with a return in consumption and market prices soaring. Analysts predict that OPEC will increase output by 2.1 million barrels to bridge the gap between May and July, reflecting a positive outlook for oil-dependent countries like Nigeria. Despite concerns over new COVID variants, such as the hybrid variant found in Vietnam, and the situation in India, which has led to increased worries globally, the belief in demand growth remains strong. The economic reopening in developed markets, the upcoming European summer travel season, and the necessity of keeping economies running, especially in populous countries like India, indicate a continued rise in demand. Countries have largely adhered to their output quotas, with Saudi Arabia stepping up production to cover shortfalls by others. However, the looming challenge lies in the decarbonization efforts pushed by environmental activists, which could substantially reduce oil consumption by 2030-2050. This poses a significant threat to oil-dependent nations like Nigeria, urging them to prepare for a transition to alternative energy sources. Nigeria, heavily reliant on oil for foreign exchange earnings, faces a critical juncture with the pending passage of the Petroleum Industry Bill (PIB) and the need for expedited action in alignment with global energy transitions. The country must attract investments and develop a robust energy strategy to ensure competitiveness in the evolving energy landscape. Karim emphasized the urgency for Nigeria to accelerate its efforts, citing the limited window of opportunity before capital shifts to more sustainable energy markets. With the global financial sector increasingly demanding transition plans from oil and gas companies, Nigeria's ability to secure investments and navigate the energy transition will be pivotal for its economic future.