OPEC Holds Emergency Meeting as Oil Price Hits $105

Emmanuel Addeh in Abuja

The Organisation of Petroleum Exporting Countries (OPEC), an international group of oil producers, has begun an emergency meeting to weigh the implications of the Russia-Ukraine face-off which escalated in the last few hours.

THISDAY exclusively gathered that the meeting is being presided over by Nigerian-born OPEC Secretary General, Dr Sanusi Barkindo.

A source at the OPEC secretariat in Vienna, hinted that discussions were centering around the implications for global supply and demand for the commodity as well as how actions taken by Russia, an OPEC+ member could distort the market.

Meanwhile, oil price surged to over $105 per barrel this afternoon, close to an eighth-year high.

Brent crude rose $8.24, or 8.5 per cent, to $105.08 a barrel while West Texas Intermediate (WTI) crude jumped $7.78, or 8.5 per cent to $99.88.

Russia is the world’s third-largest oil producer and second-largest oil exporter and any impact on its production could markedly affect the market.

It is also the largest provider of natural gas to Europe, providing about 35 per cent of its supply.

Given that OPEC was already running out of capacity before the latest threat, it’s unclear what the cartel plans to do to ensure the market remains afloat.

Details later…