Members and non-members of the Organization of Petroleum Exporting Countries (OPEC), agreed on Sunday to reduce crude oil production volumes in order to ensure global oil market stability. Nigeria, Congo, and Angola were allowed to continue producing maximally to their OPEC quota of 2023.
Saudi Arabia, a significant oil producer and key member of OPEC, made an additional voluntary cut of one million barrels of oil per day as part of an OPEC agreement reached after hours of tough bargaining.
Abdulaziz bin Salman, Saudi Energy Minister, announced the cut in a statement, pulling off another surprise. The Saudi move is the most significant aspect of the pact, which also includes a commitment to Increase voluntary cuts till 2024.
Nigeria and other OPEC and non-OPEC countries met on Sunday at the 35th OPEC Joint Ministerial Monitoring Committee Meeting in Vienna, Austria. Furthermore, Nigeria, Congo, and Angola have agreed that the greatest production volumes from November 2022 to April 2023 shall be utilized to determine their 2024 production quota.
In February 2023, Nigeria recorded its greatest crude oil output of 1.38 million barrels per day. However, according to the most recent developments, Nigeria can will increase output to meet its existing OPEC quota of 1.74 million barrels per day before being capped at 10% less in 2024, subject to verification by independent secondary sources.
The Nigerian delegation to the meeting was convinced that the country’s output will be restored to 1.58 million barrels per day, supplemented by condensate of around 400,000 barrels per day.
“This will ultimately enable Nigeria’s crude oil and condensate production of about two million barrels per day in 2024,” the statement continued.
Crude oil prices were already rising ahead of the conference, but they rose further on Friday afternoon, sending Brent crude to $76.32 at 4:20pm, up $2.06 a barrel on the day.