In order to maintain the stability of the world oil market, members and non-members of OPEC, also known as OPEC+, have agreed to reduce crude oil production volumes over the weekend, but Nigeria, Congo, and Angola were allowed to continue producing as much as possible to meet their OPEC quota of 2023.
After hours of heated negotiation, OPEC+ reached an agreement, according to Bloomberg, although Saudi Arabia, a significant oil producer and important OPEC member, made an additional voluntary cut of one million barrels of oil per day.
Abdulaziz bin Salman, the Saudi Arabian minister of energy, surprised everyone by announcing the cut in a statement.
The most significant aspect of the pact, which also calls for extending voluntary reduction until 2024, is the Saudi move.
At the 35th Joint Ministerial Monitoring Committee Meeting of OPEC, held on Sunday in Vienna, Austria, Nigeria and other OPEC and non-OPEC members gathered.
Additionally, Nigeria, Congo, and Angola have agreed that their respective production quotas for 2024 will be based on the greatest production levels for the previous six months, from November 2022 to April 2023.
The chairman of the Nigerian delegation at the conference allegedly stated in a statement that OPEC has also decided to enable these nations to continue producing as much as possible to reach their OPEC quota by 2023, according to Persecondnews.
At 1.38 million barrels per day in February 2023, Nigeria's crude oil output reached its greatest level.
But according to the most recent development, Nigeria can increase its output to reach its OPEC quota of 1.74 million barrels per day and then be limited at 10% less as its quota for 2024, subject to verification by independent secondary sources.
The statement disclosed that the Nigerian delegation was convinced that the current security operation, which is being led by President Bola Tinubu, will allow the country's output to be restored to 1.58 million barrels per day, with the addition of condensate at a rate of roughly 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 added.
Prior to the conference, crude oil prices were already rising, but on Friday afternoon they rose further, pushing Brent crude to $76.32 at 4:20pm, an increase of $2.06 a barrel for the day.
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