OPEC+ Close to Compromise with African Oil Producers on 2024 Output Levels
In a recent development, OPEC+ has reportedly moved closer to reaching a compromise with African oil producers regarding output levels for 2024. According to four sources within OPEC+, the disagreement over output targets prompted the group to postpone a crucial meeting from November 26 to November 30.
The two African OPEC members, namely Angola and Nigeria, were seeking a higher oil output allowance. However, it seems that progress has been made in resolving this dispute, as an “understanding has been reached” over the issue, as stated by one of the sources.
The initial postponement of the meeting caused a temporary dip in oil prices. However, the market has since witnessed a rapid recovery, with Brent crude currently trading above $81 per barrel. This recovery can be attributed to the optimism surrounding an impending agreement within OPEC+.
While Nigeria’s governor to OPEC, Gabriel Tanimu Aduda, expressed unawareness of any disagreements with other OPEC+ members regarding Nigeria’s production targets, Angola is currently producing less than its 2024 quota. On the other hand, Nigeria is close to its 2024 quota but falls short of the 2024 level being considered for the country.
Analysts are anticipating that OPEC+ will make the decision to extend or deepen oil supply cuts into the following year to provide support to prices. Furthermore, the market eagerly awaits confirmation of whether Saudi Arabia will extend its additional 1 million barrels per day voluntary production cut, which is set to expire at the end of December.
It is expected that OPEC+ will reach a resolution on November 30 regarding output levels for 2024. The compromise with African oil producers will play a vital role in striking a balance between different members’ demands and ensuring stability within the global oil market.
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