The Organization of Petroleum Exporting Countries, also known as OPEC+, members and non-members, agreed on Sunday to reduce crude oil production levels to ensure the stability of the world’s oil markets, but they left Nigeria, Congo, and Angola free to continue producing as much as possible to meet their OPEC quota of 2023.
However, Saudi Arabia, a significant oil producer and OPEC member, voluntarily reduced its production by an additional 1 million barrels per day as part of an agreement reached by OPEC+ after hours of tense negotiations, according to Bloomberg.
Abdulaziz bin Salman, the Saudi Arabian minister of energy, surprised everyone once more by announcing the reduction in a statement. The most significant aspect of the agreement, which also calls for extending voluntary cuts through 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 concurred that the highest production levels over the previous six months—November 2022 to April 2023—should serve as the foundation for calculating their respective production quotas for 2024.
According to Persecondnews, the head of the Nigerian delegation at the meeting reportedly stated in a statement that OPEC had also agreed to permit these nations to keep producing as much as possible to meet their OPEC quota by 2023.
In February 2023, Nigeria reached its highest crude oil production level of 1.38 million barrels per day. However, the most recent information indicates that Nigeria can increase its production up to its OPEC quota of 1.74 million barrels per day and then be limited to a quota of 10% less for 2024, subject to verification by independent secondary sources.
According to the statement, the Nigerian delegation was confident that the ongoing security operation, which is being led by President Bola Tinubu, would allow the country’s production to be restored to 1.58 million barrels per day, with condensate production adding an additional 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 meeting, 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 per barrel on the day.