OPEC raises Nigeria’s oil output amid Saudi Arabia’s production cut

0
75

Members and non-members of the Organisation of Petroleum Exporting Countries, known as OPEC+, on Sunday, agreed to cut crude oil production volumes in order to ensure global oil market stability, but allowed Nigeria, Congo and Angola to continue to produce maximally to their OPEC quota of 2023.

 

In the meantime, Saudi Arabia, a major oil producer and key member of OPEC,voluntarily made an additional cut of one million barrels of oil per day as part of a deal struck by OPEC+ after hours of tense haggling, Bloomberg reported.

 

Saudi Energy Minister, Abdulaziz bin Salman, unveiled the reduction in a statement, once again managing to pull off a surprise. The Saudi move is the most meaningful part of the deal, which also includes an agreement to extend voluntary cuts through 2024.

 

Nigeria and other OPEC and non-OPEC members met at the 35th Joint Ministerial Monitoring Committee Meeting of OPEC held in Vienna, Austria, on Sunday.

 

Also, Nigeria, Congo and Angola have agreed that the highest production volumes of the last six months from November 2022 to April 2023 should be used as the basis for the determination of their 2024 production quota.

 

The Nigerian head of delegation to the meeting reportedly said in a statement that OPEC had also agreed to allow these countries to continue to produce maximally to their OPEC quota of 2023, according to Persecondnews

 

Nigeria’s highest crude oil production of 1.38 million barrels per day was achieved in February 2023. But by the latest development, Nigeria can ramp up its production up to its current OPEC quota of 1.74 million barrels per day and subsequently be capped at 10 per cent less as its quota for 2024, subject to verification by independent secondary sources.

 

 

The statement said the Nigerian delegation was confident that the ongoing security intervention under the leadership of President Bola Tinubu would enable the restoration of country’s production to 1.58 million barrels per day and would be complimented by condensate of about 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.

 

Crude Oil prices were already trading up ahead of the meeting, but increased on Friday afternoon, bringing Brent crude to $76.32 at 4:20pm, a $2.06 per barrel increase on the day.

Previous articleHow meeting my wife as 21-year-old virgin affected me – Israel DMW
Next articleMobile subscriptions drop by three million – NCC
Francis Ogwo
The young and goal driven writer and cinematographer started his journalism as a print journalist in Kaduna in 2005 writing for Kaduna Chronicles Newspapers, Liberator Newspapers where he became the South Bureau Chief. In 2008, he moved into TV production with an employment into Siverbird Television and Rhythm Fm as a Correspondent. He got certified by Independent Television Producers Association of Nigeria(ITPAN) in 2009. After five years of hardwork and training, he was employed as Associate Producer, Moments With Mo and subsequently Producer, Playground on HipTV. Francis currently majors in documentaries and high profile scripts for news and movies. He is currently a Senior Contents Producer at News Central TV

LEAVE A REPLY

Please enter your comment!
Please enter your name here