TheCable

The Organisation of Petroleum Exporting Countries (OPEC) and its allies, called OPEC+, have decided to extend the current voluntary cuts until the end of 2024.

The oil cartel made the decision at the 35th OPEC and non-OPEC ministerial meeting, held on Sunday.

The alliance had agreed to slash oil output by 2 million barrels per day (bpd) in October.

Additionally, some OPEC+ members announced voluntary cuts amounting to 1.66 million bpd in April.

Cumulatively, OPEC+ has implemented cutbacks totaling 3.66 million bpd, initially valid through the end of 2023.

At the meeting on Sunday, the alliance extended the cuts until the end of 2024, according to a Reuters report.

Saudi Arabia, an OPEC member, and the world’s biggest oil producer, also made an additional voluntary cut of one million bdp from July.

OPEC REDUCES COMBINED OIL PRODUCTION FROM JANUARY 2024

Meanwhile, the oil cartel also reduced the combined oil production to 40.463 million bdp from January to December 2024, including 24.994 million bpd for OPEC member countries, and 15.469 million bpd for non-OPEC member countries.

This is a 3.39 million bpd reduction from the 43,856 million bpd in the current production target of November 2022 to December 2023.

“Adjust the level of overall crude oil production for OPEC and non-OPEC participating countries in the DoC to 40.46 mb/d, starting 1 January 2024 until 31 December 2024, which is to be distributed as per the attached table,” the oil cartel said.

The oil cartel also reaffirmed and extended the mandate of the joint ministerial monitoring committee (JMMC) and its membership, “to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC and this statement, assisted by the joint technical committee (JTC) and the OPEC secretariat”.

The oil cartel said the JMMC is to be held every two months.

OPEC+ also reiterated the “critical importance of adhering to full conformity, and subscribing to the concept of compensation by those countries who produce above the required production level as per the attached table, in addition to their already decided production levels”.

The organisation fixed its next meeting on November 26, 2023, in Vienna.

OPEC ADJUSTS NIGERIA’S PRODUCTION LEVEL

Also, as part of the resolutions at the meeting, Nigeria’s production level was reduced to 1.38 million bpd, from the current 1.74 million bpd.

The adjustment takes effect from January 2024.

“The required production level for Congo and Nigeria may be updated to equal the average production that can be achieved in 2024, as assessed by the three independent sources (IHS, Wood Mackenzie, and Rystad Energy) specialised in oil upstream by the next ONOMM to be held by the end of 2023,” OPEC said.

“Noting that Nigeria’s stated production plan in 2024 is 1,578 kbd subject to verification, and if verified then the number will be reflected as required production for 2024.”

The group added that Sudan will produce 64,000 bpd, which will be the least amount produced, while Saudi Arabia will produce an average of 10.48 million bpd starting in January 2024.