OPEC+ Moving Closer to Compromise with African Producers
OPEC+ Nears Compromise on 2024 Output Levels
Oil-producing nations in the OPEC+ group have made significant progress towards reaching a compromise with African oil producers on 2024 output levels, according to four OPEC+ sources. Disagreements over output targets had previously led to the postponement of a crucial meeting.
Angola and Nigeria Seeking Higher Output Allowance
Officials revealed that OPEC members Angola and Nigeria were lobbying for a higher oil output allowance, adding to the tension surrounding the meeting. This disagreement prompted the postponement of the Organization of the Petroleum Exporting Countries and allies’ meeting, causing a temporary drop in oil prices.
Optimism and Recovery in Oil Prices
Despite the initial setback, oil prices have since rebounded, with prices trading above $81 a barrel on Friday. OPEC announced that the meeting would now be held virtually, and sources within the group expressed optimism about reaching an agreement on November 30th.
Positive Developments and Near Agreement
Confidence is high within OPEC+, with sources indicating that an “understanding has been reached” on the African producers’ issue. Furthermore, Nigeria’s governor to OPEC expressed unawareness of any disagreements regarding his country’s production targets, signaling a potential resolution to the ongoing dispute.
Expectations for OPEC+ Actions
Analysts anticipate that OPEC+ may extend or deepen oil supply cuts into the coming year to bolster prices. Additionally, the market is eagerly awaiting Saudi Arabia’s decision on whether to extend its additional 1 million bpd voluntary production cut, set to expire at the end of December.
