In a significant turn of events in the global oil market, OPEC+ is reportedly nearing a resolution with its African members over the oil output levels for 2024. This update follows earlier disagreements which led to the delay of a vital organizational meeting, as informed by sources within OPEC+ to Reuters.
The focus is particularly on OPEC members Angola and Nigeria, which have been advocating for an increase in their oil output allowances. The deferment of the OPEC+ meeting, initially scheduled for November 26, had a noticeable impact on the oil market, causing a dip in prices. However, the market has shown resilience, with Brent crude prices bouncing back to trade above $81 a barrel recently.
In a strategic move, OPEC announced that the rescheduled meeting would occur virtually. Sources close to the matter, preferring to remain anonymous, have expressed a strong belief in the likelihood of reaching an agreement by November 30. It's reported that a consensus is forming, especially regarding the production levels for African producers.
This development is particularly noteworthy for Nigeria and Angola, which, along with several other countries, received lower production targets in the last OPEC+ meeting due to their historical performance in meeting quotas. Current data suggests that Angola is producing below its 2024 quota, while Nigeria's output is near its current quota but below a higher level under consideration.
Market analysts anticipate that OPEC+ might continue or even intensify its oil supply cuts into the following year to sustain price levels. Additionally, there is a keen interest in whether certain members will maintain their additional voluntary production cuts, which are due to expire at the year's end.
This potential agreement within OPEC+ marks a crucial step in international trade, especially for the oil market. It reflects a concerted effort to balance the economic interests of oil-producing countries with the overall stability of the global oil market. The outcomes of the November 30 meeting are highly anticipated and are expected to have significant implications for international trade and economic policies.