In order to achieve market stability, the Organisation of Petroleum Exporting Countries and its allies, commonly known as OPEC, have reduced Nigeria’s oil output, excluding condensate, by 20.7% to 1.38 million barrels per day (mb/d), from 1.74 mb/d.
The decision was made at the crucial gathering of the 35th OPEC and non-OPEC Ministerial Meeting and the 49th Joint Ministerial Monitoring Committee (JMMC) in Vienna, Austria, on Sunday. The decision is anticipated to go into effect in January 2024.
Saudi Arabia will reportedly produce 10.48 mb/d, the highest ever recorded by a single country, under the organization’s new voluntary adjustment programme, while Sudan will produce 64,000 bpd, the least amount.
The programme also revealed that OPEC members still produce the majority of the world’s oil, with a combined output of almost 25 mb/d, compared to non-OPEC nations, who produce 15.5 mb/d.
Despite numerous issues and problems in the global market, OPEC stated in a statement that it is still committed to achieving stability.
It stated: “In light of the continued commitment of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market and to provide long-term guidance for the market, and in line with the successful approach of being precautious, proactive, and pre-emptive, which has been consistently adopted by OPEC and non-OPEC Participating Countries in the Declaration of Cooperation, the Participating Countries decided to reaffirm the Framework of the Declaration of Cooperation, signed on December 10, 2016, and further endorsed in subsequent meetings; as well as the Charter of Cooperation, signed on July 2, 2019.”
Additionally, it was agreed to “adjust the level of overall crude oil production for OPEC and non-OPEC participating countries in the DoC to 40.46 mb/d, starting January 1, 2024, until December 31, 2024, which shall be distributed as per the attached table.
“Reaffirm and extend 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 JMMC is to be held every two months.
“Hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every six months in accordance with the ordinary OPEC scheduled conference.
“Grant the JMMC the authority to hold additional meetings or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, whenever deemed necessary.“
“Reaffirm that the DoC conformity is to be monitored considering crude oil production, based on the information from secondary sources, and according to the methodology applied for OPEC Member Countries.
” Subscribing to the idea of compensation by those nations who produce more than the required production level as per the attached table and on top of their already determined production levels, and reiterating the critical importance of maintaining full conformity.”