In a development that has cast a shadow over OPEC’s efforts to stabilize oil markets, Nigeria and Angola have reportedly opposed a reduction in their crude oil production quotas proposed by the Organisation of Petroleum Exporting Countries (OPEC). The impasse has led to a delay in a crucial meeting aimed at finalizing production policies amid falling oil prices.
According to Bloomberg’s report on Tuesday, the deadlock has left OPEC struggling to find common ground with the two African nations, as they resist accepting lower production quotas for 2024. The proposed limits are intended to reflect the diminished production capabilities of Nigeria and Angola. Sources familiar with the matter revealed that the Saudi-led alliance has been unable to secure an agreement with the two countries, causing the postponement of a critical meeting.
The report suggests that the stalemate may persist, with no resolution expected before the scheduled OPEC meeting on November 30, 2023. There is speculation that a further delay might be necessary to navigate the disagreements between OPEC members.
OPEC and its partner nations are under pressure to finalize production policies for 2024 as crude prices hover around $80 per barrel, raising concerns of a renewed surplus in the market. Saudi Arabia, which voluntarily reduced its oil production by one million barrels per day since July, is urging other coalition members to share the burden of cuts by reducing their quotas.
The discord between OPEC members, particularly Nigeria and Angola, underscores the challenges in reaching a consensus on production policies that balance the interests of individual nations within the coalition. The outcome of the upcoming meeting will not only impact the oil market’s stability but also influence the broader global economic landscape. As stakeholders await further developments, the uncertainty surrounding OPEC’s ability to navigate these disagreements raises questions about the future trajectory of oil prices and market dynamics.
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