2023-06-04 22:05:47
A drop in oil production is coming. An agreement was reached by the 23 OPEC+ member states meeting in Vienna this Sunday, June 4, producers of around 40% of crude oil in the world. To boost the prices of black gold, the price of which has been at half mast for some time, they decided to lower the quotas, but the disagreements broke out in broad daylight.
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That it took a long time to take shape, this agreement: seven hours of discussions for in the end a maintenance of the reduction of the production quotas this year. Minus two million barrels per day. OPEC+ also decided to tighten the tap a bit more in 2024.
Saudi Arabia, the world’s largest exporter, goes even further with a voluntary drop of 500,000 barrels per day until December 2024. In any case, the unity that OPEC + wanted to display is seriously scratched.
African countries such as Angola, Gabon or Nigeria were not in favor of deep cuts in production, opposed to setting reference levels lower than the current ones.
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Next meeting in November…
« The United Arab Emirates, which wants to produce more, said to certain African countries: “but you, you cannot produce compared to the base which was decided by OPEC+ years ago, so you could lend a little more than your figure”. And some countries said “no way. Maybe we can’t produce at the level of what has been announced for the moment, but we have developments in progress and we can keep this room for maneuver . We don’t want to give it to you.” And this is one of the subjects that blocked this ministerial meeting of these 23 countries “, analyzes Francis Perrin, researcher at Iris and specialist in hydrocarbons
African countries finally had to give in. The capacities of each country will be reassessed. Next meeting of the 23 of OPEC+ at the end of November.
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