Nigeria and Angola Decline OPEC’s Proposal for Oil Quota Reduction
Nigeria and Angola have expressed their opposition to a reduction in their crude oil production quotas set by the Organization of the Petroleum Exporting Countries (OPEC).
According to a Bloomberg report on Tuesday, OPEC faced challenges in resolving the deadlock over oil production quotas for certain African members, causing a delay in a critical meeting. Delegates reported that the Saudi-led alliance struggled to reach an agreement with Angola and Nigeria, which resisted lower quota limits for 2024 reflecting their reduced production capabilities.
Saudi Arabia sought reductions in oil-output quotas from other OPEC+ members to stabilize global markets, but some members, including Angola and Nigeria, resisted, according to OPEC delegates.
OPEC and its partners in the OPEC+ coalition needed to finalize production policy for 2024, with market analysts suggesting further cuts amid crude prices dropping toward $80 per barrel, anticipating a renewed surplus.
Saudi Arabia, voluntarily reducing oil production by one million barrels per day since July, asked other coalition members to cut their quotas to share the burden of cuts. However, Angola and Nigeria disputed changes to their oil production targets provisionally agreed upon in June, with both countries unhappy with the revised figures.
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Nigeria requested a 2024 quota of 1.58 million barrels per day, a slight increase from the provisional level, while Luanda proposed 1.18 million barrels per day, lower than the June-agreed figure but higher than the consultants’ estimate.
Failure to reach a consensus could have significant financial implications for the 23-nation coalition, heavily reliant on oil revenue to cover government spending. Crude traders had factored in the expectation that Saudi Arabia and Russia would extend their 1.3 million barrels per day additional supply curbs through the first quarter of 2024, with some anticipating more decisive action from the broader alliance.
