OPEC+ moving closer to compromise with African producers, sources say
The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC’s headquarters in Vienna, Austria April 9, 2020. REUTERS/Leonhard Foeger/File photo
LONDON/MOSCOW -OPEC+ has moved closer to a compromise with African oil producers on 2024 output levels, four OPEC+ sources told Reuters, after disagreements over those targets forced the group of oil-producing nations to postpone a key meeting.
OPEC members Angola and Nigeria were aiming for a higher oil output allowance, officials told Reuters on Thursday.
The postponement of the meeting of Organization of the Petroleum Exporting Countries and allies such as Russia, known as OPEC+, from Nov. 26 to Nov. 30, sent oil prices sharply lower. But they have since recovered, with Brent crude prices on Friday trading above $81 a barrel.
READ: OPEC+ postpones policy meeting to Nov 30, oil falls
On Thursday OPEC said the meeting would be held virtually.
Article continues after this advertisementOne of the sources, who spoke on condition of anonymity, said he felt “with 99 percent of confidence” that OPEC+ could reach an agreement on Nov. 30.
Article continues after this advertisementA second source said that an “understanding has been reached” over the African producers issue.
Two other sources said that an agreement was near.
Nigeria’s governor to OPEC Gabriel Tanimu Aduda told Reuters on Thursday that he was not aware of any disagreements with other members of OPEC+ over his country’s production targets.
Nigeria and Angola were among several countries given lower targets at the last OPEC+ meeting in June after years of failing to meet the previous ones.
As of October, Angola was pumping less than its quota for 2024, according assessments by independent sources cited by OPEC.
READ: OPEC+ to consider whether more oil cuts needed – sources
Nigeria is pumping close to its 2024 quota of 1.38 million bpd but less than a 2024 level of 1.58 million bpd being considered for it subject to independent assessments.
Several analysts have said they expect OPEC+ to extend or even deepen oil supply cuts into next year in order to support prices.
The market is also waiting to see if Saudi Arabia extends its additional 1 million bpd voluntary production cut, which is due to expire at the end of December.
