OPEC+ agrees not without difficulty on a production cut

2023-06-04T20:17:55.454Z

Highlights: OPEC+ agrees not without difficulty on a production cut. To boost the prices of black gold, OPEC + decided to lower quotas, but disagreements have erupted into the open. African countries such as Angola, Gabon or Nigeria were not in favour of deep cuts in production. The capacities of each country will be reassessed. Next meeting of the OPEC+ 23 at the end of November. The United Arab Emirates, which wants to produce more, said to some African countries: "You can't produce compared to the base that was decided by OPEC+ years ago"

A decline in oil production is coming. An agreement was reached by the 23 OPEC + Member States meeting in Vienna on Sunday 4 June, producers of about 40% of the world's crude oil.

OPEC+ agrees not without difficulty on a production cut

A decline in oil production is coming. An agreement was reached by the 23 OPEC+ member states meeting in Vienna on Sunday 4 June, producers of about 40% of the world's crude oil. To boost the prices of black gold, whose price has been at half-mast for some time, they decided to lower quotas, but disagreements broke out.

To boost the prices of black gold, whose price has been at half-mast for some time, OPEC + decided to lower quotas, but disagreements have erupted into the open. AFP/Archivos

Text by: RFI Follow

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How long it took to draw up, this agreement: seven hours of discussions for in the end a maintenance of the reduction of production quotas this year. Minus two million barrels per day. OPEC+ has also decided to tighten the tap a little more in 2024.

Saudi Arabia, the world's largest exporter, is going 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 favour of deep cuts in production, opposed to setting lower reference levels than those currently present.

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Next meeting in November...

The United Arab Emirates, which wants to produce more, said to some African countries: "but you can't produce compared to the base that was decided by OPEC+ years ago, so you could lend us a little more of your figure". And some countries said "no way. Maybe we are not able to produce at the level that has been announced for the moment, but we have developments underway and we can keep this room for manoeuvre. 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 eventually had to give in. The capacities of each country will be reassessed. Next meeting of the OPEC+ 23 at the end of November.

OPEC+ agrees not without difficulty on a production cut

OPEC+ agrees not without difficulty on a production cut

Next meeting in November...

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