OPEC+ to cut crude oil production by 2million barrels per day

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Nigeria slashes production to 1,742mb/day

Uba Group

BY BAMIDELE FAMOOFO

The Organisation of Petroleum Exporting Countries and Non OPEC members, at their meeting at the OPEC Secretariat in Vienna, Austria on Wednesday, agreed to cut down on production of crude oil to the tune of 2 million barrels per day, beginning from November.

Nigeria, being a member of the body agreed to slash production by 84 million barrels per day from November 2022 till December 2023, cutting production voluntarily to 1,742 million barrels per day.

The agreed cut by OPEC would be the biggest after the Covid-19 pandemic.

Meanwhile, the move has been criticized by the United States, nothing that it would spell a big doom for the economies of nations.

Both OPEC and Non-OPEC members met in Austria during their 33rd meeting and the 45th meeting of the Joint Ministerial Monitoring Committee meeting to take the decision.

Part of the decisions taken at the meeting was to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020 and further endorsed in subsequent meetings including the 19th OPEC and non-OPEC Ministerial Meeting on 18 July 2021.
The meeting also extended the duration of declaration of cooperation until the 31st of December 2023.
Other issues agreed upon at the meeting were to reconfirm the baseline adjustment approved at the 19th OPEC and non-OPEC Ministerial Meeting; adjust the frequency of the monthly meetings to become every two months for the Joint Ministerial Monitoring Committee (JMMC); hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every 6 months in accordance with the ordinary OPEC scheduled conference.

The other critical decisions that formed the communiqué of the meeting include granting the JMMC the authority to hold additional meetings, or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments if necessary and to extend the compensation period to the 31st of March 2023. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and Non-OPEC Ministerial Meeting.

The 34th OPEC and Non-OPEC Ministerial Meeting is scheduled to hold on December 4, 2022.