Nigeria, Angola Reject OPEC

Nigeria, and Angola Reject the OPEC

The Stalemate Over Oil Production Quotas

Hey there! So, there’s this thing called OPEC, which stands for the Organisation of Petroleum Exporting Countries. They’re a group of countries that work together to control the production and price of oil. But recently, two countries, Nigeria and Angola, have said they don’t want to reduce the amount of oil they produce.

The Problem with Quota Limits

Here’s the deal: OPEC wants to lower the production quotas for Nigeria and Angola in 2024 because they’re not producing as much oil as before. But these two countries are not happy about it. They think the new limits don’t reflect their actual capabilities.

A Delayed Meeting

Because of this disagreement, OPEC had to delay an important meeting to figure things out. The meeting was supposed to happen on November 30, 2023, but now it might be delayed even further.

The Need for a Solution

OPEC and its partners need to come up with a plan for oil production in 2024. Experts say that more cuts might be necessary because the price of oil is going down. Saudi Arabia, one of the leaders in OPEC, wants other countries to reduce their quotas too.

The Dispute Over Quotas

Nigeria and Angola are not happy with the changes to their oil production targets. These targets were agreed upon in a previous meeting, but now they want them to be reviewed again. Nigeria wants a slightly higher quota, while Angola wants a lower one than before but higher than what the consultants suggested.

The Cost of Not Reaching an Agreement

If OPEC can’t agree, it could be really bad for the 23 countries in the group. They rely on the money they make from selling oil to run their governments. So, not reaching a consensus could have serious consequences.

Tinubu’s Vision for Nigerian Oil Refining

Predictions and Possible Solutions

Experts are saying that OPEC might need to announce even more cuts to oil production. If they don’t, the price of oil could drop even further. Some analysts think that a reduction of one million barrels per day would be enough to stabilize the market.

As part of a previous deal, the United Arab Emirates got permission to increase their oil production a little bit. But now, it’s unclear if they’ll give up that boost to help the market.

So, that’s the situation with Nigeria, Angola, and OPEC. We’ll have to wait and see what happens next!

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