The Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have agreed to a general production cut for next year and the extension of voluntary cuts by members to stabilise crude oil prices.

The organisation and its allies agreed to reduce overall production targets between January and December 2024 by 1.4 million barrels per day (bpd). With the reduction, total production by OPEC and non-OPEC members will stand at 40.463 million bpd.

After the decision was agreed upon, Saudi Arabia, the highest production quota, announced a production cut of one million bpd starting from next month.

Other members also agreed to extend earlier cuts till the end of next year.

Saudi’s output is expected to drop to some nine million bpd as against some 10 million bpd recorded last month.

The schedule of production level agreed at the end of the 35th OPEC and non-OPEC Ministerial Meeting in Vienna, Austria showed a production quota of 1.4 million bpd for Nigeria for next year, the eighth highest among the 20-member group.

In a communique issued at the end of the meeting, OPEC+ stated that the decisions were aimed at achieving and sustaining a stable oil market.

The cartel, which also welcomed the establishment of Dangote Refinery in Nigeria as well as two others in Kuwait and Saudi Arabia, explained that the production cuts and targets were taken as a precaution, proactive, and, pre-emptive approach.

The meeting decided to adjust the level of overall crude oil production for OPEC and non-OPEC participating countries to 40.46 mb/d, starting January 1 till December next year.

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