OPEC COMMIT TO ENHANCE COLLABORATION FOLLOWING ANGOLA WITHDRAWAL
Following Angola’s withdrawal from OPEC, the organization has pledged to strengthen collaboration within the wider OPEC+ producer alliance. Despite
Following Angola’s withdrawal from OPEC, the organization has pledged to strengthen collaboration within the wider OPEC+ producer alliance. Despite Angola’s decision to leave, OPEC affirms its commitment to ongoing cooperation and dialogue, scheduling a meeting on February 1 to assess the implementation of its recent oil output reduction.
In a statement, OPEC emphasizes the importance of continued collaboration among member countries and allies like Russia. The organization asserts that such cooperation will yield benefits for producers, consumers, investors, and the global economy as a whole.
While Angola’s departure on December 21 led to a temporary drop in oil prices and raised concerns about unity within OPEC and the broader OPEC+ alliance, the official OPEC statement makes no specific reference to Angola. Instead, it underscores the unity of OPEC members and their dedication to shared objectives of cohesion, both within the organization and with non-OPEC producing countries participating in the Declaration of Cooperation (DoC), the formal name for OPEC+.
Despite recent doubts about OPEC+ cohesion contributing to a decrease in oil prices, Wednesday saw a 3% rise in oil, with Brent crude surpassing $78 per barrel due to supply disruptions in Libya’s top oilfield. However, Brent remains below the levels seen in September, reaching nearly $98, reflecting lingering uncertainties about OPEC+ unity.
To support the market, OPEC+ is implementing additional voluntary oil output cuts totaling approximately 2.2 million barrels per day for the first quarter of 2024. These measures build upon earlier reductions announced in various stages since late 2022.
Quest: Emmanuel kelvin