The price of a barrel of Brent crude reached $83 for the first time since April 25th, as the Organisation of Petroleum Exporting Countries meets today.
According to a review of global oil prices, Brent crude was trading at $83.60 at 7:47 a.m. GMT+1 on Thursday, November 30.
Crude producers are preparing for the OPEC meeting which was postponed due to a delay in some African oil producers demanding higher oil production baselines. OPEC members from Africa were offered a choice: either meet lower oil production quotas or prove they could increase production capacity by a given date in November 2023.
Despite their efforts to demonstrate improved production capabilities, African oil-producing nations face significant reductions in production allocations. This has given rise to disagreements and worries about possible effects on their investments in the oil industry.
As of November 28, efforts were still underway to persuade Angola and Nigeria to accept the terms, with other African countries mediating through their regional connections. Meanwhile, no consensus agreement had been reached as of November 29.
Nigeria faced difficulties in 2023 in fulfilling its 1.78 million barrels per day OPEC production quota. Nonetheless, Nigeria produced 1.5 million barrels per day in September and October 2023, which was the country’s highest production level of the year. This production figure includes condensates.
The chief OPEC correspondent, Amena Bakr, has reported that there will be three virtual meetings today: an OPEC meeting, a Joint Ministerial Monitoring Committee (JMMC) meeting, and an OPEC-plus meeting where the ultimate decision is presumably going to be made.
OPEC will convene at 3 PM GMT today.
The federal government has established a benchmark crude oil price of $77.96 for the upcoming budget as 2024 draws near, along with an exchange rate of N750 to the dollar.
