By Bassey Udo
The 32nd OPEC and non-OPEC Ministerial Meeting held a videoconference on Monday and resolved to cut members crude oil production by only 100,000 barrels per day.
Members of the ten OPEC member countries, including Nigeria, are expected to cut a total of 26, 689 barrels per day, a production cut schedule issued at the end of the meeting revealed.
Nigeria, with oil production capacity declining to about 1.43 million barrels per day at the end of the second quarter of the year, according to the National Bureau of Statistics (NBS) in its Gross Domestic Product (GDP) Report, will cut a further 1,826 barrels per day.
Similarly, the Non-OPEC members of the group would cut a total of about 17,165 barrels per day for the one-month period.
OPEC noted the adverse impact of the volatility in the crude oil market as a result of the subsisting Russian war against Ukraine, and the decline in liquidity on the current oil market.
During the meeting, the Ministers underlined the need to support the market’s stability and its efficient functioning with the decision to undertake a further cut from their productions.
A communique at the end of the meeting said the meeting noted that higher volatility and increased uncertainties in the crude oil market required the continuous assessment of market conditions.
Participants in the virtual meeting expressed their readiness to make immediate adjustments to production in different forms, if needed, adding that OPEC+ has the commitment, the flexibility, and the means within the existing mechanisms of the Declaration of Cooperation to deal with these challenges and provide guidance to the market.
In reaffirming the decision during the 10th OPEC and non-OPEC Ministerial Meeting on April 12, 2020, the group further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on July 18, 2021.
Although the latest cut was only intended for the month of September 2022, the meeting agreed to revert to the production level of August 2022 for OPEC and non-OPEC Participating Countries for the month of October 2022.
Members asked the Chairman of the group to consider calling for an OPEC and non-OPEC Ministerial Meeting anytime to address market developments, if necessary.
They reiterated the critical importance of adhering to full conformity and to the compensation mechanism, adding that compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
The 33rd OPEC and non-OPEC Ministerial Meeting was scheduled for October 5, 2022.