Abu Dhabi Will Increase Oil Production in 2024
One of the largest producers in OPEC, the United Arab Emirates intends to increase oil production in January.
Days before the Organization of the Petroleum Exporting Countries and its allies meet to discuss policies for the coming year, traders are focused on whether Saudi Arabia will extend its voluntary production cut of 1 million barrels a day into the new year. Although this decision remains uncertain, the kingdom’s Gulf neighbor has already reached an agreement allowing it to produce more oil, Bloomberg writes.
Thus, the United Arab Emirates will increase its production plan to 3.075 million barrels per day in January, which is approximately 135 thousand barrels per day more than last month. Abu Dhabi got the go ahead at the group’s last meeting in June when it said earlier production limits did not take into account capacity increases made by OPEC in recent years.
As part of the agreement reached in the summer, 2024 quotas for African members Angola, Congo and Nigeria were revised downwards. These new levels are subject to a review of each country’s capabilities by external consultants, meaning they could potentially change again before they come into force in January.
Nigeria produced about 36,000 barrels per day more than the new target last month, making an upward revision likely. Angola, by contrast, likely won’t be able to meet even the reduced quota as it struggles with underinvestment and aging oil fields.
