Will OPEC+ increase output cuts?

OPEC+ oil producers are gearing up to agree on output cuts of at least one million barrels per day for early next year, with Saudi Arabia taking the lead by continuing its voluntary additional cuts while other members impose smaller curbs. According to reports from Reuters, two delegates have hinted at this outcome. The meeting's ongoing discussions have prompted Temitope Kolade, the Senior Manager of the Oil, Gas, and Power Unit at Andersen Nigeria, to join CNBC Africa and shed light on the potential ramifications. The discussions touch on critical points such as Nigeria and Angola's reluctance to comply with the proposed cuts due to budgetary concerns and the need to diversify their revenue sources. As Saudi Arabia voluntarily reduces its oil production by over a million barrels per day since July, other members are urged to follow suit to stabilize prices and avoid supply surpluses. However, the dependence on oil prices poses challenges for these countries, emphasizing the necessity of exploring alternative revenue streams. Kolade emphasized the importance of Nigeria investing in local refining to reduce reliance on exports and stimulate domestic consumption. He suggested that prioritizing refinery operations and addressing production challenges would attract investors and drive long-term growth. The interview also touched upon Nigeria's goal to achieve self-sufficiency in petroleum products by ending imports by 2024, signaling a shift towards enhancing local refining capabilities. The discussions underscore the delicate balance between meeting production targets, managing budget expectations, and attracting investments, particularly in the face of an oversupplied oil market. Kolade highlighted the significance of collaborative efforts and compromising on production targets for the collective benefit of OPEC+ members. As countries navigate operational disruptions and aging oil fields, investing in infrastructure and technology remains crucial for sustaining production levels and driving economic growth. The need for proactive measures to boost refining capacity, optimize resources, and attract investments is paramount in securing a stable and prosperous future for oil-producing nations.