Page 10 - AfrOil Week 40 2021

AfrOil PERFORMANCE AfrOil

OPEC+ maintains production policy

GLOBAL MARKETS THE OPEC+ group announced this week that their part in the 400,000 bpd uptick. One source
it will stick with its planned production increase involved in the meeting told S&P Global Platts:
of 400,000 barrels per day (bpd) of oil up to the “To be honest, the group is not bringing back
end of November. Its decision is likely to support 400,000 bpd a month. Many producers can’t
price increases amid buoyant demand, as econo- meet their targets.”
mies recover from the coronavirus (COVID-19) However, another source was quoted by Reu-
pandemic. ters as saying that despite the calls for a higher
In a press release accompanying the production increase, OPEC+ did not want to
announcement, OPEC said that the group had make any significant moves, noting that the
“reaffirmed the decision of the 10th OPEC and industry was “scared of the fourth wave” of the
non-OPEC Ministerial Meeting on April 12, coronavirus (COVID-19) pandemic.
2020, and further endorsed in subsequent meet- With Brent crude rising to more than $81 per
ings including the 19th OPEC and non-OPEC barrel on the news, prices have now surged by
Ministerial Meeting on July 18, 2021.” 50% to a three-year high.
It added that during the October 4 meeting, The OPEC+ group’s next meeting is sched-
OPEC had “reiterated the critical importance uled to take place on November 4. ™
of adhering to full conformity and to the com-
pensation mechanism, taking advantage of the
extension of the compensation period until the
end of December 2021.”
This marks the latest effort to bring into line
producers that have failed to comply with output
quotas. Russia, Iraq, the UAE, Bahrain, Gabon
and South Sudan have all exceeded their quotas
to varying extents in recent months. However,
Iraq and the UAE in particular have regularly
been guilty of overproduction in recent years.
The statement noted that “compensation
plans should be submitted in accordance with
the statement of the 15th OPEC and non-OPEC
Ministerial Meeting”.
Meanwhile, there is scepticism that several Members of the OPEC+ group’s Joint Ministerial
member states will not even be able manage Moritoring Committee (JMMC), shown in 2018 (Photo: OPEC)

POLICY
Spain remains assured of continued

Algerian gas supplies, Albares says

ALGERIA/MOROCCO OFFICIALS in Algiers have confirmed that about the continuity of natural gas supplies.”
Algeria will guarantee natural gas supplies to Earlier last month, Algeria and Morocco
Spain, Spanish Foreign Minister Jose Albares cut their diplomatic relations, causing Spain
said in a statement following a visit to Algiers to worry about gas deliveries. The Southern
Questions about the reliability of Algerian European country relies heavily on Algerian
gas flows to Spain have arisen amid a looming gas, which it receives via a pipeline linking
energy crisis that is spreading across Europe. But Algeria to Spain through Morocco. Shipments
Albares said after a meeting with Algerian For- have been arriving within the framework of a
eign Affairs Minister Ramtane Lamamra that he 25-gas distribution deal between Spain, Algeria
was not worried. and Morocco that is due to expire by the end of
The foreign minister described Algeria as “a October.
first-rate partner for Spain.” He also told report- Both Algeria and Morocco stand to lose if the
ers after the meeting that he had been “reassured gas transit deal is not renewed by then.

P10 www. NEWSBASE .com Week 40 06•October•2021