At least 1.2 million barrels of oil will no longer be produced by OPEC and non-OPEC member countries starting on 1 January in a joint effort that has been made since 2016 to balance crude oil prices on the international market.
The decision for this second cut in production, which is set at 3.02% for each member state, was adopted at the 175th OPEC conference held on 6-7 December 2018 in Vienna, Austria, as a result of prices falling to lows of US$50 in November and December, after reaching US$85 per barrel in October.
Angola, with a reference production of 1.528 million barrels per day, may cut 47,000 barrels a day, as opposed to the 29,000 barrels previously forecast, which will mean lowering production to 1.481 million barrels per day.
Sonangol president Carlos Saturnino said in Luanda in December 2018 on a visit to Luanda by OPEC Secretary-General Mohammad Barkindo that a desirable oil price in 2019 would be between US$60 and US$70 per barrel.
Saturnino noted that no oil company would have losses if the price were US$61 per barrel.
The measure, which will last for six months and is due to be evaluated in April (two months before the deadline), is intended to reduce excess stock and the imbalance between supply and demand.
Between 2014 and 2016, world oil supply exceeded demand by 1.5 million stored barrels per day, when world supply increased by 5.8 million barrels per day, while demand grew by only 4.3 million barrels per day.
OPEC accounts for more than 40% of world oil production, with a daily average of 32.7 million barrels per day.
Angola has been a member of OPEC since its creation in 1960 in Baghdad, Iraq. (macauhub)