Double bottom barrel
OPEC may cut oil production even more than previously stated. Everything will depend on market conditions. But, according to experts, the prices on expectations of reduced production has grown so much that OPEC may eventually opt out of the production level of freezing – just in accordance with market conditions.
Organization of – Petroleum Exporting Countries may reduce production below the previously stated limits.
“We estimate the market at the end of November in Vienna, and if the 700 th. Barrels. is not enough, we will go further “, – the Minister of Energy of Algeria Noureddine Butarfa said, reports Reuters.
In late September, the OPEC countries have adopted the limitation of the production decision at the level of 32,5-33 million barrels. in a day. According to the organization, in August, OPEC was producing 33.23 million barrels, and in September set a new record -. 33.75 million barrels. when the current quota of 30 million barrels. / day. But this quota for a long time no one country does not adhere to the cartel, if countries such as Saudi Arabia and Angola, production decreased, Nigeria and Libya, on the contrary, have increased.
The decision to commit taken, but no documents have been signed. Russia, which participated in the negotiations, withdrew its delegation before in Algeria began discussing the fixing of production. In September, the volume of oil production in Russia increased by 4% compared to August and amounted to 11.11 million barrels. in a day. Similar figures the Russian oil sector demonstrated only in the USSR period.
Russia (which is not a member of OPEC) said it will wait for the decision of the cartel. The head of the Russian Ministry of Energy Alexander Novak said earlier that the freezing level of production in Russia’s interest. “At the current level,” – said the Minister. At the same time Russia also updates production records.
The idea of fixing the level of production occurred in the beginning of the year, when Russia, Saudi Arabia and Venezuela have offered to freeze production at January’s volume level.
The agreement fell through because of Iran who has announced that he wants to achieve dosanktsionnyh production levels. US and EU sanctions have limited Iran’s oil exports and, consequently, production. Dosanktsionny level version of the Islamic Republic of Iran – is 4 million barrels. in a day. Now Iran is close to this level, and says that it is ready to support measures to stabilize the oil market. However, such statements of Iran did the last time.
On the one hand, the production level of frost is now in the interests of a number of OPEC countries (such as Venezuela and Algeria), but the main thing – the organization leader, Saudi Arabia.
“Now the Saudis are no longer willing to continue strategic game aimed at inflicting maximum damage on other players in the oil market due to the retention of low prices,” – says the managing director of “BCS Ultima” Vitaly Bagamanov.
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