Opec has closed the circle. After having decreed a cut in production by 1.2 million barrels per day, the Organization of the countries exporters of oil, is able to bring his twelve producers external to the group, who in turn have committed themselves formally to remove from the market about 600 thousand barrels per day. The agreement establishes the first joint intervention between the Opec countries and not from the past fifteen years, but participation was so broad you could not see from the ’70s: to coordinate were the countries responsible for over 50% of the global oil supply.
Oil-the way to Vienna, the meeting between the Opec and the Countries “non-aligned”
“This is really a historic summit”, said the secretary general of Opec, Mohammed Barkindo. “We will give a boost to the global economy and will help some Oecd countries to reach the goals of inflation”.
in Addition to Russia, which confirmed a cut of 300 thousand bg, and Oman, which from the beginning had guaranteed his support, among the large producers who responded to the appeal, there are also Mexico and, surprise, Kazakhstan. While the participation of the central american country was once taken for granted – having regard to its production of oil is expected to decline in the next year – in the case of Astana it is a real surprise: the maxigiacimento of Kashagan has just been launched, after years of waiting, and in 2017, the international energy Agency expected that the production package is forecast to increase 160 thousand bg. Other non-Opec countries that have promised to contribute – with cuts of varying size – are Aze rbaijan, Bolivia, Brunei, Equatorial Guinea, Malysia, Sudan, and South Sudan.
Oil, Opec and Russia will promise “cuts” but they extract more
The negotiations had gone on for months, accompanied from the operators of the market by moments of excitement, alternating with phases of deep skepticism, arrived at the peak at the end of April, when the Doha summit failed miserably because of the inability to find a compromise between the positions of saudi and iran. The minister of Energy of the Russian, Alexander Novak, and also stated yesterday that experience, stressing that it served as a lesson: “In April we were very close to reaching a historic agreement, that would mark the beginning of a new era in oil market global”. The participation in the “active and responsible” on the part of producers in non-Opec has allowed, according to Novak, to turn the page.
The Opec meeting of November 30, he scored a quick and surprising breakthrough in negotiations, allowing a unanimous decision that until the last few are expected. Yesterday – in an apparently easy and safe – added the missing piece, which is fundamental to sustain the whole structure of the agreement: the cutting of 1.2 mbg promised by Opec was in fact bound to the cooperation of countries external to the other 600 thousand bg reduction.
Opec cut production, the oil takes flight (+9%)
Since the arrival in Vienna, the ministers invited to the meeting yesterday you were shown optimistic. “We have an agreement”, stated the saudi Khalid Al Falih. “I think that all the countries that are here want to cut,” he added, the algerian Noureddine Bouterfa, one of the key figures in the lengthy negotiations of the past months, capable of pushing to the mediation, even Iran and Iraq, which until the latter had pointed to the foot of the demands of collaboration to the cuts.
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