Saturday, December 10, 2016

Oil, Russia is added to cut production Opec – The Republic

MILAN - Russia will Also attend the agreement reached by the Countries of the cartel Opec to cut daily production of oil of 1.2 million, falling to the share of 32.5 million. Moscow has taken a commitment with Saudi Arabia and other producing Countries to cut its estrazone of 300 thousand barrels a day, which should be roughly half of the cuts is the “extra” compared to those in Opec, are expected from Countries outside the cartel, but in dialogue with it. From a meeting in progress in Vienna between the countries of the Opec and non-Opec, the same Russian minister of Energy, Alexander Novak, said he expected the accession by the other non-Opec countries will join th e agreement, indicating their other 300 thousand barrels per day of cuts. An axis between the Opec Countries and non-missing for fifteen years, and at the table of understanding is expected the participation of a dozen producers, among which Azerbaijan, Kazakhstan, Oman, Mexico, Malaysia and Bolivia.

The meeting in the austrian capital has on the agenda the definition of the details of the agreement reached last month. Analysts however remain divided on the outcome of the meeting with regard to the willingness of non-Opec countries to freeze the production. “We do not believe – said an analyst at JBC Energy that this meeting will have a significant role in the rebalancing of the oil market”. On the 30th November last, was agreed to cut production by 1.2 million barrels per day, going up to 32.5 million barrels in January. The Opec countries have invited 14 countries outside of the organization to take part in the meeting to discuss the agreement on measures to stabilize the oil market by asking them to reduce the production of 600 thousand barrels per day. What worries analysts is that – in the conditions of a timid recovery of the price, manufacturers shale americans can go back to produce at low cost, effectively cancelling the move of the Opec which accounts for 40% of the oil market.

Oil, Russia is added to cut production Opec

The fluctuations of Wti crude in the last six months, the price went to the rhythm of the openings or closures on the possibility of achieving an Opec agreement. The rise in the last few weeks

Russia, which is the largest producer of oil, has already indicated that it will cut its production starting from march next year from the current 11.2 million barrels per day. The oil companies must then reduce their production in proportion to their capacity. The effects of today’s meeting are to be made to feel on the market, in the last few days, though there remains scepticism to a considerable increase in die price in 2017. Yesterday, oil closed on the rise: crude Oil gained 61 cents (+1.2%) 51,45 dollars per barrel, the Brent crude rose by 34 cents (+0,6%) 54,23 dollars per barrel.

Topics:
oil
Opec
Russia
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