OPEC reduces production to 32.5 million b/d

The members of the Organization of countries-exporters of oil (OPEC) agreed to cut oil production by 1.2 million barrels per day. In anticipation of this announcement, oil prices rose 8%, reports BBC.

Iran, Saudi Arabia, Angola — satisfied. Indonesia — no
Countries non-OPEC agreed to cut production by 600 thousand b/d

OPEC is produced 33.6 million barrels of oil per day, that is, its production will decline by 4.5%. Production worldwide will decline by approximately 1%. This is the first decline in production since 2008.

Russia agreed to cut oil production by 300 thousand barrels per day, announced after the meeting in Vienna, the Minister of energy of Qatar and President of the OPEC conference Mohamed bin Saleh al-Sada.

The countries outside of OPEC should cut production by 600 thousand barrels per day, according to the OPEC. That is, Russia takes over half of this volume.

We will remind that on 26 November, Saudi Arabia refused to participate in the planned talks with Russia about the possible restriction of oil production by countries outside OPEC as a result, the negotiations, scheduled for November 28 in Vienna, was cancelled, the price of oil fell. While Iran insisted that he be allowed to restore the level of oil production to the level that was before the imposition of sanctions.

Today, the parties failed to compromise.

Iran, Saudi Arabia, Angola — satisfied. Indonesia — no

OPEC will reduce production to 32.5 million b/d, told journalists the Minister of oil of Iran Bijan Zanganeh, reports «Interfax-Ukraine».

Iran will reduce production by 90 thousand b/d from October, he said. Iran pleased with the results of the OPEC meeting, Zanganeh said.

Saudi Arabia will reduce production to 10,058 million b/d, said Minister of energy, industry and mineral resources Saudi Arabia Khalid al-falih. «It’s a good day for the oil market. We are very happy,» said falih.

Angola reduces oil production by 4-5%, Iraq will reduce production by 209 thousand b/d, Kuwait will reduce production by 130 thousand b/d, said the Ministers.

While Indonesia has decided to suspend its membership in OPEC, said the oil Minister of Kuwait, ANAS al-Saleh.

Agreement to reduce the OPEC production will start to operate since January, said the Minister of energy, industry and mineral resources of Saudi Arabia.

OPEC will establish a Committee for monitoring the implementation of the terms of the transaction, it will include Venezuela, Kuwait and Algeria, said the Minister of oil of Qatar.

In addition, according to al-Sada, the decision to reduce OPEC production may be extended for another six months after a meeting of the cartel on may 25.

Countries non-OPEC agreed to cut production by 600 thousand b/d

Countries non-OPEC agreed to cut production by 600 thousand barrels per day (b/d), told journalists the Minister of energy, industry and mineral resources of Saudi Arabia.

As noted by the AU-Garden, in particular, Russia is ready to cut production by 300 thousand b/d.

«We worked on Algerian scenario. We coordinated and reached an understanding between all countries that we are able to reach an agreement. The agreement is the responsibility of OPEC and non-OPEC for the overall health of the economy. The industry will be able to return to reinvest. We have studied all aspects and we understand that the market needs to be balanced. The rebalancing will be due to the OPEC decision and will be supported by several key countries-OPEC,» said al-Sada.

«The reduction will be 1.2 million b/d by OPEC countries and 600 million b/d by non-OPEC. We believe it’s achievable,» he added.




OPEC reduces production to 32.5 million b/d 01.12.2016

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