Russia, Venezuela, Qatar and Saudi Arabia have agreed to freeze oil production

Representatives from Russia, Qatar, Venezuela and Saudi Arabia agreed to freeze oil production at the level of 11 January. For background information about the meeting the price per barrel of Brent crude oil rose above $ 35. About it reports Bloomberg with reference to the oil Minister of Saudi Arabia Ali al-Naimi.

As reported by Reuters, the talks in the Qatari capital attended by Russian energy Minister Alexander Novak, the Minister of oil of Saudi Arabia Ali al-Naimi, oil Minister of Venezuela , Eulogio del Pino and their colleague Mohammed al-Garden.

Qatar later confirmed that between Emirate, Russia and Saudi Arabia reached an agreement on «freezing» of oil production. About it as transfers TASS, reported the TV station Al Arabiya.

According to him, «Qatar has confirmed an agreement with Russia and Saudi Arabia about «the freezing of oil production at the level of January.» However, as has informed the representative of the Ministry of oil of Qatar, «the term of this agreement is the approval of other countries — oil producers».

The energy Ministry after the meeting said that the participants agreed to freeze production at the level of January on the condition that other manufacturers will join this initiative, «Interfax».

We will remind, Saudi Arabia recent months insisted that it will not cut oil production, despite the drop in fuel prices to 12-year low, as long as the large oil producers outside OPEC will not agree to cooperate.

On the news about the meeting in Doha oil prices in the first half of the day on Tuesday, showed a positive trend. 10:38 Moscow time the barrel of Brent was trading at the level of the mark 35,27 dollars per barrel. However, after midday the price dropped to 34,88 dollar by 12:44 — to 33,25 USD.

The rise in oil prices was accompanied by strengthening of the ruble against major European currencies. And both the dollar and the Euro during trading on the Moscow stock exchange fell almost on the ruble and the lows dropped below 76 rubles and 85 rubles respectively.

The ruble, however, interrupted the strengthening in a few minutes after the appearance of news about the results of the meeting in Doha. Dollar and Euro rose more than the ruble. Experts now say that the market was waiting for more tough decisions, and the ruble, as before, follows the movement in oil prices.

Fulfilled the warning that, as oil prices in the last three days has grown so much, the speculators will think about taking profits, and then oil prices will fall, says RBC.

Last week amid sharply falling oil prices, the dollar rose above 80 rubles, Euro — 90 rubles. For a while they overcame a level of 83 rubles and 91 rubles, respectively.

In early February it became known that the Minister of oil of Venezuela made an agreement with OPEC and with Russia about the planned meeting to discuss the agreement for the conservation at the same level of oil supplies on the market.

Russian economy Minister Alexander Novak said earlier that within the framework of OPEC discussed the possibility of reducing the production of oil producing countries by about 5% for increase in oil prices.

Newspaper the Wall Street Journal, citing unnamed representatives of the OPEC, writes that in the last days began to be discussed a new idea — freezing the level of production for all exporting countries agreed not to increase production.

Total production in OPEC countries increased by 280 thousand barrels per day, up to 32,63 million. The international energy Agency expects slower growth in oil demand this year — with 1.6 million barrels per day to 1.2 million.

According to the IEA, Saudi Arabia in January was mined 10.2 million barrels per day, Russia — 10.9 million barrels, a record level since the Soviet Union.

Dynamics of prices for oil is under pressure of several factors. Its value has dropped because of the slowdown in economic growth in China, which is one of the largest consumers of hydrocarbons in the world of politics OPEC to increase production, but also due to the removal of international sanctions against Iran. The latter intends to sell abroad one million barrels per day.

Analysts refer to the possibility of coordinated action by oil-producing countries skeptically. Since every exporter is afraid of losing market share, production is not reduced.

Russia, Venezuela, Qatar and Saudi Arabia have agreed to freeze oil production 16.02.2016

Февраль 16th, 2016 by
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