"OPEC is concerned about declining oil»

Morning new agencies:

According to an article in print for OPEC that the organization concerned about falling oil prices traded near their lowest levels in years, and it was willing to talk with other producers. WordPress in the article published in the latest issue of «OPEC Bulletin»: «continuous pressure on prices today by rising crude production, and market speculation remains a concern of OPEC members and all of his shares in the private sector.
The organization expressed renewed willingness to dialogue with other producers. "OPEC rejects» cut production without assisted non-member producers such as Russia who refused to also shrink before. WordPress on the article: "OPEC will always do its utmost to secure the environment for the oil market can achieve equilibrium under fair and reasonable prices. As the Organization has stressed on several occasions, she was ready to talk to all other producers. But this should be on an equal basis. The OPEC will protect their interests.
Oil prices fell below 49 dollars per barrel after last week's biggest increase achieved in two days in six years, driven by the supply glut and renewed concerns about China's economy. After an in-depth study of what OPEC's article «» resumed crude futures European measurement «Brent» oil light us crude increased height us $ 3 a barrel.
So, according to recent comments by the International Energy Agency, was estimating surplus production for consumption 3 million bpd in the second quarter of this year, and this is because of falling prices, according to a report in the financial times. The question for producers and consumers and investors is: '' how long will it take to market this cycle ends?».
The first caveat is that the natural course of the oil market may be reversed at any time, without notice, by political decisions. The Saudis have decided that stability in the region and on their better attained through production cuts and created new balances instead of seeking to expand market share, and others suffer large losses.
According to the financial times, there is an opportunity to do so, and that the Saudis are exposed to considerable pressure exerted by members of OPEC. But Riyadh stands by its position, suggesting that the assignment is difficult.
According to the financial times, there is a possibility to increase production over the next two years at least, Iran will increase their production and exports slowly over the next 12 months, what CSIS Foundation report. This will add 400 to 600,000 barrels to oil supply.
As we assume the financial times that Libya remains in chaos, and the missing Iraqi security will continue preventing the significant investments in Kurdistan, poses the following question: '' does forcing lower prices, after another week of volatility and stability, without the $ 50 with a decreasing trend over six months, us producers to reduce oil production?».
Oil shale production is flexible, and the issue is whether hydraulic fracturing costs through rates range between 40 and 45 dollars a barrel. The financial times says that there is no one sure crushing capacity.
On the other hand, declining production in the North Sea, where costs are high. But general operating costs less than $ 40, which means maintaining the production ceiling.
Demand, the International Energy Agency has predicted that rapid economic growth will reduce the excess supply in the second half of this year, through 2016. But these expectations at t by Chinese slowdown, so am art Lage today.
In the oil market, the expected survival of China a major source of growth in demand, with reduced consumption in the United States, Europe and Japan. It took place at the axe head, and take the impact of the crisis on spending and investment long before things became clear.