Oil markets are looking forward to a decisive week with meetings near «OPEC»


Dollar rise and the intensification of competition on the market shares are delaying the recovery of prices

Expect specialists in the oil sector to be this week of important weeks in the market's history, which is held at the end of the ministerial meeting No. 168 of the Organization of Petroleum Exporting Countries "OPEC" in Vienna amid continuing instability and the decline dominant market prices over the past months.

Specialists said, "The market will be controlled by a state of relative calm in anticipation for the outcome of the ministerial meeting for" OPEC ", though most of the weights are in the direction of maintaining the same daily production estimated at 30 million barrels a level of the organization."

In contrast, others expected to result in an interview a few days ago from Saudi Arabia to cooperate with all producers and strong desire to restore the stability of markets for new measures to support prices, despite the case of severe competition for market shares, which led to a race to increase production and to try to gain new markets.

He says for "economic," said Dr. Philip Depeche president of the European Initiative for Energy, "The meeting of the" OPEC "next expected to discuss many of the mechanisms that support stability in the market, and there is already a desire among producers to gain access to a stable and balanced market, but the biggest challenge remains in How to agree on this especially in light of some convinced of the need to reduce production to support prices mechanisms, while others are convinced of the futility of this action ".

Depeche He pointed out that the market is already experiencing a continuing supply glut candidate and perhaps to increase in the coming period with the return of pumping Iranian exports, also it coincides with the rise of the US dollar expected to raise interest rates soon with, and all of these factors is pushing hard on oil prices.

Depeche He explained that the market balance automatically process which is betting on the Gulf states, Russia and the process may be relatively slow, with some producers in less developed countries need growth to urgent action to support prices after exacerbated losses and economic burdens and strained budgets in many countries, which is a crude oil the main source and possibly the only national product.

Depeche He pointed to the importance of the United Nations conference on climate change, which kicked off in Paris in reaching an international consensus on the face of climate change and its impact on investments in the field of conventional energy change, stressing the need to rush producers to cut carbon emissions and the use of advanced technologies in all aspects of the production process.

He explained for "economic", Dr. Ambrgio Vasuly Director, Center for Energy Studies in the Swiss city of Lausanne, that the oversupply will continue to impact more than expected but there are strong indications on the direction of shale oil to the rapid decline in the new year, and if coincided with improved demand indicators will be market recover faster.

Vasuli noted the importance of exit "OPEC" meeting by year between producers especially that the past months have seen competitive and wide on the private market shares between Saudi Alinvtin and Russian in eastern Europe markets, as we have seen an acceleration in the production of Iraq and Iran's quest to restore the markets that have already been lost because of the sanctions economic.

Vasuli explained that the issue will continue to reduce production producers are on the table in a state of oversupply and weak demand in exchange for a an important issue, and that compatibility which can occur if all producers, whether in agreement "OPEC" or outside on the cut.

For his part, stated for "economic", Marcus senior professionals AT control research firm oil and gas Krug, that the rise in India's imports of oil a good indicator of the recovery of demand levels, as China's second-largest oil consumer, has been largely successful in stimulating its economy plan, pointing out The US economy also bring positive results, and all these factors are consistent with the expectations of "OPEC" that the balance of the market is not far away.

Krug pointed out that some of the concern is that the market return expected to pump Iranian exports high levels especially as Iran refuses to coordinate with the "OPEC" in this regard, pointing out the importance that the next meeting testifies understandings with the Iranian side on the need for coordination with the Organization on increasing exports and the commitment of Tehran requirements of membership In "OPEC".

Krug added that "if an agreement was reached with Iran on adjusting production Vsiqll that market concerns about the worsening state of oversupply," noting the need to think about the issue of reducing production seriously and to be by and consensus among all producers, although this is difficult under the stage current.

Krug stressed the need to discuss the issue of support for oil investment and create the atmosphere again in front of her to restore the momentum of economic activity and especially after the last period caused the postponement and cancellation of many projects, which threatens the future security of energy supplies and the needs around the world.

The crude oil prices in New York fell at the close of trading last week, with the dollar rising to its highest level in eight months and a sharp drop in shares of Chinese pressure on futures contracts, which severely affected Ptkhmh supplies increased.

According to "Reuters", futures for crude West Texas Intermediate fell more than 2 per cent with the resumption of trading after the holidays while the decline "Brent" by about 1 per cent.

Fatih Birol, Executive Director and expect the International Energy Agency and the arrival of world oil prices to near $ 80 a barrel by 2020, pointing out that the decline requires stability of the Middle East region and the stability of production.

According to the Energy Agency in a report that global oil investment is low 20 per cent in 2015 is expected to decline in 2016.

© 2015 economic