{OPEC} expects the adoption $ 50 a barrel later this year

3/10/2016 0:00

BAGHDAD follow Farah pumice
Producing countries of crude oil is seeking from inside and outside the Organization of «OPEC» to correct global market path to balance, especially after the recent agreement to these countries to freeze production at the levels of a month in January to support crude prices, in the first «world» agreement in 15 years.

And reinforced «OPEC» that hope, as five of the 13 members of the «OPEC», Saudi Arabia, Kuwait, UAE, Qatar and Venezuela, with Russia agreed earlier to freeze production at January last support price levels, whether approved by other countries, including Iran, to join this agreement, according to the «CNN».

But this agreement, which knew the title of «the biggest freeze» in the oil markets, needs the participation of other countries such as Iran, which its officials have confirmed that they will go ahead with plans to pump the amount of one million barrels of oil a day in global markets, according to Reuters, but the results of the talks and the agreements preliminary adult oil producers in the world pushed hastily prices forward, scored global London Brent crude futures up to $ 41 a barrel last Monday, while declined again by 62 cents at $ 40.27 a barrel, but it is still up 46 percent from the lowest level in 12 years by $ 27.10 recorded in the January 20, either basket «OPEC» containing 13 Khama, was registered to $ 35.07 a barrel, according to the Organization of Petroleum exporting countries site.

Wave landing

Top producers began in the Organization of Petroleum Exporting Countries «OPEC» expect new prices for oil close to $ 50 a barrel, in a positive sign that the long-term downside wave in the market officially ended.

And is compatible price with the analysts' average forecast for US crude in 2017, according to the latest Reuters poll, but it is much higher than the average forecast for this year of $ 38 a barrel, although some argue that the decline in US production provides support to the market, but fears of slowing demand and satiety in the current production, inventory shrinkage of global opportunities to achieve the highest price gains.

Moreover recede opportunities freeze production levels of coordination between producers to stop growing oversupply in excess of one million barrels per day above the volume of consumption at a time when Kuwait said OPEC member it would not abide by the freeze unless attended by all the major producers including Iran.

Production levels

The Russian Energy Minister Alexander Novak said in previous statements: that a meeting between the «OPEC» members and senior producers outside the freeze on production levels, will be held on March 20 in Moscow.

Producers decision

But the UAE Energy Minister said he had not received any call yet for a meeting between the «OPEC» members and senior independent producers to freeze production levels, stressing that if the decision was reached unanimously among producers, the UAE will cooperate with any rationalization efforts to address this situation.

But if Saudi Arabia began and other Gulf producers influential in «OPEC» in consideration of $ 50 «fair price for producers and consumers», maybe it refers to the end of a long period of unusually reluctant to which the organization for efforts to control the market, according to Gary Ross, Founder and Chairman board of Directors and CEO of PIRA Consulting, based in New York.