Saudi Arabia proposed agreement aims to achieve the oil balance

By Roudao

one hour ago

Roudao - Erbil

US bulletin specialized energy affairs said that Saudi Arabia will propose an agreement aims to achieve a balance in the oil market, and will include a demand that Iran and Iraq in -alaazavin Organization Oopk- reduction of production growth, also includes the participation of non-members of the Organization countries such as Russia.

Energy Intelligence indicated that Saudi Arabia will call for OPEC to cut production by one million barrels per day next year, but that is conditional on the commitment of the other Member States of the Organization and from outside producers such as Russia, Mexico, Oman, Kazakhstan concerted effort.

With regard to Member States in OPEC, the proposed agreement involves the Kingdom of Iraq proves that oil production at the current level of around four million barrels per day, and engage Iran, "which expects to lift Western sanctions imposed on them early in 2016," in those efforts.

Analysts say it would be difficult to obtain approval of the proposal to all the parties concerned, as opinions differ on producers who have production should be cut or capped.

Said Rick Spooner, senior analyst at ACM Markets in Sydney "The market would like to hear the views of other parties and to check on the possibility of achieving it, it lies not only in other producers approve the agreement, but also in their commitment to him."