OPEC agrees to reduce the oversupply to support oil prices soonVmnaqsat economy 1/6
OPEC agrees to reduce the oversupply to support oil prices soonVmnaqsat economy
1/6/2016 0 Comments
Brought down the breakdown of relations between Saudi Arabia and Iran after the implementation of the death sentence in Riyadh cleric Nimr al-Nimr, the curtain on speculation that OPEC may agree in some way to reduce production to support oil prices in the near future. The survey showed that "Saudi Arabia ended the 2015 record production is high and there are no signs of reduced supplies to make room for Iran, which is planning to increase its production immediately after the lifting of international sanctions imposed on it this year.
The survey indicated that the average production of the kingdom in December stood at 10.15 million barrels a day, the survey was based on the navigational data and information from sources in oil companies in OPEC and advisers.
This means that production remained above ten million barrels a day for the ninth month in a row, the longest period above this level remains during the decades.
Saudi Arabia has led the design of the largest oil exporter in the world to defend its market share despite the global supply glut to falling oil prices to their lowest levels in 11 years.
It is expected to result in the lifting of sanctions on Iran under the nuclear deal for the largest increase in the supply of oil in 2016. The world now produces 1.5 million barrels per day over the volume of consumption and Iran pledged to add a million barrels a day to global supply over the next twelve months.
OPEC did not agree to put a ceiling on production at its previous meeting in Vienna last month amid a dispute between Saudi Arabia and Iran.
If there is any possibility that the foes beyond their differences in some way to agree on the management of production this year, this possibility has vanished on Monday when he announced that Saudi Arabia cut ties with Iran because of Tehran's reaction to the execution of the Saudi Shiite cleric Nimr.
Delegates said OPEC "They now do not see any chance of improvement in relations between the members of the organization, which has already reached a very low level over the past months."
Analysts said the Bank of America Merrill Lynch in a note "new escalation in tensions between Saudi Arabia and Iran could lead to an escalation of the war on the existing market share and create new downside risks to commodity prices."
Said Carsten Fritsch, analyst at Commerzbank "is not there, of course, any opportunity to do Arabia to cut oil supplies to make the field of Iranian crude," he said, adding that tensions still justify the risk premium on prices because of the potential for escalation."