OPEC and independent they reach to the first oil agreement since 2001
12/11/2016
8:43 •
[Where - Follow - up]
reach oil producers within the Organization of Petroleum Exporting Countries [OPEC] and beyond on Saturday to the first joint agreement since 2001 to restrict crude production and ease the oversupply in the market after the continuing low prices for more than two years which form of pressure on budgets many countries and triggered unrest in some of them.
With the signing of the agreement finally after nearly a year of deliberations within OPEC and doubts about the readiness of Russia -gar User organization - to cooperate market focus now turns to abide by the agreement.
Russia is expected to be implemented -alta not fulfilled 15 years ago with promises to reduce production along with real Oopk- in production this time reduced. But analysts are wondering whether a lot of other producers from outside OPEC are trying to provide the natural decline in production as a contribution to them in the agreement .
He said the Saudi Energy Minister Khalid al - Falih told reporters after the meeting that the agreement enhances cooperation in the long term, described the agreement as historic
He said Russian Energy Minister Alexander Novak at the same press conference , today's agreement will accelerate the stability of the oil market and reduce volatility and attract new investment
OPEC agreed last week to cut output by 1.2 million bpd from January , and the volume of the contribution of Saudi Arabia at the reduction of 486 thousand barrels per day.
And independent producers agreed on Saturday to cut production by 558 thousand barrels per day , slightly less than the size that was targeted initially amounting to 600 thousand barrels per day , but remains the largest contribution from non - members of OPEC at all. Novak said that Russia 's contribution to this reduction will be 300 thousand barrels per day. He added that the reduction will be gradual and that by the end of March , Russia will decrease the production of 200 thousand barrels per day from their levels in October 2016, which amounted to 11.247 million barrels, the highest production to Russia , according to estimates yet.
Novak said that Russia 's production will drop to 10.947 million barrels per day after six months .
Said Gary Ross , a veteran observer of OPEC and founder of PIRA Energy Consulting "all of whom have the highest prices and the commitment tends to be well in the early stages. But then with the continued high prices erode compliance."
Said Amartya Sen of Energy Advisory Aspkedz Compared to the past two Balchehrin when expectations were quickly diminishing in reaching an agreement , this is a major shift . Skeptics will argue about the commitment but can not be underestimated Avatar in itself."
Ross added that the OPEC target price of oil at $ 60 a barrel because any price above that could encourage competitors on production .
Two years of pain
and crude prices plunged to less than half in the last two years after a significant increase in the production of Saudi Arabia in an attempt to dislodge the Mrtfie - cost producers such as shale American oil companies from the market.
It was like falling oil prices below $ 50 a barrel without -oohaana 30 Dolara- from the high levels reached $ 115 in mid - 2014 that helped to limit the growth of shale oil production.
But it also hurts revenues dependent on oil economies, including Saudi Arabia and Russia , forcing the two major crude source to start first talks for cooperation in the oil for 15 years .
It collapsed in April to try to reach agreement at a meeting in Doha.
Novak said that the talks between OPEC and non - member States of the Organization saved thanks to the views and new ideas to the new Saudi oil minister Khalid al - Falih
Apart from Russia attended the talks on Saturday , a number of independent producers or made comments or pledges menu included Azerbaijan, Bahrain, Bolivia, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan and South Sudan.
He said Russian Energy Minister Novak said OPEC and other non - member states that attended are responsible for 55 percent of global production meeting Member States. And it will represent the common reduced by about 1.8 million barrels per day , equivalent to about 2 percent of global oil supplies.
And facing many countries that are not members of OPEC , such as Mexico and Azerbaijan natural decline in oil production and through some analysts expressed skepticism that such natural declines will fall within a reduced production .
And Oman said it would cut production at a rate of 45 thousand barrels per day, while Kazakhstan has said it will try to cut production at a rate of 20 thousand barrels per day next year.
And Saudi Arabia have notified its customers in Europe and the United States on Friday it would cut oil supplies as of January , in a sign that it has already started to implement a production cut plan .
And notified Kuwait, Iraq and the UAE also Khamanm buyer plans to reduce supplies https://www.alliraqnews.com/modules/news/article.php?storyid=54384