OPEC member states seek to make $ 60 a barrel



2017/04/18 (00:01 PM) - Number of readings: 134 - Number (3905)


Some of OPEC's top oil producers, including Saudi Arabia, Iraq and Kuwait, are trying to make the price of the barrel $ 60, which they consider appropriate, pointing out that they will support further reductions in production next month.

OPEC officials, according to the Wall Street Journal, said that Saudi Arabia, Iraq and Kuwait believe that the average price of $ 60 a barrel would improve their economy and allow the introduction of more investment in energy.

Those countries were seeking to reach the price of $ 55 a barrel, a level they achieved significantly through a reduction of production by 1.2 million barrels per day, which was agreed upon by an OPEC decision.

Officials said Saudi Arabia, Iraq and other members of the 13-member group had said they would push for an extension of production cuts for another six months at their next meeting in Vienna on May 25.

"Iraq wants oil prices to reach $ 60 a barrel," Iraqi Oil Minister Jabbar al-Luaibi said in an interview with Wall Street.

Other officials, familiar with the policies of Saudi Arabia and Kuwait, said the two countries also wanted oil prices to reach $ 60 a barrel.

The price of OPEC members' oil at certain times is symbolic, given the unpredictable fluctuations in market movements that affect world oil prices, which vary from Chinese demand for oil equipment to Libya's processing facilities and developments in well-drilling technology in America.

But the price that Opec members seek to reach provides a window on how serious they are to use a weapon to reduce their production capacity to influence the market. It seems that all OPEC members are now more willing to implement the cut-off agreement than they were in previous years, so almost everyone has cut its oil production rates.
Other OPEC members, including Iran, may completely change plans to reach $ 60 a barrel. But Saudi Arabia, Kuwait and Iraq are members whose oil production accounts for more than half of OPEC's total output.

عن About: The Wall Street Journal

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