Oil prices below the level of ambition after reducing production

Oil prices below the level of ambition after reducing production



06/04/2017 0:00

Capitals / follow - up to the morning
pulling the ropes is still going on between the Organization of the Petroleum Exporting Countries (OPEC) and other oil countries outside the Organization on the one hand and the global market , including indicators, as well as shale oil production on the other.
As crude oil prices have seen a sharp decline in nearly two years, down from $ 120 a barrel mid - 2014 to around $ 30 in early
2016. In order to restore prices to rise reached an agreement to cut production between the (OPEC) and 11 other countries of the major oil - producing countries , including Russia, in late last November to cut total oil production by about 1.8 million barrels per day during the first half of 2017 from the beginning of January, and until next June. The price of oil agreement has not worked until today, according to observers, did not reach the stage of raising oil prices to levels that protect economies from the deficit and declining revenues. The ambitions of the rising price of oil to between 65 to 70 dollars per barrel , according to international financial institutions and investment estimates, the global market winds have not been as covet ships oil -producing countries. This, despite the commitment of countries to cut oil production over the past two months, reaching commitment ratio, according to reports (OPEC), to more than 106 percent for the OIC Member States, and 94 percent in general. While a number of officials announced the extension of tipping the oil agreement until after June, we saw the market volatility of oil prices before the oil agreement and beyond, even today. Reasons for curbing multiple oil rise, as the war continues to stifle productive activity in a number of countries, while the decline in growth in Asia directly affects the operations of import and thus drag oil supply. The shale oil, it is still in its upward trend, benefiting from prices that did not even know today any significant heights, and pumped into the US market , which is one of the most oil - importing countries, and increases the stocks that affect the current prices as well as expected. The Ministerial Committee of the Joint Ministerial Committee of the Organization of Petroleum Exporting Countries were (OPEC) producers and non - members recommended during its recent meeting in Kuwait recently, the extension of the global agreement to cut oil production for an additional six months. It is scheduled to be discussed to extend the period of production cut by the OPEC oil producers in the presence of non - members in the meetings of Vienna on the twenty - fifth of May next.


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