Indicators agree to extend the reduction of oil production

Indicators agree to extend the reduction of oil production



06/05/2017 0:00

From within {OPEC} and outside the
capitals / follow - up to the morning
moving visions to agree all of the "OPEC", Russia and other countries to extend production cut another six months in the next "OPEC" meeting in Vienna , scheduled to be held in May , the current 25 to discuss the issue of the extension agreement.
In this regard , the Saudi delegate said the Organization of the Petroleum Exporting Countries "OPEC" Adib blind on Friday that there is a consensus to take shape
between the members of the organization and independent producers participating in the Global Compact to reduce crude production about the need to extend the agreement after June to get rid of oversupply. He added blind "There is a consensus developed between the participating countries (in the agreement) on the need to extend the production agreement , which was reached last year." He continued , "Based on today 's data, there is a growing conviction that the extension for a period of six months may be necessary to restore balance to the market, but the extension period is not yet confirmed."
According to experts , it has no choice "OPEC" only reduction commitment at this stage , which would maintain the balance in the global market.
In this context , Reuters last April was quoted by the International Energy Agency that global oil demand is finally approaching oversubscribed after nearly three years of surplus production, despite the growth of the glut in the market.
The agency said: The oil stocks in the countries of "Economic Cooperation and Development ( OECD ) " fell 17.2 million barrels last March, noting that over the first three months of the year rose stocks 38.5 million barrels , or 425 thousand
barrels per day after a significant increase in January . The International Energy Agency said that the total stocks of OECD countries and development
fell 8.1 million barrels in February to 3.055 billion barrels, at a
time when the demand exceeded supply by about 200 thousand barrels per day
in the period between January
and March.
But stocks remain higher than the average of five years by 330 million barrels, which is an important indicator.
Experts believe that the "OPEC" cuts and producers outside, which coincides with the approach of the summer season or increased travel cars and high demand for gasoline or oil , especially in the United States necessarily mean that the return of the balance of the market will bear fruit the end of this year.
US analysts hope that prices oscillating between $ 55 to $ 60 a barrel over the next few months.
As a final note about the rise
and fall of US stocks. Numbers change from one week to another and from one month to another and its impact on prices remains limited , no more than 1 to 2 percent , so you should not exaggerate its impact in the markets, as well as the impact of speculation remains slight and remains the price depends on supply and demand and geopolitical factors basics.

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