"Energy Agency": the extension of "OPEC" agreement deepens the oil market deficit

"Energy Agency": the extension of "OPEC" agreement deepens the oil market deficit



2017/05/13 | 10:21
(Encyclopedia of this Day News | Iraq News ) - Economy News Baghdad: The International Energy Agency official said the oil market again returned to witness a shortfall in supply, it is expected that the production level of demand exceeds more during the second half of this year, if OPEC agreed the extension of the agreement to reduce supplies.

Said senior oil analyst at the agency Neil Atkinson during the Platts conference in London, that the current agreement between more than 20 major producer has succeeded in addressing the global supply glut that kept prices under pressure in recent years.

He began it becomes more obvious that OPEC cuts aimed to turn the market from surplus to deficit , which is beginning to happen now, but slowly.

Observers expect that the OPEC to extend - and perhaps also to deepen the cut levels planned - curbing production agreement in cooperation with some independent producers, so when they meet in the twenty - fifth of the monthly current and sees «Watkinson» that such a move will contribute to the largest deficit in the second half of year.

For his part, chief commodity analyst said the «Goldman Sachs» «Jeff Corey» The potential imposed in the United States border tax would raise crude «Nymex» US prices aggressively, to be a cost of more than 30 compared to the price of oil in any other country.

He said «Korean» through «Platts» summit that crude «Nymex» will be trading higher by about $ 15 for crude «Brent», which makes pass this tax difficult, because it will result in a sharp increase in fuel and petroleum products prices in the United States.

He explained that the objective of the tax is to strengthen the dollar by about 25, to ease the burden on consumer prices, but oil commodity denominated in US currency all over the world, the matter will be different here, even if one spoke to Congress will find that they are aware of it completely.

It was to be the imposition of this interest will create more jobs and contribute to the expansion of the oil industry in the United States, but, for example , will oil prices within the country to $ 65 a barrel, while crude «Brent» at $ 50, and in the meantime there will be a huge influx of imports oil from abroad.

On the other hand, the Organization of Petroleum Exporting Countries «OPEC» reported that the level of production fell last month, despite the rise in some countries , including Saudi Arabia.

The organization said in its report for the month of April that the level of production last month fell by 20 thousand barrels per day to 31.73 million barrels, compared to 31.75 million barrels in March , the former for him.

The FAO data received from Saudi Arabia, Kuwait, Nigeria and the United Arab Emirates, reported an increase of its production last month.

The increased production of oil from Nigeria to 273.6 thousand barrels per day last month, also in Saudi Arabia increased by about 46.4 thousand barrels per day, and in the UAE rose by about 15 thousand barrels, and in Kuwait rose by 10 thousand barrels.

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