{OPEC} is seeking to extend the reduction of production for nine months

{OPEC} is seeking to extend the reduction of production for nine months



5/14/2017 0:00

Capitals / follow - up Shokran Fatlawi
revealed leaks from sources in the "OPEC" and the oil sector that the organization and producers from outside studying the extension of the reduction of global crude production for nine months or more agreement to avoid an increase in production could hurt prices in the first quarter of next year, the time is expected to be demand is weak in it.
He said oil analyst "Neil Atkinson" during the "Platts" conference in London, that the current agreement between more than 20 products president succeeded in addressing the glut of global supply that kept prices under pressure in recent years, pointing out that it becomes more obvious that cuts "OPEC" aims to transform the market from surplus to deficit , which is beginning to happen now
, but slowly.
Leaks sequence from late last month revealed that the Member States in the (OPEC) , including Gulf states , head of discussing whether there is a need to extend the cuts for a period of nine months or more to allow more time to restore balance to the market, a source close to the talks revealed that the discussions came to an extension cuts until the end of the first quarter of 2018,
and that the reason behind expectations about lower demand for oil , up from the usual seasonal reasons, especially with the end of winter, pointing out that the increase in production in the coming months will reflect negatively on the prices that suffer from instability - according to site "Elaf" -.
Oil prices rose slightly in the settlement where enhanced hopes for the possibility of reducing the oversupply of crude in world markets with low US stocks and the growing support for the continued supply cuts led by the "OPEC", as were the futures settlement of the crude global measurement Brent to rise by seven cents to to $ 50.84 a barrel while US light crude rose one cent to $ 47.84 a barrel at the end of the week.
On the same oriented US production of oil rose more than ten percent since mid - 2016 to more than 9.3 million barrels per day, near the levels of production of Russia and Saudi Arabia, the two largest producers
, according to data published by Baker Hughes on Friday, US companies increased the number of oil rigs for the seventh week ten respectively by nine excavators to 712 platform.
Observers expect that the "OPEC" to extend - and perhaps also to deepen the cut levels Alorteurh- curb production agreement in cooperation with some independent producers, so when they meet in the twenty - fifth of this month, and believes that such a move will contribute to the largest deficit in the second half of the year .

http://www.alsabaah.iq/ArticleShow.aspx?ID=136991