Continued to extend production cut expectatio

Continued to extend production cut expectations



5/23/2017 0:00

Capitals / follow - up Shokran Fatlawi
reported expectations reinforced by reports that the reduction of the supply - led "OPEC" to Aaijeri extend beyond only 2017, but increased to reduce the supply in the global market and raise Alosar.ochhd prices rose thanks to the extension of the reduction of the agreed production between the "OPEC" other producers expectations by 1.8 million barrels per day to March 2018, rather than just the first half of this year., while the value of futures contracts for Brent crude on Monday rose to 32 cents, equivalent to 0.6 percent from the previous close, to $ 53.93 a barrel.
The expected research unit at Bank "of America Merrill Lynch" in a research note to her, three scenarios towards oil production operations, which included the first scenario, the reduction of production, as well as encourage non - member States by the reduction in larger quantities, while "Merrill Lynch" predicted the possibility the second increase production strongly, and that the oil price war back
again.
The third possibility , according to keep "OPEC" cuts at the current levels for 6 or 9 months ahead, hoping to improve demand oil market conditions.
The "Merrill Lynch" on the need to maintain the current discipline to cut production, expected that the current quotas for the most part remain.
She hoped to achieve a global improvement in the demand for oil, pointing out that it is the most likely course of action, stressing that the strongest demand in the next two years will certainly help to remove the global chaos.
The institution, to comply with the agreement to cut production levels in the EU stood at 96 percent in the past four months, confirming the "OPEC" commitment to reduce the
surplus.
The "OPEC" meeting on 30 November last ended with an agreement mandating reduction of daily production by about 1.2 million barrels per day.
The members decided to create a monitoring committee comprising Algeria, Kuwait and Venezuela, two of the participation of outside "OPEC" countries and chaired by Kuwait to monitor the implementation of this Agreement and compliance with and submit a report to the Conference
II.
Sources said: The deepening cut production option is also subject to debate such as "OPEC" meeting in Vienna and its allies scheduled on May the current 25.
It expects US Energy Information Administration "net oil exports" OPEC "revenues to $ 539 billion in 2017 compared with 2016" due to the rise in crude prices slightly and a slight increase in the production of the Organization.

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