The expectations of the renewal of the extension cut oil production

The expectations of the renewal of the extension cut oil production

 

5/27/2017 0:00

At the next meeting of {OPEC} on 30 November
Vienna / follow - up to the morning
at a time in which it decided "OPEC" and independent producers Russia leads them to extend oil production cuts nine months to March 2018, Saudi Oil Minister Khaled Al- Faleh revealed that the reductions could be extended again when OPEC meets independent producers in Vienna on 30 November.
By 0708 GMT , Friday, futures increased global crude measurement of Brent 0.37 cents , or the equivalent of 0.7 percent from the previous closing price , recouping a little of the losses suffered on Thursday.
The futures rose for WTI US median 16 cents from the previous closing price to $ 49.15 to remain sitting below $ 50 a barrel despite the rally on Friday.
OPEC produces a third of the world 's oil and is based on reduced production of 1.2 million barrels per day to October levels , amounting to about 31 million barrels per day , with the exception of Nigeria and Libya. According to Saudi Oil Minister Khaled Al- Faleh said due to the continued exemption of Nigeria and Libya organic OPEC cuts as unrest continues to inhibit their production, adding that the reductions could be extended again when OPEC meets independent producers in Vienna on 30 November.
The OPEC cuts helped oil prices back above $ 50 a barrel this year gave a financial boost to the producers who depend a lot of them rely too heavily on energy revenues have been forced to withdraw from foreign exchange reserves to fill gaps in their budgets.
And encouraged the rise in prices this year to increase the production of oil shale in the United States is involved in the production agreement to curb the restoration of equilibrium in the market for global crude inventories remain near record highs. The OPEC agreed in December on the first cut production in ten years and the first joint cuts with 11 independent producers led by Russia in 15 years, as the two sides agreed to cut production about 1.8 million barrels per day in the first half of 2017, equivalent to two percent of world production , with the October 2016 decision as a month reference cuts.
Despite production cuts, OPEC kept stable exports largely in the first half of this year , with the feet of producers on the sale of stocks.
Said Gary Ross , in charge of oil affairs on the PIRA Energy of Standard & Poor 's Global Platts "Russia has an imminent election and before the inclusion of Saudi Aramco 's shares next year, and then they would take the reality in. Any steps to support oil prices . "
The target of OPEC to reduce stocks from a record high of three billion barrels to the level of five - year average of 2.7 billion barrels.
Ryan said Seaton of the Committee on Railways in Texas , which regulates the work of the huge oil sector in Texas , told Reuters : "Low OPEC oil in the market will improve the opportunity for US energy to meet the needs around the world and will help us to achieve dominance in the energy sector."

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