Smooth the way for the stability of the oil market

Smooth the way for the stability of the oil market



07/04/2017 0:00

Adnan Kanani is
witnessing the world economy in these days a state of anxiety and panic to the continued decline in oil prices, coinciding with the decline in demand, and an abundance of supply, these conditions , which controls the world contributed to the decline in global market indices, following a drop in Brent crude prices since the beginning of this year , which It amounted to less than $ 50 a barrel, Maani , down more than 20 percent rate compared to previous months.
It seems oil prices fell to below $ percent a barrel since a year and a half, puzzling market experts with a lot of speculation about the reasons for the decline and the extent of its continuity in the extent of the relationship between oil and political crises perspective, is linked to oil close relationship a long time ago with crises and conflicts and
political.
Remarkably , in the global oil market, cooperation and flexibility between the Organization of Petroleum Exporting Countries "OPEC" producers and producers outside the Square are the dominant communications and meetings and meetings between the parties
concerned.
This atmosphere provided a great smoothness in making decisions not only affect them; it is concerned with the whole world. Note that some countries tried to jump on the understandings, but that did not last long; on the contrary, non - cooperating countries have become part of the framework of cooperation
year.
From here, it can be seen that the trends aimed at the global oil market stability when acceptable to all levels, moving forward away from any disturbances or excesses; it also brought about a real oil arena, although the market is still unstable, or a difference of at least remain at the border where the producers do not want a whole.
Some ministers "OPEC" announced that it and independents are committed to reducing stocks to an average of five years, comes supported by the general atmosphere mentioned, especially the large stocks caused great confusion to the process of re - oil market stability, within a logical price acceptable to producers and consumers to limit
both.
This means that the coming period will witness the disposal of these stocks operations, which could adversely affect the price of oil, but it is part of the overall process to reach global status of oil more sustainable and stable, and more just as well, especially for producers who have lost so much as a result of the massive collapse of world oil prices before about three
years.
Agreement is to cut production, directly contributes to helping to reduce the levels of oil stocks and the visit of the Saudi energy minister during the month of May 2017 to interview Prime Minister Haider al - Abadi comes in this framework.
This agreement , which is historically for "OPEC" and producing countries outside, capable of extension for the third time when it expires next March.
The truth is that all those concerned by the expressed willingness to continue the movement in accordance with the current mechanism, since they already need to raise crude prices to ensure that its revenues reduce the size of the deficit in their budgets, especially those that rely on oil as a major source "but a single" her.
From here to be the convergence of mechanisms to reduce production while reducing inventories and returned to what it was five years ago mechanisms agreement, the stage will not be a swing in oil prices at the current borders, at least for the remainder of this year , months it is the stage of construction in this area, and must to go through such stages.
There is no doubt that the next stage will be less tension on the oil level, thanks to the current understandings and flexibility between the parties concerned.
This pays to what he described as " the establishment of a " new system of "OPEC" and producing countries outside its main goal is not to raise oil prices at the moment, but build a solid base where the price goes up automatically. Can not be built like this rule without this cooperation is very important, especially with the disappearance of sounds "cacophony" from some quarters , including those affiliated with the "OPEC"
itself.
It does not matter that the oil 10 or 20 percent , prices are rising at the present time, it is important to rise in a timely and appropriate level as well, but more importantly , the elevations are sustainable.
Disposal of existing stocks represents a qualitative leap in terms of stability and photorealistic market is also restored. With the continuation of the agreement to cut production, the market will reach the stage where the wishes of
everyone.

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