Specialists: Slowdown in Iraq's performance by implementing the OPEC agreement

Specialists: Slowdown in Iraq's performance by implementing the OPEC agreement



2017/07/31 11:11


Oil analysts and oil experts expected crude prices to continue their gains this week, after concluding last week on a more confident atmosphere in a market that led to the highest price levels in two months and prices recorded the highest weekly gain over the year exceeded 8 per cent.

The experts considered that the decline of oil stocks in a significant tangible gave the largest support for prices and boost confidence in the plan, "OPEC" to restore balance in the market, especially after Saudi Arabia to reduce oil exports by about one million barrels per day and the increase of the compliance of producers to the agreement to cut production applied since the beginning of this year, which extends To March next year with the possibility of extending it for a new period.

The influential producers' meetings follow the success of the St. Petersburg meeting last week, where a technical committee from OPEC countries and outside is scheduled to meet in Abu Dhabi on August 7 and 8 to give fresh impetus to the commitment to cut output.

A new meeting of ministers of the member states of the committee to monitor the production cut-off agreement is scheduled for next September.

In a related context, the State of Equatorial Guinea, the newest member of the Organization of Petroleum Exporting Countries, praised the efforts of the international organization to help stabilize the world oil market despite the current challenges faced by the oil industry in different countries of the world.

Equatorial Guinea said OPEC's successful policies have made many countries seek to win membership, citing its full support for OPEC's mission to lead the market towards overcoming difficulties and pushing the market towards stability and sustainable growth.

This came in an OPEC report on the results of Secretary General Mohamed Barkindo's visit to Equatorial Guinea and successful and successful talks with President Teodoro Mbasogo, Prime Minister Francisco Pascual, and Minister of Energy, Industry and Mines Gabriel Lima.

He stressed that OPEC will continue its mission in the service of Member States and the interests of the industry and the international economy, urging all Member States to remain united and continue to meet to defend common interests.

Barkindo, who visited Guinea for the first time, said he briefed the leaders on developments in the agreement that brought together OPEC countries and a number of independent producers, as well as the latest results of joint cooperation revealed after the meeting of the committee to monitor the cut-off agreement in the Russian city of St. Petersburg last week.

"OPEC has moved immediately to contain some of the slackness observed in the performance of some producers towards the reduction of production so the meeting of St. Petersburg came to raise pressure on producers to maintain a high level of compliance," said Steven Schimmel, director of German company VG Industri. So that the agreement remains effective and strong.

The compliance rate for production cuts reached more than 100 per cent a few months after the agreement, but eventually fell to 78 per cent due to a slowdown in the performance of Iraq and Ecuador, as well as the large increase in the production of Libya and Nigeria.

He pointed out that prices are poised for further gains in the coming weeks due to significant progress in the process of withdrawing from stocks and treatment of accumulated surplus above the average in five years and the reduction of Saudi exports and the slowdown of the growth of US drilling will combine these factors in favor of recovery of prices.

Rene Tsvenpol, director of energy in the Netherlands, said the future of crude oil is promising as it will continue to play a key role in the global energy mix despite efforts to shift to renewable energy and gas.

According to Goldman Sachs' forecasts, demand for crude oil will grow by about 1.2 percent annually, and this is a good rate, which will complement the efforts to reduce production and push the market towards recovery and balance. Are still stronger than those betting on lower prices below $ 40 a barrel.

The broad economic growth in India's emerging economies will lead to a peak in demand for crude oil by 2030 and will be the main driver of demand for crude oil after the expansion of reliance on it and increase investments in this vital sector of the world's energy system .

Luis Del Barrio, an analyst at Boston Financial Group in Spain, said the important step Saudi Arabia had taken to limit its oil exports by 6.6 million barrels per day by a massive cut of around 1 million barrels per day would accelerate market recovery and prompt other producers to take other strong measures to make it a success. Agreement to reduce production and increase confidence in co-producers.

He pointed out that the recent decline of oil reserves by about 90 million barrels is the result of the vision adopted by OPEC to deal with the challenges and difficulties that have overcome the market in the past period, stressing that the need to continue efforts with additional measures to accelerate the return of stocks to normal levels At the mid-level in five years.

He said that OPEC has a good vision of market developments as it seeks to make productivity cuts that exceed the increases coming from US production so that US producers can not dispel the impact of OPEC cuts, noting that the restriction of production in Nigeria is an effective step and will help to increase the effectiveness of reducing Production.

In terms of prices at the end of last week, oil prices rose to a two-month high and the two benchmark crude oil futures recorded their biggest weekly gains this year as investors continued to absorb signs of oversupply.

The US government said crude and gasoline stocks in the United States fell sharply above expectations last week.

The average crude refining in the US refineries was about 17.3 million barrels per day last week, an increase of 620 thousand barrels per day for the same week in 2016.

Saudi Arabia, the world's top oil exporter, said it would cut further output in August. Brent crude futures closed the session's highest close to $ 1.03 or 2.00 percent at $ 52.52 a barrel, Earlier in the session, the highest level in two months at $ 52.68.

US benchmark WTI futures rose 67 cents, or 1.37 percent, to settle at $ 49.71 a barrel, after hitting a two-month high of $ 49.78.

Crude oil futures rose more than 1 percent during the US session as the US dollar index fell and stabilized near its lowest level since June 23, ) From the previous year 2016 according to the inverse relationship between them following the developments and economic data that followed last Friday about the US economy.

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