OPEC confirms near restoration of balance in world oil market

OPEC confirms near restoration of balance in world oil market

 


The Organization of the Petroleum Exporting Countries (OPEC) has said it has confidence in the restoration of equilibrium in the oil market with the help of all producers, both in OPEC and outside of the participants in the agreement to reduce production.

"Most of the positive effects have occurred in the market recently, thanks to progress in the implementation of the agreement to reduce production, notably the decline in the surplus of stocks by 90 million barrels compared with a surplus of the average in five years more than 300 million barrels in January 2017," OPEC said in its latest report.

The report quoted FAO Secretary-General Mohamed Barkindo as confirming that the current oil price cycle, which began in 2014, was one of the most aggressive in recent years, with a 80 per cent fall in prices, and the negative effects on both the market and the industry have been more extensive.

He pointed out that the ongoing cooperation between OPEC and non-OPEC countries is based on solid and solid basis. The cooperation witnessed positive developments in particular, with the commitment of all the producers to adjust the level of production and supplies since the beginning of this year and after signing a historic cooperation declaration in December last year .

The report described the extension of the production reduction agreement for another nine months until March 2018 as a deliberate step that was necessary to cope with some difficulties and challenges in the crude oil market. The meeting of the ministerial committee to monitor the production reduction agreement in the Russian city of Petersburg last month was very positive and effective, Many influential recommendations.

Prices were up 10% in the past, as US inventories of fuel and demand in the United States and China declined and there were signs of a continued and accelerating contraction in the supply-demand gap.

"OPEC is stepping up its efforts to control the increases in production in the past period, both from countries within the organization or by US production and countries outside the cut-off agreement," said Don Mackay, director of Singapore's VW LNG.

Robin Noble, the director of Auxera Financial Consulting, said US production still resisted market conditions and insisted on pumping at a rapid rate, exacerbating the supply gap. But Opec cuts are clearly more powerful and have already reduced stocks and caused Gradually to the gap between supply and demand.

"The price of $ 100 a barrel is once again out of reach, with most forecasts suggesting that oil prices will remain at medium levels," said Rudolf Huber, an energy researcher and director of a specialist site, referring to Goldman Sachs' No one needs a price of $ 100 a barrel and most producers are able to achieve good financial flows at $ 50 a barrel provided market stability and price levels.

US crude oil prices rose yesterday, up 1.7 percent, resuming gains from a 10-week high of $ 50.41 a barrel on the previous day, and Brent crude futures up 1.8 percent, the seventh gain in the last eight days , Driven by hopes of a return to balance to the market.


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