Oil producers are intensifying their consultations to restore balance to the market
The producers of the Organization of Petroleum Exporting Countries (OPEC) and their Russian-led partners are intensifying their consultations a few days before a series of high-level ministerial meetings of 25 countries will be held at FAO headquarters in the Austrian capital Vienna from the 5th to the 7th of next month.
This comes at a time when the oil market is experiencing one of the most difficult price declines, with Brent crude losing 11 percent and US crude falling by 10 percent over the past week only, while the market is betting on large and impressive cuts involving all producers, Rise, thereby contributing to narrowing the gap between supply and demand.
The upcoming meetings include the meeting of the ministerial monitoring committee to monitor production on December 5, followed by the ministerial meeting of the OPEC countries, and the next and final meeting of ministers of OPEC and independents in which a new strategic partnership is expected among the 25 producers.
Traders in the market are betting on production cuts ranging from one million to 1.5 million barrels a day to counter the oversupply caused by the rise in US production to record levels of more than 11 million barrels a day, which coincided with the granting of exemptions for eight countries to continue to buy Iranian oil despite US sanctions.
In a related context, the Organization of Petroleum Exporting Countries (OPEC) confirmed that the previous successes of producers, especially the joint declaration two years ago did not prevent the recurrence of difficulties and challenges that loom the horizon of the industry currently, pointing to the Secretary General of the Organization, Mohamed Barkindo, "as we learned repeatedly Through history, the oil market is cyclical and durable and one must always be prepared for the unknown. "
In its latest report on the occasion of the closing of the thirteenth high-level meeting of the energy dialogue between OPEC and the European Union held in the Belgian capital Brussels, the Organization said that for 2019, we are expected to see a growing probability of imbalance in the market, Significant growth expected in supply.
"As always, OPEC will remain vigilant in monitoring the market over the coming weeks and months to keep abreast of the latest developments," the report said.