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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Economist reveals reasons for OPEC quotas' decreased effectiveness in controlling prices

    Rocky
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    Economist reveals reasons for OPEC quotas' decreased effectiveness in controlling prices Empty Economist reveals reasons for OPEC quotas' decreased effectiveness in controlling prices

    Post by Rocky Sat 14 Sep 2024, 4:36 am

    Economist reveals reasons for OPEC quotas' decreased effectiveness in controlling prices
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    Baghdad Today - Baghdad
    Economic expert Nabil Al-Marsoumi confirmed today, Saturday (September 14, 2024), that the system adopted by OPEC since 1986 to determine production quotas for its members has become less effective in maintaining certain oil prices, pointing to the necessity of adopting a new system to determine OPEC countries’ export quotas.
    Al-Marsoumi said in a post on the Facebook platform, followed by Baghdad Today, that "the system adopted by OPEC since 1986, which is to determine production quotas for each OPEC country, has become less effective in maintaining certain oil prices due to the members' lack of full commitment to their production quotas (exports + local consumption) and the difficulty of monitoring local consumption in each country."
    He added, "With the increase in heat in the summer, many OPEC countries use oil to generate more electricity, to operate air conditioners. Under the current voluntary cuts, production will continue at the same rates, but domestic consumption will decrease, so there will be a surplus, and traders in the market look at this surplus, which means that their exports will increase."
     He continued, "What always matters to the world is exports, not production, and then these exports will contribute to reducing oil prices. Therefore, it has become necessary to abandon the production quota system and adopt a new system based on determining export quotas for each country according to certain indicators, the most important of which are the available production capacities and proven reserves in all OPEC Plus member states."
    The Organization of the Petroleum Exporting Countries (OPEC) confirmed in a statement, Thursday (September 5, 2024), that 8 countries in the OPEC+ alliance agreed to extend voluntary production cuts for two months until the end of November.
    The countries are Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and the Sultanate of Oman.
    The statement said: “In confirmation of this renewed and firm commitment by the member states, the eight countries agreed to extend the additional voluntary production cuts of 2.2 million barrels per day for two months until the end of November 2024, after which the voluntary reductions will be gradually restored, on a monthly basis, starting from December 1, 2024, according to the attached schedule, with the possibility of stopping or reversing these adjustments as necessary.”
    Countries whose production exceeded the agreed level confirmed their commitment to compensate for all excess production quantities by September 2025.
    OPEC oil output fell in August to its lowest since January, a Reuters survey showed, as disruptions to Libyan supplies compounded the impact of ongoing voluntary supply cuts by other members of the group and the wider OPEC+ alliance.
    The survey showed that the Organization of the Petroleum Exporting Countries (OPEC) pumped 26.36 million barrels per day last month, down 340,000 barrels per day from July.
    Lower exports and production in Libya amid a dispute between political factions over control of the central bank have helped boost oil prices, and sources say that has increased the chances that OPEC+ will go ahead with a planned production increase from October.
    The survey found that Libya accounted for the largest supply loss last month, at 290,000 barrels per day. The survey showed that production was disrupted at the Sharara field early in the month and at more fields towards the end of it, reducing production to an average of 900,000 barrels per day.
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