Report: reducing oil production 2 percent raise prices

by **Rocky** Fri 04 Mar 2016, 3:37 am

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Report: reducing oil production 2 percent raise prices

by Rocky Fri 04 Mar 2016, 3:37 am

Report: reducing oil production 2 percent raise prices

3/3/2016 0:00

[rtl] CNBC
report showed center «Al - Shall Economic Studies» that the reduction of the world 's oil production by only 2 percent could lead to higher prices between 50 to 100 percent ,according to the speed in the absorption of the surplus, but the report counted that themarkets no longer believe the usefulness of the letters show of force to some countries produced, it does not seem aware of the importance and seriousness of the time factor on its future, Vtkalifa irreplaceable. The report said: "The continuation of the oil market this deteriorating level, does not only mean the loss of financial savings for a decade, and all of Russia and Saudi Arabia have lost $ 140 billion and $ 100 billion respectively so far, but strongly increases the vulnerability of internal social and political peace a real risk the difference between them until the worst happens, it is in time and not in theresult. " oil World report also pointed out that global oil production at the end ofDecember 2014, according to the prospectus , " OPEC "for the month of February amounted to about 93.44 million barrels a day, with the end of the month of December 2015 , amounted to about 95.61 million barrels per day, global production increased byabout 2.17 million barrels a day, the share of Iraq , the increase amounted to 692 thousand barrels per day, and the share of Russia , which amounted to 240 thousand barrels per day, and the share of Saudi Arabia which amounted to 457 thousand barrels per day, for a total of about 64 percent of all of the increase in production. The report noted that the market has responded positively to an agreement last Doha to freeze production, increased oil prices temporarily, but it soon landed and returned to the levels prior to the agreement, and it happened shortly after the analysis of the seriousness of the agreement and Jdoah.oroy report that the agreement will not lead to absorption witha surplus at the level of the production month of January 2016, "as long as there is asurplus, the result is a continuation of prices falling, could fall further, it began remarks suggest non - compliance freeze." cartel agreements , the report said: "because OPEC lost history of credibility among its members, rarely take the agreements seriously, so needed in the crises of 1986 and 1998 , to intervene and pressure US to ensure thecommitment of its members and some producers abroad. " according to the report , there are three positive factors must be taken into account: the first and most important is theRussians and the Venezuelans and Saudis sit at the negotiating table on the oil market, and the Russians and the Venezuelans to continue to agree with Iran and Iraq, in acomfortable indication that the likelihood of recurrence of sitting down and perhaps compatibility to absorb the excess supply has become more likely and also indicates thatcomfortable on the prospects fading of direct and indirect armed clashes also become the biggest possibility, and the two may support the oil prices in the future. The second is that the passage of 18 months on the oil market crisis, making them press their costs prohibitive to all producers, and without exception, and up to a three - nation credit rating in the Gulf , the week before last, an apparent nations filled financially, indicator ofthe speed and depth of the impact of the deterioration of the oil market under conditions including pay all producers to feel the darkness of their future. The third factor: it is in the dark shadows that the deterioration of the oil market began throwing on the future performance of the global economy, which has become all consuming countries facing risks, such as China and Japan in the East, and Europe and the United States in theWest, which united the claim to treat oil market conditions between efforts producers and consumers.[/rtl]

[rtl]http://www.alsabaah.iq/ArticleShow.aspx?ID=111621[/rtl]