Members of the Organization of Petroleum Exporting Countries (OPEC) in Vienna today to discuss production quotas. Experts doubt frankly that participants in the meeting can agree.
The meeting will be held in Vienna in nervous situation. “Oil king” sit down at the negotiating table for the first time after the lifting of sanctions with Iran and Saudi Arabia after the announcement of plans to reforms to “care” from oil dependence. The main intrigue: the growing contradictions within OPEC. Paradoxically, the split in the cartel has provoked rising oil prices. $ 50 – is quite comfortable for large and strong players, but is totally unacceptable for a number of other countries, including Venezuela, Iraq and Algeria. And, it seems, the parties to each other can not hear. OPEC leaders do not want to make any sudden movements and wait that prices will recover naturally. For this reason, experts do not expect serious progress in the negotiations on the frozen prey.
Especially that Riyadh saw the result of its strategy to increase production. .. In the US postponed and frozen many shale projects, and the debt burden of foreign companies grew by 30%
“I can not think of any OPEC meeting expectations which were so low, Iran has clearly expressed its position: it returns to dosanktsionnym levels, Saudi Arabia also gave very clear that about any freezing can be no question as to the agreement will not join Iran Therefore, I am here in Vienna, do not expect any flashy results, just regular meeting -. not more than order “, – said Robert McNally, head of the Rapidan Group consulting company
One and a half years ago, OPEC decided not to reduce oil production in order to maintain the price.. Today, all member countries of the Organization sees signs of recovery in the balance of the global market.
Since then, the prices dropped to the lowest level in 13 years, the price of a barrel of oil has risen to $ 50.
“Since last December there were no hard indication how much each country should produce. Theoretically, at a meeting of OPEC will be able to return to the introduction of production ceiling. However, given the acuteness of the relationship between the cartel countries, especially Iran and Saudi Arabia, I do not think it happen “- believes Nick Coleman, senior editor for news information on oil markets S & amp; p Global Platts
However, on the eve of a meeting of member countries of OPEC oil prices became cheaper.. The market is not expecting positive news from Vienna. Analysts believe that the meeting on Thursday will strengthen the transformation of the OPEC cartel of just a major player. After all, they have a large market share. But, despite the leveling status of the cartel can join the 14th member – Gabon. Then oil production cartel will increase by 240,000 barrels a day.
In addition, 2 June can choose a new head of OPEC. According to Reuters, they can become Muhammad Barkindo -. Representative of Nigeria
Earlier today it was reported that Saudi Arabia agreed to limit oil production. As the Wall Street Journal, on the eve of the OPEC summit to be held in Vienna on 2 June it was reported that Riyadh agrees to freeze, but only if the organization is to raise the bar up to a total of 32 million barrels per day. The publication notes that the change in policy will allow the Saudis to reassure the poorer members of the cartel, perturbed kingdom trick on April talks. But still it is necessary to find a compromise with one of the major players – Arab Emirates. They insist that their production cut Iran
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