due to the sharp decline in oil prices, global investment in the sector fell twice. This was stated by Minister of energy of Russia Alexander Novak, speaking at the meeting of Ministers of OPEC countries and countries outside the cartel. “The price collapse in 2014, when quotations fell by more than three times and reached a low point of $ 28 per barrel in January 2016, severely limited the investment attractiveness of the oil projects. Annual investment in the global oil sector fell almost two times”,— TASS quoted the statement of the Minister of energy of Russia.
Mr. Novak also noted that oil-producing States should not miss a chance to find balance in the oil market. “Failure to sign the agreement in Qatar gave us a serious lesson. I am sure that during today’s talks will give us to work out a solution and to resolve all disputes, if any,” said the Minister. He also stressed that oil-producing countries outside of OPEC can potentially reduce production by 600 thousand barrels a day, and without their efforts to balance the market will be difficult.
we will Remind, today in Vienna, the negotiations of member countries of the OPEC with the countries that are not included in the cartel. 30 November following the talks, OPEC for the first time in eight years, agreed to cut oil production at the maximum anticipated volume (to 1.17 million barrels to 32.5 million barrels per day), and also promised a further reduction of 0.6 million barrels a day from countries not members of the organization. In the end, the total reduction could reach 1.8 million barrels per day, significantly more than the current surplus on the market.
More info on the November OPEC summit, read in the material “Kommersant” “OPEC agreed to cut oil production to 32.5 ml of barrels per day”.
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