Saudi Arabia, Russia, Venezuela and Qatar in Doha on Tuesday agreed to freeze its oil production to “stabilize” prices, but the announcement did not have major impact on markets, which had expected cuts.
the initiative plans to maintain production levels in January levels, is also conditional on other major producers to join it.
“in order to stabilize oil markets, the four countries agreed to freeze production to its January level, as long as the other major producers to do the same,” he told reporters Qatari Oil Minister Mohammed Saleh al Sada.
the initiative was proposed to “stabilize the market, in the interests not only of producers and exporters of crude oil, but also the world economy,” he said.
the OPEC and those who are not members of the cartel (such as Russia) will be held “intensive” contacts to implement the agreement, Saleh said.
the Saudi minister Ali al-Nuaimi said the agreement was ” the beginning of a process “that will assess in the coming months” to decide whether further action is needed to stabilize the market. “
” we do not want prices fluctuate significantly. We do not want to cut the supply. We want to meet the demand and stabilize prices, “said Al Nuaimi
-. Little impact –
The announcement caused a minor increase in crude oil prices and did more dent on the stock, which for months living partly battered by uncertainties related to the collapse of oil prices.
at about 11h24 GMT, a barrel of Brent (crude reference in Europe) for delivery in April traded at $ 33.89 a barrel, 50 cents higher than at the close on Monday. in the Intercontinental Exchange (ICE) in London, a barrel of light sweet crude “(WTI) for March rose 41 cents, to 29, $ 85.
“it is not appropriate to exaggerate the impact of this decision,” he told AFP Dembik Christopher, an analyst at Saxo Banque, noting that other major industry players such as the US, are not included in the agreement.
But “above all it is a freeze on production and not a cut,” so it will be “insufficient to absorb the continuing oversupply in the market.” “It’s probably a surge in prices in the short term but in the medium term, prices are expected to remain very low,” he said.
The price of oil fell 47% in 2015 over the previous year and more than 70% compared to June 2014, reaching quoted this year below $ 30.
the fall is largely due to the strategy of OPEC (Organization of Petroleum Exporting Countries ), and in particular Saudi Arabia to flood the market to knock out the producers of oil and gas from shale in the United States. It is also explained by the slowdown in China, he occupied the role of engine of the global economy
-. Rounds of contact –
Minister Qatari indicated that it would initiate contacts with others OPEC (Organization of Petroleum Exporting Countries). The Venezuelan minister, Eulogio del Pino, said he already had a meeting scheduled for Wednesday with ministers of Iran and Iraq.
The pressure on prices was accentuated by the return of Iran to the market after the end of sanctions imposed by the West on Tehran over its nuclear program.
the Qatari minister said Tuesday’s meeting was “a success” and stressed that the price collapse harmed supply long term, affecting investments.
the conclave was held in a context of tensions over the war in Syria, where Russian military support to the regime of Bashar al-Assad, while the Saudis support to insurgent groups
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