The governments of Qatar, Saudi Arabia, Russia and Venezuela agreed on Tuesday to freeze oil production to their January levels, in order to stabilize oil prices in international markets, the meeting these four countries held in Doha.
Qatari Energy Minister and current President of the Organization of Petroleum Exporting countries (OPEC), Mohamed Saleh Al Sada, was in charge of announcing the deal, reached with his Russian counterpart Alexander Novak; Saudi holder of Petroleum and Mineral Resources Ali Al Naimi and Venezuelan responsible for that portfolio, Eulogio del Pino.
This measure, in the host view, “not only benefit producers and exporters of oil, but also to the global economy “, which has been shaken recently by falling oil prices to their lowest levels for twelve years due to oversupply in the market.
Al Sada expressed his hope that the other major producers, both members and non-OPEC, follow this example and to this end, announced that it will take “immediate” round of contacts and negotiations with countries such as Iran and Iraq.
he said that takes into account all the fundamental factors affecting the economy of the oil industry and the world, before taking this decision.
Meanwhile, Venezuela’s oil minister told Efe that he believes that other countries accept the measure adopted on Tuesday in Qatar, supported by two of the world’s largest producers of crude oil: Saudi Arabia and Russia.
According to Del Pino, Venezuela is very important for the market to stabilize and pay a “fair price” for oil to maintain the level of investment needed to sustain oil production.
“Venezuela has always been playing a role on behalf of the defense of fair price of oil,” said Del Pino at a press conference and announced tomorrow will meet with the ministers of Iraq and Iran in Tehran.
for its part, the Saudi owner of Petroleum and Mineral Resources said that the signed agreement for a potential freeze in production is “just the beginning of a process” and the first step of others that could be taken.
“we will assess in the coming months and decide whether to take further measures to stabilize and improve market “Al Naimi
he said.
said he and his partners do not want” big changes “in prices or reduce output, but to meet the demand in the market and be priced stable oil.
This stable price, according to Al Naimi is established by supply and demand.
the financial analyst Abdulrahim to Hor he told Efe that the agreement will affect the price of crude in the market and help stabilize it, but said that it will not increase because, he said, the impact of this measure is “more emotional than real”.
Al Hor recalled that last January as crude fell below 30 dollars a barrel. “To establish a fair price for oil, you need a deal between producers and customers, taking into account all factors and variations,” said the analyst.
A barrel of Brent, of reference in Europe, arrived Tuesday trading to $ 35.5 -a 6.3% to close at 08.00 Monday-morning and moderated rebound after the announcement from Doha.
Thus, at 11.45 in the morning trading at the intraday low of $ 33.68, 0.86% more than at the end of Monday’s session.
the director of the research Network Global energy British Warwick Business School, David Elmes, told Efe that the initiative of the four producers “is an interesting first step towards putting a ceiling on production”, but recalled that the level of January, “is still too high “.
According to the expert, the Doha initiative sends a positive message to investors, but” more measures will be needed “to restore market balance. For its part, Algeria returned on Tuesday to ask for a reduction of the production quota and stressed that it will continue trying to convince his colleagues of OPEC.
Algeria, like other producing countries whose economies depend primarily oil, they are being severely affected by the falling price of oil, which has depreciated about 75 percent excess supply in the market in the last year and a half.
EFE
No comments:
Post a Comment