Opec agrees to reduce its oil production to stimulate rise in prices – Portfolio.co

The Organization of the Petroleum Exporting Countries (OPEC) succeeded in this Wednesday, after intense negotiations an agreement to cut crude oil production for the first time in eight years and boost the prices higher.

The cartel will reduce production by 1.2 million barrels per day (mbd) up to a total of 32 mbd, indicated the organization in Vienna after intense negotiations that resulted in a high volatility of prices in the last few hours.

Read: The 2017 will mark the reborn oil

The agreement also includes countries that are not part of the organization, such as Russia, that already announced a cut in production of 300,000 barrels diairos (bd).

The OPEC was looking for months for an agreement to tackle the fall in crude prices, now less than $ 50 a barrel when two years ago still reached 100.

Read: Utilities Ecopetrol reached 229 billion in the third quarter

Following the announcement, Brent for delivery in January went up almost four dollars, surpassing 50 for the first time in a month. For its part, the barrel of WTI is trading at 49,21 dollars (+us$ 3.98).

THE CONTRIBUTION OF RUSSIA AND OTHER…

Russia and other producers of crude oil non-OPEC members will join the production cut from the organization removing from the market an additional 600,000 barrels a day (bd).

So said today the president of turn of the Organization of Petroleum Exporting Countries (OPEC), Mohamed Bin Saleh al-Sada, at a press conference in Vienna.

Read: The dark landscape in oil prices

“I have the pleasure to inform you that Russia has promised to reduce to 300,000 bd”, said also minister of Energy of Qatar following the end of the 171 ministerial conference of the
OPEC.

The clipping of the world’s supply of crude oil shall be initialled at a meeting on 9 December in Doha -though he said that could be considered other cities – and added as 1.8 million barrels a day.

OPEC agreed today in Vienna to reduce their production of crude oil up to 32.5 million barrels per day (mbd) from 1 January 2017. “Many countries (producers do not
OPEC) are willing to cut and 600,000 barrels we believe that it is more realistic. Russia will assume a reduction of 300,000 barrels per day,” said the minister qatar.

“As you know Russia has supported our position. Their position was to freeze the production but said that they were committed to do more than that”, he added.

Read: oil Production in Colombia reached 846 thousand barrels per day of oil

For his part, the minister venezuelan Oil, Eulogio del Pino, also highlighted the cooperation between the OPEC and other major producers from outside the group. “Russia announced (a cut) to 300,000 barrels per day. We hope all the countries do not
opec 600,000 barrels per day. It will be signed next week, on the 9th day,” said the responsible of venezuela. “What countries are not Opec will participate in the meeting? Russia, Kazakhstan, Uzbekistan, Kazakhstan, Oman. we will Invite some Latin american countries like Mexico, Bolivia, Trinidad, and Colombia,”, he advanced to The Pine about the meeting next week.