Organization of Petroleum Exporting Countries (OPEC) estimated that the recent fall in oil prices is temporary and reported that informal negotiations organize a conference in Algiers on 26 and 28 September.
“the expectation of higher demand for crude oil in the third and fourth quarters of 2016, coupled with a decrease in availability is leading analysts to infer that the current bear market is only temporary and that oil prices would rise during the latter part of 2016, “the agency said in a statement on the website group Mohammed Al Sada.
last week, oil prices fell in a bear market, ending a recovery that drove up prices nearly doubled from a low in 12 years in February.
The renewed drop keeps pressure on many member countries have yet to balance s, Qatar’s energy minister currently holds the rotating presidency of the OPEP.us budgets. The OPEC ministers met for the last time in June when they rejected a proposal to accept a new production ceiling, subject to a production policy without restrictions.
The statements of Al Sada, Minister of Energy Qatar currently holds the presidency of OPEC, indicate that the group is concerned about falling prices and would consider action if the market does not stabilize at a higher level, according to Robin Mills, head of l a consulting firm Qamar Energy.
“If we are going to talk about something worthwhile announce to the market, should be an idea as that previously proposed to freeze production oil, “Mills said by telephone from Dubai. “I give a lot of credit for that to occur, but could be in better condition than before agreeing to a freeze by year end.”
Oil West Texas Intermediate advanced to its highest level in almost two weeks, rising 2.94 percent to $ 43.03 a barrel. In London, Brent traded at $ 45.30 a barrel after falling 14 percent in July.
At current oil prices, Russia sees no need to resume the discussion on a freeze oil production, but leaves open the possibility for the future, he told reporters the Energy Minister Alexander Novak in Moscow Monday.
Novak did not rule out talking to their counterparts in the Member States of OPEC at the summit of the International Energy Forum in Algiers which will take place on September 26-28.
Russia Saudi Arabia and other major oil exporters met in Doha in April in an attempt to stabilize world markets putting limits on production. The initiative failed when Saudi Arabia demanded that his rival Iran was part of the agreement. At that time, Iran had ruled out any kind of limit to their production both increased after the lifting of hospitalizations sanctions.
It is likely that Iran will raise production to previous levels to sanctions end of the year , while Saudi Arabia ta lso be selling more oil when it drops local fuel consumption in the country during the summer months, Mills said.
Iran is extracting around 3.8 million barrels of oil a day, of which exports about 2 million, said in an interview in Tehran last month Mohsen Ghamsari, director of international affairs of National Iranian Oil Co . That allowed him to return up to 80 percent of the market share it had before the restrictions, he said.
This latest drop in prices will not last, said Al Sada. The recent fall in prices reflects margins weaker refining, a surplus of refined products, in addition to the vote in the UK in favor of leaving the European Union and its impact on financial markets, according to a statement attributed to Al Sada.
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