Oil production will be reduced by 1.7 million barrels per day – El Universal (Venezuela)

Vienna.- Following the agreement reached yesterday in Vienna, on the part of countries not members of the Organization of Petroleum Exporting Countries (OPEC), oil production will be reduced in 558.000 barrels per day from January.

This decrease is added to the agreement reached on 30 November by OPEC to reduce by 1.2 million barrels a day. In that sense, the global production will be shortened at the beginning of 2017 at 1.7 million barrels a day.

The minister of Petroleum and president of Petróleos de Venezuela (Pdvsa), Eulogio Del Pino, said through his twitter account @delpinoeulogio, the following: "We have come to a historic agreement between producers, OPEC and non-OPEC in the search of a fair price for the oil."

he Emphasized that the meeting was "attracted 25 countries OPEC and non-OPEC with a single ideal, to achieve stabilize the market and to defend a fair price of our product".

later referred to the official "thank you to the 11 countries producers, not OPEC which today (yesterday) is incorporated to the decision of the OPEC to retrieve the price of our oil."

In his opinion, this "historic agreement", endorsed by the signature of the countries attending, it will allow a balanced market. He said to Telesur that it is estimated that the basket of venezuelan crude oil is located between 50 and 60 dollars a barrel, and recalled that the average of this indicator in the year, stood at us $ 34.

During his intervention at the plenary, the Russian minister Alexander Novak, thanked Venezuela and Algeria for the efforts to achieve stability in prices, reported @Pdvsa.

Less supplies
despite the fact that the amount agreed to, 558.000 barrels a day, is less than the volume of 600,000 barrels per day, which is, in principle, OPEC was subject to the entry into force of a cutback of pumping from the group of 1.2 million barrels per day (mbd) and therefore would be expected in the markets, the delegate of an iraqi deemed it "a big deal".

Russia, the most important producer of this group of countries, not OPEC, had already announced last week that it would lower its offer of 300,000 barrels per day. To this is added now the clippings from Mexico, a country that makes a special effort since their production is already in decline, Kazakhstan, Malaysia, Oman, Azerbaijan, Bahrain, Equatorial Guinea, South Sudan, Sudan and Brunei.

The volume announced is in addition to the cut of 1.2 mbd to which they committed the thirteen members of OPEC in the 171 ministerial conference in November in Vienna. Thus, in total, the reduction of crude supplies, if realized, will be of 1.78 mbd, slightly less than 2 % of the world production.

This is more than the growth of world demand for oil that the experts of the OPEC have forecast for next year of 1.2 mbd. The objective of the measure is to raise oil prices by reducing the excess supply that has plunged since mid-2014.