OPEC and countries outside the group achieved the first global agreement since 2001 to cut oil production – AméricaEconomía.com

Vienna. The OPEC and other oil-producing nations outside of the group, including Russia and Mexico, achieved this Saturday his first global agreement since 2001 to cut the pumping of crude oil in joint and relieve the excess supply that has kept prices low in the barrel for the last two years.

The deal was sealed finally after almost a year of discussions within the Organization of the Petroleum Exporting Countries (OPEC) and of distrust in the willingness of Russia to abide by the covenant. Now, the market’s attention will focus on the compliance of the treatment.

in Addition to Russia, in talks Saturday participated Mexico, Bolivia, Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Malaysia, Kazakhstan, South sudan, Sudan, and Oman, all countries that do not belong to OPEC.

Venezuela, which is itself a member of OPEC, said that Mexico would contribute to a global agreement with a low offer of up to 150,000 bpd.

on Saturday, the producers outside of OPEC agreed to cut its production in 558.000 bpd, below the initial target of the previously announced, although of all ways is the greatest contribution of these nations in history.

OPEC has a long history of non-compliance of the quotas of crude oil production. The fact that Nigeria and Libya are exempted from the agreement due to their low supplies in the middle of internal conflicts means that there is a greater pressure on the cartel leader, Saudi Arabia, to assume a good part of the decline in pumping.

The minister of Energy of Russia, Alexander Novak, stated that his country would cut crude oil production from the levels of October of this year, that came to 11,247 million barrels of oil per day (bpd). To march 31, 2017, the reduction of supplies from Moscow will mean a total of 200,000 bpd, he announced.

Saudi Arabia, meanwhile, argued that it could be willing to reduce their pumping to below the threshold of 10 million bpd. The minister of Energy of the kingdom, Khalid al-Falih, said that his country is willing to negotiate an extension of the global pact, which enters into force on the 1 of January, after the first six months of implementation.

“This agreement consolidates and prepares us for a long-term cooperation,” said Falih to journalists after the meeting, an event which he described as “historic”.

The OPEC meeting began with other producers, with the expectation that compromise cuts of 600,000 barrels per day (bpd), which added 1.2 million bpd of supply to the countries of the group already agreed to reduce.

on Saturday, the producers outside of OPEC agreed to cut its production in 558.000 bpd, below the initial target of the previously announced, although of all ways is the greatest contribution of these nations in history. Of that figure, Russia agreed to lower its offer of 300,000 bpd.