Wednesday , May 18 2022

OPEC envisages reduction of oil production – fear of production in 2019


Oman Oil Minister Mohammed bin Hamad Al-Rumi said in an interview with The Wall Street Journal that in 2019, there will be too much oil in the market as the OPEC oil market surveillance ministers meet. The meeting took place in Abu Dhabi on Sunday.

Oman is not part of the Organization of Petroleum Exporting Countries (OPEC), but participates in the decisions of the organization for production regulation.

Planned abbreviations allow avoiding a sharp decline in prices for oil products in 15 countries of the OPEC, primarily in the Middle East.

Saudi Arabia and other oil exporting countries this weekend in Abu Dhabi. Oil production up to 1 mln. The issue of reducing barrels was discussed. A decision will be taken at the ministerial meeting of the OPEC on December 6 in Vienna. Saudi Arabia should be prepared to take half of this cut; 500 thousand barrels.

Russian doubts

Russian Petroleum Minister Alexander Novak said in an interview with CNBC on Sunday that no urgent decisions should be taken.

"The market can make a quick decision on the reduction of production and reduction of production," he said.

He did not deny that Russia, which is not a member of the OPEC, can not participate in industrial reductions in December.

Saudi Oil Minister Halid al-Falah said that it is too early to speak of the end of the December ministerial meeting, but the OPEC does not need to resolve this issue.

At the geopolitical level, US sanctions against Iran make it difficult for the oil market. In addition, substantial increase in oil production in the United States.

The volatile decline of the North Sea oil

The North Sea oil barrel was sold at $ 85 per spot in the middle of October and was lower than $ 70 per barrel, but sold for $ 70.94. This means a 20 per cent reduction in price in less than a month.

It can be read on the stock prices at oil companies. During the period, Equinor (former Statoil) dropped 7.4 percent, Aker BP, with its dominant owner Kjell Inge Røkke, dropped to 21.9 percent. According to Finansvision, this is a $ 30 billion monthly payment for Aker BP paper.

The daily quoted oil stock exchanges released last month.

According to Finansvision, companies serving oil companies have lowered oil prices. For example, the seismic company of Petroleum Geo Services decreased by 34.1%. A third of the value was deleted.

No, EcoFius did not have a Christmas gift

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