November 28, 2022

Dubai Week

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OPEC + demonstrates increased productivity and is ready for immediate change

OPEC + demonstrates increased productivity and is ready for immediate change

The Group of Petroleum Exporting Countries and its allies agreed, OPEC PlusToday, Thursday, after the announcement of the 1% result to reduce oil prices to 400,000 barrels per day, will advance with a planned increase in oil production next January.

He said he has kept his meeting open to follow the developments of the epidemic and make the necessary changes immediately.

It was also decided that the next meeting would be on the fourth of January.

Sources had earlier said that the trend at the meeting was to adhere to the current oil production plan ahead of the ministerial meeting of the oil exporting countries and their allies and the ministerial monitoring meeting.

OPEC and its allies are at odds with the United States, which has asked the group to boost production in support of the global economy, but producing nations say they do not want to prevent a weak recovery in the energy sector with new oversupply.

Global oil markets are expected to have a surplus of 3 million barrels per day in the first quarter of this year, and will reach 4.8 million barrels per day, according to the Organization for Petroleum Exporting Countries. Poor conditions for oil demand growth.

“In these turbulent times, we, the non-OPEC countries … need to be vigilant and take the lead in our approach,” said Diamantino Pedro Azevedo, Angola’s energy minister, who is chairing the current OPEC summit. Initial speech at the meeting of the organization on Wednesday, in accordance with the requirements of market conditions.

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Ahead of this week’s meeting, Russia and Saudi Arabia, two of OPEC +’s largest producers, said the group did not need to take a reactive action to adjust production policy. Iraq said OPEC + is expected to extend its current production policy in the short term.

Oil prices fell after the OPEC Plus announced a 2% close after gaining less than 1% at the start of trading today, but soon fell to 1%.

Brent crude futures fell 1% to $ 68.15 a barrel after falling 0.5% in the previous session.

US West Texas Intermediate crude futures fell 1.13% to $ 64.83 a barrel.

For his part, Iraqi Oil Minister Ihsan Abdul-Jabbar said on Wednesday that the recent drop in crude oil prices was due to fears of a World Health Organization technical recommendation regarding the new corona virus “Omigron” strain.

Yusuf Al-Shammari, CEO of Sea Markets, said that although the planned increase last month was 400,000 barrels per day, according to a recent study by manufacturers, the increase in the market was 220,000 barrels per day. There were some issues with production.

Regarding the US withdrawal from its oil stocks, al-Shamari said in an interview with Al-Arabia before the OPEC Plus results were released that it was not possible to withdraw from the stock unless the oil price was less than $ 80 a barrel. United States.

He explained that the United States could not withdraw from storage for more than 3 months because it would be detrimental to its energy security.

He pointed out that the only solution was to increase current US oil production.

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