Tuesday, July 7, 2020

OPEC’s annulment of April meeting raises uncertainty in global oil markets

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Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com He can be reached at: [email protected]

After the recommendation of the ministerial committee to follow up the agreement, “OPEC Plus” to cancel the meeting of the alliance scheduled to be held in April next, during the thirteenth meeting of the Joint Ministerial Committee to monitor the agreement to reduce production between the Organization of Petroleum Exporting Countries (OPEC), and major producers from outside, The decision of the countries participating in the agreement during its meeting in June to discuss the extension of the reduced production limit agreed upon by OPEC and outside countries.

“The agreement of the Organization of Petroleum Exporting Countries (OPEC) and a number of non-member producing countries, including Russia, last December to reduce production supplies by 1.2 million barrels per day from January to June, This Saudi-Russian agreement to reduce production, as well as the Venezuelan sanctions imposed by Venezuela and the internal conflict of politics of Venezuela, led to internal conflict to forget the oil produced by Venezuela and the impact of the economy and were therefore in favor of the policies of “OPEC Plus” to reduce the supply of the Comprehension of knowledge Od was reduced Venezuela’s oil production by about 250 million barrels per day, and thus oil markets witnessed a decline in the supply of about 1.4 million barrels per day.

Analysts and experts added that the oil markets witnessed during the past period were in favor of OPEC policies in order to absorb the oil supply gap and that it is in the public interest in the agenda of the OPEC meetings. Therefore, the cancellation of the OPEC meeting in April, To the price of oil until its scheduled meeting next June and thus obscure in the ceiling of rising prices until June.

The experts pointed out that the extension of the OPEC production reduction agreement for another period is continuing and there are many circumstances that serve the policies of the Organization of OPEC during the coming period pointing out that last week the price of a barrel of oil increased significantly by a limited percentage of cents, pointing out that the price of a barrel of oil Continuing to climb as expected to reach the price of a barrel of oil next June to about $ 72 a barrel.

Analysts said that the cancellation of the OPEC meeting for April raises many doubts and stimulate the policy of the global economies on long-term contracts that nationalize the budgets of these countries for futures contracts, adding that OPEC meetings rely on more than 21 reports, which help and depend on the “OPEC” by 65% in taking price policy from 6 months to one year.

Saudi Energy Minister Khalid al-Falih said he was confident that oil producers in the Organization of the Petroleum Exporting Countries (OPEC) and partners from outside would reach full compliance with the cuts, but would exceed them in the coming weeks, pointing out that the levels of oil stocks and investments are the main factors that guide the movements of the group Producers, and estimates of the oil sector show the need for investments of $ 11 trillion over the next two decades to meet demand growth for crude.

The meeting of OPEC Plus in Azerbaijan to monitor the agreement to reduce the supply of crude, saying: they will go beyond their commitments in the coming months and the meeting was canceled in April, pending the meeting of June.

 

Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com He can be reached at: [email protected]

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