04/11/2017
The Saudi-led oil cut agreement in November 2016, with the
participation of 21 countries including non-OPEC countries, succeeded in
driving prices up, recording the highest levels in two years and three
months, or 27 months.
Brent
crude oil prices jumped 30 percent since the announcement of the
agreement at the end of November 2016 to early November, to a record
high of $ 61.7 per barrel, while prices before the agreement reached $
47.32 Per barrel.
According to the analysis, oil prices recorded gains of 127 per cent
from the lowest level recorded after the collapse of prices, as oil
prices at the time of about 27.10 dollars a barrel in January of last
year 2016.
Oil
recorded gains for the second consecutive month in October and
November, while prices have not fallen below $ 44 since the agreement
until the writing of this report, and it is expected that non falling
prices below this level comes to the huge support that the market
receives from the producers production until the end of next year 2018.
The
commitment to implementing the production reduction agreement was high,
with the commitment rate for OPEC countries at about 97 per cent for
September and about 95 per cent for August, while the commitment of
non OPEC countries was higher during the same period, About 119 per cent for September and about 117 per cent for August, according to Bloomberg data.
Several international reports have pointed to a decline in the level
of world oil reserves, although it is still above the average of about
170 million barrels, compared to stock of 318 million barrels earlier in
the year.
OPEC is scheduled to meet at the ministerial level on November 30 in
Vienna to review market developments and decide on a global agreement
until late 2018. World Oil report, which confirmed earlier that
Saudi Arabia, the largest oil producer in OPEC made pioneering
efforts and influential in achieving the balance of the oil market, and
continues to play this pivotal role, which led to a lot of recovery of
prices and And then support the budgets of producing countries widely.
The report pointed that the need to reduce public spending is more
pressing in OPEC countries, pointing to the importance of good progress
in the process of reducing production in order to reduce the global
chaos in the oil market.
The
report said that the market receives broad support in the current phase
of the efforts of OPEC and its allies to remedy the disadvantages and
points of imbalance in the market, pointing out that the commitment to
the current strategy successful next year, will lead to a lot of
progress and positive results, especially with regard to treatment of
excess supply and excess Supplies.
