• 30% oil gains since the agreement cut production, the highest level in 27 months


    ​           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.

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