• Oil is up 8% in November and going for the third biggest monthly gain


            Oil prices rose to a two year high last week at the end of last week, with reports that OPEC and Russia have finalized a deal to extend and expand oil production cuts by the end of next year.
    "There is a state of agreement between Riyadh and Moscow on the need to announce an additional period of reductions at the upcoming producers' meeting in Vienna on Nov. 30, although the two sides are still studying critical details," the World Oil report said, Close and involved in recent talks.
    The report pointed to a rise in prices by more than 8 percent during the month, where prices are heading to record the third monthly gain in a row, the longest series of gains since May of last year.
    The report highlighted the confirmation of Russian Energy Minister Alexander Novak that all oil producers support the expansion of the deal to reach its final goals, and that Russia also strongly supports these proposals.
    The report said it was easy to pass the decision to extend OPEC's production cut-off agreement regardless of the presence of some countries opposed to it because of its economic crisis, but it is clear that the world's largest oil producers are determined to end the supply.
    The report warned that a lack of agreement on continued market intervention by reducing supply could cause oil prices to drop immediately with any gains made last year in a relatively excluded situation - a halt to the cut production agreement.
    According to the report, the world's top oil and gas exporters find in co-operation and co-ordination an urgent need for a better future for the industry, with the aim of maintaining the market in a state of sustained growth and growing profitability. Everyone is aware that achieving these goals of prosperity will only be achieved through Through fruitful cooperation deals, in particular the extension of the work of production cuts.
    "We are in intensive consultations with all our colleagues around the world within and outside OPEC and we can not make statements at this stage until we conclude the upcoming producers' meeting in Vienna on Thursday," the report highlighted. Next, but we confirm that we are on the right path. "
    The report noted that Al Faleh's statements and all the current political and economic conditions indicate that there is a green light for extension. He pointed out that the record high oil prices at the end of last week due, in part, to the closure of the Keystone pipeline in Canada for the second week in a row, Canadian crude is shipped to the United States.
    The Canadian oil crisis is expected to continue its role in boosting prices following the migration of international oil companies from Canada amid the high cost of producing oil sands, which threatens the direction of supplies to decline significantly. "Despite these negative indicators of the Canadian production of sand oil, the International Energy Agency expects Canadian production to jump by 900 thousand barrels per day by 2022, the production of more than five million barrels per day due to technology and efficiency in existing fields "Pointing out that the issue of pipelines and leakage problems will remain a problem for the Canadian oil sands industry.
    BP has confirmed that six of the major players in the crude oil market and in the energy system in general.
    The report, prepared by Bernard Loney, director of upstream projects at the company under the title "Exploration and Exploration Strategies to Achieve Success with Low Oil Prices", suggests that these six forces lead to a storm of radical change in industry. Around the world, which is expected to exceed 9 billion by 2040.
    "The second of these forces is the growth of the global economy, which is also accelerating, and is expected to achieve stronger levels in the coming years," the report said, noting that there is a state of reassurance in return of the abundance of energy as the world has what covers the needs of half a century of oil and gas given To proven reserves alone.
    The report noted that the third of these powers is that the crude oil industry is currently facing the stage of the climate challenge, where there are many actions being taken to address climate change and therefore must work to slow the growth of carbon emissions in order to achieve the goals agreed by governments to protect the environment This requires stronger policies to promote lower carbon emissions options.
    The fourth power is the rise of renewable energy and we expect its role in the global energy mix to grow by more than 7 percent a year over the next two decades, compared to just over 0.5 percent for oil and 1.5 percent for gas. Some energy-producing countries are as fortunate as Brazil, which has a large base of hydroelectric power, the report said, adding that the fifth force is that governments are formulating policies to reduce carbon emissions and promote alternative forms of energy.
    The sixth and final power, according to the BP report, is what some call the "Fourth Industrial Revolution", which means the integration of the digital and physical worlds with the use of software to monitor and organize physical elements, noting that this latter force is the power of balance, Because it can help us change the way we work and at the same time enable us to increase energy efficiency and keep pace with demand growth.

© All Rights Reserved for Asharqia Chamber