«Al-iqtisadia» from Riyadh and Osama Suleiman from Vienna
Observers believe that the file of the US-China trade negotiations and the slowing of progress in its effects on geopolitical factors, and expectations for the approach of producers in the "OPEC" and outside of the decision to extend the current cuts longer, will remain overwhelming next year. With the uncertainty over whether the United States and China can reach a partial trade deal, deepening concerns about global economic growth rates and the outlook for global oil demand, this was more than enough to overshadow news of a likely extension of global trade cuts. Brent crude futures fell 42 cents, or 0.7 percent, to $ 63.55 a barrel. US West Texas Intermediate (WTI) crude was down $ 58.14 a barrel, according to Reuters. "The main factor in oil demand forecasts is the ongoing US-China trade negotiations," said Michael McCarthy, chief market strategist at CMC Markets and Brokerage in Sydney. Oil is approaching the highest trading ranges, which it has recently recorded is not It is surprising to see some selling pressures during the sessions. ”Prices touched their highest levels since late September after sources said the Organization of the Petroleum Exporting Countries (OPEC) and Russia were likely to extend existing production cuts for another three months until mid-2020 when they meet on December 5th.
Furthermore, the Organization of Petroleum Exporting Countries "OPEC" confirmed that the Organization and Russia at the forefront of an unprecedented era of international cooperation in the field of energy, pointing out that this new era began three years ago after the global oil market experienced one of the worst recessions in history, and that between 2014 and 2016, where inventories stood at inflated of 5.5 million barrels per day, surpassing the oil demand growth of 4.1 million barrels per day.
A recent report of the Organization-about meeting Mohammed Barkindo Secretary-General of the Association Austrian Russian VIENNA that by July 2016 increased trading volume in commercial stocks of the Organization for Economic Cooperation and Development to a record level of about 403 million barrels above the industry average in five years, what It led to a dramatic decline in the price of "OPEC" basket of reference, which fell 80 percent between June 2014 and January (January) 2016.
OPEC pointed out that this situation has made the oil industry in a deep crisis, after about half a million people lost their jobs and has been frozen or postponed investments estimated at one trillion dollars, and declared a record number of companies bankruptcy.
According to the report, "OPEC" has realized that the scale of the crisis requires urgent and coordinated response by all stakeholders in the industry to help reduce the huge inventory of crude and restore balance to the oil market, and immediately began a series of consultations between the "OPEC" and other producers, which began The results come on December 10, 2016 with the signing of a declaration of cooperation between OPEC member states and ten independent countries led by Russia, considering that this proactive stance actually saved an industry that entered a downward spiral, which helped restore confidence not only in the oil market But the global economy in 2017 and 2018.
For the past three years, over relations continued between the "OPEC" and Russia to flourish and reach new stages throughout the implementation phase of the declaration of cooperation, Russia has been one of the major shareholders as co-chair of the Oversight Committee Joint Ministerial along with Saudi Arabia.
He pointed out that there must be recognition of the fundamental role of the absolute, played by Russian President Vladimir Putin, who was one of the most prominent defenders of this endeavor, referring to Moscow's pledge to provide ongoing support for the benefit of producers and consumers, and show continued appreciation to all participating countries for their commitment and contribution to the achievement of sustainable stability in world oil markets.
The report stated that the Charter also provides a valuable mechanism to meet the challenges that await the industry and many of which are beyond the control of today's producers, explaining that the oil market is facing, for example, a challenge because of a group of non-core factors such as geopolitical factors, natural disasters and trade disputes advanced monetary policies.
He noted that this innovative and comprehensive framework will also enable the long-term use of oil as a key element in the ever-changing global energy mix while enhancing energy efficiency across the value chain and helping to improve oil environmental credentials.
The report state that the Charter is a kind of voluntary and open commitment to all producing countries, pointing out that the invitation is open to all oil-producing countries to join this international campaign to promote stability and prosperity around the world.
The report noted that the framework of the other important cooperation is the high-level between the "OPEC" and Russia, which will hold its seventh meeting in the first 2020 half, annual dialogue, pointing out that the origins of the initiative back to December 26 (December 2005), stressing the importance of the existence of an ongoing process of dialogue between the parties.
He pointed to the importance of having platforms that provide an ongoing forum for exchanging ideas on oil market developments and other areas of common interest, including energy policies, investment in upstream and downstream projects, data flows and multilateral issues. Energy includes the European Union, China, India, the United States, the International Energy Forum, the International Energy Agency, the International Monetary Fund, the World Bank and the G20, as well as with the private sector and energy-related companies.
In another matter, the US energy companies reduced the number of oil rigs operating for the fifth consecutive week, the number of rigs fell 24 percent on an annual basis with the producers to cut spending on new drilling operations.
In its closely watched weekly report, Baker Hughes Energy Services said drilling companies had stopped operating three oil rigs in the week ending November 22, bringing the total number of active rigs in the United States to 671, the lowest level since April 2017, and in the same week a year ago, there were 885 oil rigs running.
The decline in the number of active oil rigs in America, which is a primary indicator of production in the future, for the month of 11 respectively with independent companies for exploration and production cuts spending on new drilling operations while focusing more on increasing profits amid lower energy prices.
Despite the decline in the number of rigs, the US oil production continues to rise, partly due to increased productivity to record levels in most oil shale basins in the United States.
