23/11/2017
"The
meeting yesterday was at a high technical level and aimed at
documenting the organization's data on the market situation from new
sources, including investors in financial markets in preparation for
presenting the latest market assessment to the ministers at their
expanded meeting," an OPEC source said, on the 30th of this month to make a right decision on extending the cuts.
The source added that the data focused on the status of US production
rival and the future effect on prices and balance of the market,
pointing that the various readings of the market agreed to put
promising and positive.
According to three sources from the OPEC, the Director of the Fund of
commodities prominent Andy Hall participated yesterday in an OPEC
workshop, which was devoted mostly to discuss the developments of rock
oil.
He was among the speakers who attended the workshop at the OPEC
headquarters in Vienna, where a number of OPEC officials, including FAO
Secretary General Mhamed Barkindo, met.
According to Reuters, the Organization of the Petroleum Exporting
Countries (OPEC), Russia and nine other producers from outside the
Organization are working to reduce oil production by 1.8 million barrels
per day until March in an effort to get rid of the oversupply of
supply.
The
sources said that "OPEC" heard the views of Hall, who was famous for
his evidence of high oil prices, on the prospects of the market. British born Hull has been trading oil contracts for more than three decades.
Saudi Arabia, OPEC's biggest crude producer, has called on oil
ministers to agree next week to extend the cartel's supply cuts for an
additional nine months as Riyadh seeks to get rid of the supply squeeze
that is pushing prices, sources said.
OPEC and its allies are due to meet on November 30 and are widely
expected to extend their agreement to cut output, which expires in March
2018.
Producers tend to extend for nine months but may delay a decision in
this regard until early next year with recent price increases.
Despite Russian President Vladimir Putin's comments on a nine-month
extension, Moscow is reluctant to announce its position, and Tass news
agency said oil producers and the Energy Ministry had discussed a
six-month extension.
Russian
Energy Minister Alexander Novak said on Monday that his country would
set its position later in November, while there was room to agree on a
six-month or even three-month extension, or that producers would
postpone the decision. This is less likely.
An OPEC source said there was a 90 per cent chance that it would be
announced in November for nine months, while two other OPEC sources
indicated that the nine month extension was more likely.
The supply agreement aims to reduce oil stocks in industrialized
countries to an average of five years, and the latest data indicate that
OPEC cut more than half the way in this direction.
An OPEC source said a nine-month extension was likely, as part of the
price increase was driven by factors such as anti-corruption campaign in
Saudi Arabia and tensions in Lebanon rather than growing supply
scarcity.
The
source said that if the rise in prices resulted from the decline of
recent geopolitical developments in the Middle East, the possibility of
extending the current agreement for a longer period will increase.
