Friday , October 22 2021

OPEC + is not afraid of Trump pressure. Reduce the price of oil more than expected – Financial News | Sin Chew Daily



[ad_1]

After two days of intense negotiations in Vienna, the Allies, including the Organization of Petroleum Exporting Countries (OPEC) and Malaysia, finally came into a deadlock and reached an agreement to reduce production more than expected.

(New York, Vienna, 8.) After two days of intensive talks in Vienna, the Allies, including the Organization of Petroleum Exporting Countries (OPEC) and Malaysia, finally broke the deadlock and reached a larger-than-expected production reduction agreement. .

OPEC and its allies have decided to reduce the market supply scale by 1.2 million barrels per day, and the OPEC carries 800 thousand barrels. Iran was the winner of the talks, saying it was exempt from production cuts due to US sanctions.

Oil prices up 5.4%

After the news was published, the international oil price increased by 5.4%, and the deal became more likely to annoy US President Trump, which urged OPEC not to interrupt production to reduce oil prices.

Brent crude oil revenue closed yesterday at $ 61.67 / barrel, up $ 1.61, or 2.7%. At the beginning of the session, the contract fell below $ 60, and oil-producing countries were likely to maintain their production targets. Then, after the news about the deal cuts, the in-day value of the Brent crude futures traded rose to $ 63.73 and then returned to the session.

New York crude oil revenue reached $ 52.61 / barrel, down $ 1.12 or 2.2 percent to $ 54.22 a day.

New York crude oil prices increased by 3% week on week, and Brent crude oil prices increased by 4.8%. Since October, due to the increase in oil supply, global demand growth has weakened and crude oil prices have fallen by 30%.

The OPEC Secretariat held a series of bilateral meetings with non-OPEC countries before realizing this breakthrough as a vital mediator between Saudi Arabia and Iran. The power to reshape the global oil environment has brought increasing pressure on OPEC, which has provided unprecedented support for Russian support and fierce opposition from Trump.

The last agreement was unexpected, as the delegates stated that the previously discussed proposal was about 1 million barrels a day and that OPEC was responsible for 650,000 barrels per day.

Reconsideration in April next year

Oil-producing countries will use October production as the basis for production cuts and will re-evaluate the agreement in April next year.

The production cuts scale of Russia is still unknown. A representative said earlier that the country's reduction in initial production is between 100,000 and 150,000 barrels per day, but then it could accept that it is slightly higher than this.

Article source:

Sin Chew Daily / Financial /2018.12.08

[ad_2]
Source link