In Vienna on 30 November, held an official meeting of the Organization of countries-exporters of oil (OPEC) to discuss the question of limiting the level of oil production. In the morning the Ministers of the countries members of the organization held an informal meeting at the hotel Park Hyatt Vienna, reports Reuters.
Prior to the event, the delegates expressed optimistic forecasts. “The agreement will be signed”, – said the representative of Iraq. “I am optimistic”, – said the Minister of oil of Iran Bijan Zanganeh, noting that while Iran has received no requests about production cutbacks.
Later, the Agency Bloomberg with reference to one of the delegates said that the morning talks ended inconclusively. Representatives of OPEC countries have not reached final agreement on the questions about production cuts.
Official meeting at the headquarters of OPEC began at 12:00 Moscow time. OPEC closer the positions, discusses the fair division of a decline in oil production between the two countries, told journalists the Minister of energy of Saudi Arabia Khalid al-falih.
According to al-falikha, OPEC is discussing production cuts of up to 32.5 million barrels per day, excluding Libya and Nigeria. The Minister of energy of Venezuela, Eulochio del Pino said that the agreement, whatever it is, will be removed in Iran, while Iraq is expected to decrease production.
For starters, OPEC is planning to freeze the production for a period of six months, and will continue to watch the market’s reaction, told reporters before the meeting, said the Minister of oil of Iran Bijan Zanganeh.
OPEC also expects that countries that are not members of OPEC will participate in the agreement on production cuts, said al-falih. According to him, OPEC expects that these countries will cut production by 600 thousand barrels per day.
Also waiting for OPEC’s reduction of oil production from the Russian Federation. The Ministry of energy announced that it will announce its position only after the final decision of OPEC. Earlier, Moscow stated that in the case of adoption of the decision by organization of production cuts Russia is ready to go for the freezing production. Taking into account the plans to increase production of the companies, for Russia, this means a reduction of production by 200-300 thousand barrels. However, freezing Moscow production at the current level of organization is not satisfied, said Wednesday the Saudi Minister.
The agreement, OPEC will raise the price of oil to $ 60
If a positive OPEC decision on production optimization of oil the price of oil may rise from five to seven dollars and fast enough to reach the level of 60 dollars per barrel, said oil Minister of Venezuela, Eulochio del Pino.
The Minister of oil of Iran Bijan Namdar Zanganeh also expects the price of oil above $ 50 per barrel, based on market factors. “The oil price depends on the market, not OPEC or Iran. The market says the price will be higher than 50 (dollars) per barrel,” he said, adding that it will be “above 60″.
According to al-falikha, the failure of the transaction will not be a tragedy. “The probability of no agreement, I’m not worried,” said the Saudi Minister (quoted by “Interfax”). According to him, no limit on the oil market will recover more slowly, but “will not collapse”, reports TASS.
At the same time, the failure of negotiations may result in a sharp decline in oil prices up to $ 35 per barrel, Reuters quoted the opinion of some analysts, including Morgan Stanley and Macquarie.
Russian President Vladimir Putin in September this year, said that the current oil price on the world market is beneficial for Russia, however, is unfair. In opinion of experts, Russia to leave on the balanced budget required an increase in average oil prices to $ 69 per barrel.
On the eve of the summit of OPEC oil prices fell sharply by 4%. However, on 30 November, prices again went up, jumped more than 5% amid growing optimism about the possibility of reaching an agreement by the countries of cartel.
The cost of the futures on Brent crude for delivery in February 2017 in the course of trading on the ICE exchange in London grew by 5.8% – to 50.1 per barrel. As notes TASS, in recent times the price of this oil was well above $ 50 per barrel on October 31. Against the background of growth of oil quotations of the dollar on the Moscow stock exchange dropped 0.51% to 64.78 rubles, the Euro by 0.54% to 68,94 rubles.