After the announcement Wednesday evening on the informal decision of the OPEC on reduction of oil production Brent crude has risen by 5.92%, WTI – by 5.3%. On Thursday morning, prices are adjusted downwards, while market participants assess the real consequences of the transaction members of the cartel.
November futures for Brent crude on the London ICE Futures exchange to 8 o’clock Moscow time has lost 0.4% in value, dropping from 48.52 per barrel. Following the results of session on Wednesday the price of Brent crude jumped by 2.72 dollar (up 5.92%), to 48,69 per barrel, and in the course of trading it rose above $ 49 per barrel, reports “Interfax”.
Quotes of WTI oil futures for November in electronic trading on the new York Mercantile exchange (NYMEX) on Thursday fell by 0.1% – up to 47 per barrel. On the eve of the Texas rose in price by 2.38 dollar (5.3 percent), to of 47.05 per barrel.
On Wednesday OPEC’s informal meeting in Algiers, unexpectedly for the market and for themselves were able to agree on reducing oil production from the current of 33.24 million barrels per day to 32.5-33 million barrels per day. It happened contrary to analysts ‘ predictions and opinions of many experts.
Agreed to reduce oil production from the current of 33.24 million barrels per day to 32.5-33 million barrels per day. The exception, as stated by the Minister of energy of Saudi Arabia, Khaldi al-falih made to three countries: Iran, Libya and Nigeria are permitted to retain production at the “maximum reasonable levels.” The Minister of energy of Qatar, Mohammed bin Salah al-Sada noted that although the reduction of production and small, it will help to analyze the market.
Final, confirmed in writing agreements must be reached at the formal meeting of the cartel in November in Vienna. Then decisions will be made about the production quota of the OPEC countries and established a timetable for the reduction. OPEC plan to coordinate the size of the quota for each member of the cartel. This will be engaged in separately established Committee.