Monday, 21 November, the world prices for oil continue to grow, according to the auction. Rates are going up because investors expect that the OPEC countries and outside the organization States will conclude the agreement on the limitation of the production levels of “black gold”.
As of 13:27 Moscow time the price of January futures for North sea petroleum mix of mark Brent has grown on 1,56% – to 47.59 USD per barrel, the Agency “Prime”. The price of January futures on WTI increased by 1.64% – to 47.12 per barrel.
In September, the OPEC countries for energy summit in Algiers announced a preliminary agreement to cut oil production to a level of 32.5-33 million barrels per day. To cut production needs as part of the deal Saudi Arabia, Iraq and UAE. The organization expects the measures to stabilize the market and will join a number of other oil-producing countries – first of all, Russia. However, agreement on specific limits for each of the member States of OPEC yet.
Earlier on Monday, Russian President Vladimir Putin said that he considers the high probability of freezing of oil production by OPEC countries and that Russia is ready to freeze oil production at current levels. “Oil rises more than 1% on expectations of Vladimir Putin, the deal in production will be achieved at the end of this month,” said a market strategist at OANDA crane Erlam.
OPEC on the weekend tried to work out ways of overcoming differences before the meeting of the cartel on November 30 in Vienna. Last Saturday the Minister of oil of Iran Bijan Zanganeh said that there is a high probability of agreement at the upcoming meeting, reports RIA “Novosti”. In turn, the Minister of oil of Iraq Jabar al-Laibi said Sunday that Baghdad will be offered at the meeting, three new proposals to reduce oil production. “Our alternatives are based on other variables, and we will make the decision easier OPEC”, – promised the head of Department.
Meanwhile, some experts point out that apart from vague statements about oil production decline did not say anything, writes The Wall Street Journal. In London Barclays bank believe that OPEC in anticipation of the meeting in Vienna faced with a difficult decision, because none of the options agreement is not a special benefit to the cartel. “We still hope that OPEC will agree on saving her reputation statement. She will present the agreement, with flexibility, without deviating too much from the course that the country planned originally,” – said in comments to analysts.
Earlier the main stumbling block for reaching an agreement on quota levels, was the reluctance of Iraq and Iran to participate in production cuts. In addition, Baghdad and Tehran did not agree with the estimates that should be used as a starting point for the calculation of future quotas.