The Organisation of Petroleum Exporting Countries (OPEC) has agreed on increased oil production. From July, members of oil industry and or leading oil-producing countries such as Russia will expand production by around one million barrels per day or by one percent of global demand. This was decided by participating States during ir meeting in Vienna and y want to stop increase in oil price of past months.
Important OPEC customers, such as US, China and India, are not enough. Investors and shareholders also expected a significantly higher production. As a result, US oil increased by 3.5 percent to now 67.80 dollars, while price of North Sea petroleum strain Brent rose by around two percent to just under 75 dollars.
The statements made by Suhail al-Masruei, Energy Minister of United Arab Emirates, also provided scepticism. He indicated that it was difficult for some of producing countries to increase funding, which is why it is unclear wher production will actually rise as much as decided. "The decision is challenging for countries that are struggling to maintain ir production levels," said Al-Masruei with a view to US sanctions against Iran as well as domestic political crisis in Venezuela.
According to experts, flow rate is expected to be below one million barrels. The global demand would not be satisfied, which is why price will remain high in future. The decision of cartel, according to Reuters analysts, is above all a compromise between core countries such as Saudi Arabia, on one hand, and cooperating states such as Venezuela and Iran on or.
The 14 OPEC states now want to consult with ten non-OPEC states to formally adopt common line this Saturday. As non-OPEC countries are currently producing less oil than y are likely to have with regard to common funding limit, an expansion will also be negotiated here.Updated Date: 23 June 2018, 12:02