Russia and Saudi Arabia, plan for oil production

9 years ago - Published in Commodities, Finance

Russia and Saudi Arabia have reached a consensus on the plan to freeze the oil production, even leaving aside the Iran Participation. This was stated by Russian news agency Interfax, which cited diplomatic sources, according to which there would new talks between the two countries in view of the Doha summit, the Sunday program.

The item has not found other confirmations. But the oil market – already oriented upward – gave her credit, by flying the barrel prices to almost five months maximum : Brent has gone up to $ 44.81 , WTI at $ 42.25 , surpassing in both cases an important technical resistance, represented by the moving average of the last 200 days. The two references ended the session up by more than 4%, despite the International Monetary Fund has again reduced its forecast on global growth, from + 3.4% to + 3.2%.

To further strengthen the optimism about the prospects for oil recovery they have also contributed to the estimates on the production in the United States: the Energy Information Administration (EIA ) has the cut of 100 thousand barrels per day for both this year and for the next one. It expected that from an average of 9.4 million barrels per day in 2015 will fall to 8.6 mbd in 2016 and 8 million barrels per day in 2017. The output will fall to 7.9 million barrels per day in the third quarter of next year, losing well 1.8 mbd – notes the EIA – from its peak in April 2015, when the extractions were the highest since 1971 .

The price of WTI, provides the statistical arm of the Department of Energy, will remain under $ 40 / barrel during the first half of 2017, reducing the cash flows for oil companies .

Accessions to the summit are numerous : there are at least 18 countries, according to the latest figures, provided at the weekend by the Venezuelan Minister Eulogio Del Pino . But two non-OPEC countries which in the past had collaborated in joint cuts with the sign this time balked : Norway has made it clear yesterday that there will be , while Mexico said it will limit itself to the role of " observer ."