Opec, meeting in Vienna, manages to reach an agreement to reduce its production of 1.2 million barrels per day ( AFP/Archive / JOE KLAMAR )
This is the first time since 2008 that the 14 countries of the cartel agree to limit their production, cutting short the pessimism of many observers.
The secretary-general of OPEC, Mohammed Barkindo of Nigeria in Vienna on 30 November 2016 ( AFP / JOE KLAMAR )
This agreement has resulted in an increase of nearly 10% of the course of the black gold on the New York Mercantile Exchange, where a barrel of WTI, the benchmark american crude, took 4,21 million dollars, or 9,31% to 49,44 dollars on the contract for delivery in January. Oil prices were also oriented slightly upward on Thursday morning in Asia.
The markets also welcomed the announcements in the European union: 17: 05 GMT, a barrel of Brent North sea for delivery in January was worth as well 50,10 dollars in London, an increase of 3.72 dollars compared to the end of Tuesday.
Overall, the stock markets have also welcomed this agreement, opening up of 1.34% for the Tokyo stock Exchange Thursday morning, and 0.40% for the stock Exchange of Hong Kong.
“This is a very good agreement, to my own surprise!”, has recognized Bob Yawger, from Mizuho Securities, New York, in summarizing the general sentiment on the market.
Oil : agree to reduce the production ( AFP / Jean-Michel CORNU, Simon MALFATTO )
The agreement will be effective as of “1 January 2017″, said the minister, qatari Energy Mohammed Saleh al-Sada, who presides over the conference of the Opec, referring to a decision “historic, which will certainly help to rebalance the market and to reduce the glut of inventory” of oil.
Opec, he said, will reduce its production of 1.2 million barrels per day, bringing its ceiling to $ 32.5 million barrels per day”. In October, the cartel had produced 33,64 million barrels.
And the organization should be, as she wished to, result in its movement in Russia, the world’s largest producer of oil, which is “committed to reduce by 300,000 barrels” production, announced by the minister of qatar, after a meeting in the austrian capital.
Conference of the Opec in Vienna, on November 30, 2016 ( AFP / JOE KLAMAR )
Moscow confirmed Wednesday evening its intention to participate in the effort if the cartel keeps its commitments. Russia would thus contribute to half of the target reduction volume (600.000 barrels) applied to countries outside of the Opec.
The agreement concludes weeks of intense negotiations like a poker between Riyadh, Baghdad and Tehran. Saudi Arabia had announced clearly that it will not agree to reduce its production if Iraq and Iran, 2nd and 3rd respectively producers in the cartel, did the same.
- world Inflation “more healthy” -
In practice, the largest declines in production will be supported by saudi Arabia (-486.000 b/d), Iraq (-210.000), the united arab Emirates (-139.000) and Kuwait (-131.000), the largest producers apart from Iran, according to a document released by the Opec.
Iran has been successful and will be able to increase its production of 90,000 b/d to 3.8 million. Its oil minister, Bijan Namdar Zanganeh, made a sign of victory in front of journalists as he left the headquarters of Opec.
in Addition to Iran, who wants to be able to take advantage of the lifting of economic sanctions against Libya and Nigeria are exempt from the limitations due to the conflicts that they face, and their impact on their finances.
Indonesia, which has refused to endorse the agreement, has seen its membership to Opec, “frozen”.
The Vienna agreement reflects the commitments made by Opec at the end of September in Algiers, where the ministers of the cartel had set a goal of lowering their production of 32.5 and 33 mbj.
In general, the agreement will boost inflation worldwide at a rate “more healthy”, including the United States, said Mohammed Saleh al-Sada.
With the effort made by the Russian federation, its implementation should lead to a reversal of the structural surplus of production, which fell flat courses for the past two years.
analysts skeptics have cautioned, however, that the application of the limitations must be closely monitored, because no sanction is provided for the offenders.
If the prospect of a fuel more expensive will not rejoice not motorists, the expected increase in price is expected to relieve the budgets of the oil countries.
The big producers of the Opec, Saudi Arabia in the lead, had long supported a strategy of low prices, hoping to lock out competitors, including producers of oil shale in u.s. and regain market share.
But even the public finances of the rich Saudi Arabia, had ended up suffering the effect of the low price. And the fall in oil revenue has exacerbated an economic situation that is already dramatic in Venezuela.
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