This is the first time since 2008 that the 14 countries of the cartel agree to limit their production, defying the pessimism of many observers.
The agreement will be effective as of the “January 1, 2017“, said the minister, qatari Energy Mohammed Saleh al-Sada, who presides over the conference of Opec, citing a decision “history, that 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, that is “committed to reduce by 300,000 barrels” its production, announced by the minister of qatar, after a meeting in Vienna, where the Opec.
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 cartel.
The markets have welcomed these announcements: to 17: 05 GMT (18: 05) in Paris, a barrel of Brent North sea for delivery in January, was worth 50,10 dollars in London, an increase of 3.72 dollars compared to the end of Tuesday, while while WTI for the same maturity was 3,92 $ 49,15 dollars.
during the meeting, the courses have reached their highest level in a month.
The agreement concludes weeks of intense negotiations like a poker between Saudi Arabia, Iraq and Iran. Ryad had clearly announced that he would not assent to decrease its production if Baghdad and Tehran, 2nd and 3rd respectively producers in the cartel, did the same.
- world Inflation “healthier” –
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, has sent a sign of victory to reporters as he left Opec’s headquarters.
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 in Opec “infrozen“.
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 mbd.
In general, the agreement will boost global inflation to a “healthier“, 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 prices is expected to ease the budgets of oil-producing 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 the 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. The fall in oil revenue has exacerbated an economic situation that is already dramatic in Venezuela.