The Opec will reduce its production – The Figaro

Coup de theatre in Algiers: Opec countries are managed on Wednesday evening to agree to limit their production of black gold to support the price permanently weakened by oversupply.”We have an agreement with to (decrease the production) of 32.5 to 33 million barrels per day,” said the secretary of State of nigeria for the Petroleum, Emmanuel Ibe Kachikwu, the outcome of an informal meeting of members of the Organization of petroleum exporting countries in Algiers. The minister qatari Energy has confirmed this number.
The agreement meant that Opec will reduce its production of 750 000 barrels per day (mbd). This is roughly the number of barrels that were pumped last march, the cartel’s oil (32,47 mbd), according to the statistics of the international Energy Agency (IEA).
To the Wall Street Journal, the Opec has found, in Algiers, an agreement in principle on a freeze of the production, the terms of which will be discussed at the summit of the Opec in Vienna, on the 30th of November next.
The common ground that was found by the Opec is the result of hard negotiations to overcome the rivalries within it, whereas the informal meeting of its members continued (shortly before 19: 00 GMT), nearly five hours after the beginning.
The reduction that would be accepted, however, remains below the increase in production observed over one year within the Organization: in August, the cartel pumped 33,47 mbd, an increase of 930.000 barrels a year, according to the IEA.
Despite this, the news immediately pushed up the price of crude oil, which have ended in the net increase in New York, while markets had been expecting the opposite of what the informal meeting of Algiers leads to a discrepancy report.
The price per barrel of benchmark crude oil (WTI) in the United States has won with 2.38 $ 47,05 dollars on the contract for delivery in November. And, in London, the price of a barrel of Brent North sea for delivery at maturity has also increased from 2.72 $ 48,69 dollars.