OPEC, Russia Agree To Slash Oil Output Despite Trump Pressure

Azmin said this in a statement issued following the fifth Organisation of the Petroleum Exporting Countries and non Opec Ministerial Meeting in Vienna

Azmin said this in a statement issued following the fifth Organisation of the Petroleum Exporting Countries and non Opec Ministerial Meeting in Vienna

Brent crude, the global benchmark for oil prices, was trading at $63 a barrel, up almost 5% at midday U.S. Eastern time. It is believed that it will have a huge effect on India and once again the order of the price hike of petrol and diesel may start. Although Iran has emerged as a victor in this controversial conversation.

In other news, the Energy Information Administration (EIA) reported that domestic crude supplies fell by 7.3 million barrels for the week-ended November 30.

He said in a statement after attending the 5th Opec and non-Opec Ministerial Meeting in Vienna, Austria today that oil producing countries had agreed to reduce production from 1.8 million barrels per day to 1.2 million barrels per day for the next six months.

An output reduction also would provide support to Iran by increasing the price of oil amid attempts by Washington to squeeze the economy of OPEC's third-largest producer. In this way, he managed to persuade Saudi Arabia and Iran, which was considered the hardlinest opposition.

Oil producers have been under pressure to reduce production following a sharp fall in oil prices over the past couple of months.

The deal at the end was a surprise to everyone.

Signs about a positive outcome of the pally with the non-OPEC allies emerged early Friday, with Russian Federation agreeing to cut output by 200,000 barrels per day. He tweeted that OPEC should raise production ahead of the sanctions and USA oil producers did so as well.

The OPEC oil bloc does not make its decisions based on "politicians' appeals on Twitter", Russian Energy Minister Alexander Novak said on Thursday.

However, the Friday's deal exempted Iran, along with Venezuela and Libya.

The cut is likely to anger US President Donald Trump, who on Wednesday tweeted: 'The world does not want to see, or need, higher oil prices!'

Mohamed Azmin said this decision is a testament of Malaysia's commitment to worldwide cooperation to face economic challenges posed by the global oil market.

"We continue to expect that slower economic growth will weigh on oil demand next year, which coupled with rapid growth in United States production, will put renewed downward pressure on prices", said Caroline Bain, an economist at Capital Economics. The OPEC+ output cut deal will bring OPEC+ production back to its level at the beginning of the year.

The EIA said the U.S. has been a net oil importer in weekly data going back to 1991 and monthly data starting in 1973.

A breakdown of the agreement shows OPEC members agreed to trim production by 800,000 bpd, while non-OPEC producers agreed to shave 400,000 bpd off the market.

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