What would normally be bearish (say, a large accumulation of crude oil) will actually be bearish today, but in the end, the numbers will most likely be overwhelmed by the reaction to OPEC production cuts. For most of last year, however, the oil hovered around $ 50 a barrel, thanks to a combination of factors, including fires in Canada and companies forced to reduce their production. In February 2016, it touched lows of less than $ 30 a barrel. A pre-dollar bout was traded out after the rumor spread that Russia will not go along with OPEC in making production cuts. With it produces less oil, the price has gone up. When the US oil shakes peaks the peaks and peaks are not OPEC.
world oil production, since the early 1980s has been steadily increasing except for two short breaks. US oil production was already a factor in OPEC’s decision against the exit cut at the end of 2014, even though prices had fallen. The impetuous production of US oil has obscured disappointing exit in a number of other countries outside OPEC, which should have emerged as counterweights to the cartel. OPEC production of 14 Crude oil increased by 35,000 barrels per day, but that was after March production had been revised downward from 32,000 barrels per day and April production was revised downward from 89,000 barrels per day.
February 21 The short-term recovery of world oil prices is already in danger ”, says the Daily Telegraph, citing experts’ analysis to export data showing that the reality of OPEC cuts is much less significant than the reduction of the title production to be supported. Good 2015 World Oil Outlook does not present price charts or tables. The OPEC 2015 World Oil Outlook came out a few days ago.
Since prices remained stable above $ 100 a barrel, OPEC allowed its organizational structure for atrophy, raising doubts that it can now impose discipline, if necessary. Figure 4 The low price of 2015 gives the oil industry a hangover in 2016 and power drops 1 Mbpd. In 2016, it causes an overall decrease in oil production capacity of 1 Mbpd and an increase in demand of 1 M barrels. oil price, even in the same term, acts against the OPEC interest by imposing volatility on the market and pressure on the price, ‘which was in contrast to comments by Saudi oil minister Khalid al-Falih whosaid last week that a consensus was emerging that the current deal needed extending after 2018 to ensure stable investment and prevent a shock.
expected increase in raw stocks from 300 to 600,000 barrels and small increases in both petrol and distillates is also expected. If the current oil price trend continues, there will be no need for an extension of the OPEC contract, Zanganeh said. If it continues, there will be no need forextension of the OPEC agreement, “said Zanganeh.