After two days of intensive negotiations in Vienna, the Organization of Petroleum Exporting Countries (OPEC) and allies, including Malaysia, eventually broke the corpse and reached agreement on a reduction in production that was greater than expected.
(New York, Vienna, 8). After two days of intense negotiations in Vienna, the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Malaysia, finally broke down the corpse and reached a larger-scale reduction of production than expected. .
OPEC and its allies agreed to lower the market supply by 1.2 million barrels a day, and OPEC carries 800,000 barrels. Iran has become the winner of the talks and said he is exempt from production cuts due to US sanctions.
Oil prices rose by 5.4%
After the report, the international oil price was published at 5.4%, which was more likely to jeopardize US President Trump, who urged OPEC not to stop production to cut oil prices.
Yesterday's Brent crude oil contracts rose by 1.61 USD, 2.7%, closing at 61.67 USD per barrel. At the beginning of the session, the contract fell below $ 60 a barrel, and the oil-producing countries seemed to maintain their production targets. Subsequent to Brent crude oil futures reports, they reached a month of $ 63.73 and then returned back.
New York oil futures rose by $ 1.12 or 2.2% to $ 52.61 per barrel to $ 54.22.
New York oil prices rose 3% a week and Brent oil prices rose 4.8%. Oil demand has risen since October, and global demand growth has worsened and oil prices have fallen by 30%.
Before the OPEC secretariat made this breakthrough, as an important mediating power between Saudi Arabia and Iran, non-OPEC members called for a number of bilateral meetings. The power of transforming the global oil landscape is putting increasing pressure on OPEC, which makes an unprecedented dependence on Russian support and the sharp opposition of Trump.
The final agreement to reduce production was unexpected, as delegates said the previously discussed proposal was a daily reduction of about 1 million barrels, and OPEC was responsible for 650,000 barrels.
Revaluation in April next year
The oil producing countries will use October's production as the basis for a reduction in production and a re-evaluation of the agreement in April next year.
The scale of Russian manufacturing cuts is still unknown. One representative said earlier that the country's initial reduction in production was between 100,000 and 150,000 barrels per day, but later suggested that it could agree that it would be slightly higher than this.
Sin Chew Daily / Finance ‧ / 2018.12.08