Cutting term in oil production can even be realized

As Offshore Panorama is releasing sporadically, really it seems that members of the Organization of Petroleum Exporting Countries (OPEC) and countries outside the cartel are interested in extending the period of production cuts to a period after the stipulated.

It turns out that even with the reduced supply by 1.2 million barrels per day, which began on January 1, 2017, oil stocks in developed nations, particularly the United States, have encouraged companies to produce more, which prolong take in six months to reduce reserves.

According to a delegate of OPEC, an extension in the deadline would be necessary to balance the market. In information released previously by Panorama Offshore, the energy minister of Saudi Arabia, Khalid al-Falih said that members of the Organization have shown themselves willing to extend the cut duration in the production of commodity.

In addition, a survey of market analysts held on March 17, showed that to sustain the recovery in prices in the oil barrel OPEC, will need to expand its production cut ( whAFX).

However, the hammer on the decision must hit only at the next meeting of OPEC members, which should take place on 25 May in Vienna and another meeting between the cartel in countries outside the Organization also in May. Meanwhile, we are expecting on the valuation of the commodity during this overall reduction of exploitation of "black gold".


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