OPEC will settle production limits in June
The member countries of the Organization of Petroleum Exporting Countries (OPEC) decided to defer until June the decision to extend or not current agreement on production limits
The ministerial follow-up committee of OPEC and non-OPEC countries (JMMC) confirmed its desire to wait until the June 25th conference to decide on the production target for the second half of 2019. The committee does not have the capacity to make decisions and wishes to organize a new meeting for the month of May in Saudi Arabia.
After having participated in the meetings the Russian Minister of Energy, Alexandre Novak, said that it is difficult to plan production in advance due to market volatility resulting from US sanctions against Iran and Venezuela, both major oil producers.
It should be emphasized that the current measures to limit production among OPEC countries were established in December and are valid until June of this year. These countries committed to reduce the production of 1.2 million barrels per day to collaborate with the price of crude oil.
The alliance favored the Organization of Petroleum Exporting Countries (OPEC) since it was losing prominence and gave a new face to Russia that became the arbiter of the oil market. For 2016, the average price of the barrel was about 40 dollars and by 2018 the price reached 70 dollars.
L.Sáenz
Source: BancayNegocios
