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Institute of International Finance OPEC displays options to cope with low prices
04-11-2014 01:43 PM
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Institute of International Finance said that before the Organization of Petroleum Exporting Countries (OPEC) 3 scenarios in the meeting scheduled on the 27th of this month, to discuss whether they will adjust production target size.
The report added that OPEC countries will enter the meeting scheduled to be held in Vienna and has no clear strategy to curb production to raise prices. He stressed Institute yesterday that the state of the scramble for market share among the members of OPEC, price stability calculation, revealed the collapse of discipline that prevailed in the past, and which has been a driving force that brought the organization states. He stated that the first scenario is that happening agreement the withdrawal of at least 1.5 million barrels per day from the market in the coming months, and that the members agree on "burden-sharing" and a commitment to this format during 2015. He said that it is liable to restore oil prices to rise rapidly towards $ 100 a barrel, or perhaps higher. The second scenario, is to reach an agreement on the target, without reaching a concrete agreement on the formula of "burden-sharing", and in this case would ignore the market advertising and moving forward in the current track, with the possibility of further decline in prices. He said that the third possibility is that the meeting ends In windy and no agreement reached, in which case prices could decline further and remain weak in the medium term. According to OPEC data to supply the supply of the organization, amounted to about 30.72 million barrels a day in October, a decline of 30.84 million barrels per day last September. Financial Times UK estimates that OPEC will lose $ 200 billion, or 20 percent of its revenues amounting recently trillion dollars a year, if oil prices fell to $ 80 a barrel. The decline in the price of Brent crude yesterday towards $ 85 a barrel, with the rise of the dollar and the release of Chinese data indicate to a slowing economy as well as weak demand for fuel in the largest energy market in the world. The US dollar touched its highest level in seven years against the yen, which adversely affect the price of oil, as it more expensive for investors from holders of other currencies. It is noteworthy that OPEC produces about a third of the global needs of the oil, and was founded in September 1960 in Baghdad, agreement signed by Iraq, Iran, Kuwait, Saudi Arabia and Venezuela, and then the rest of the Member States joined successively. It currently has OPEC's 12 countries are Saudi Arabia, Iraq, the UAE, Kuwait, Qatar, Libya, Algeria, Iran, Venezuela, Angola, Ecuador and Nigeria.
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04-11-2014 01:43 PM
Free -
Institute of International Finance said that before the Organization of Petroleum Exporting Countries (OPEC) 3 scenarios in the meeting scheduled on the 27th of this month, to discuss whether they will adjust production target size.
The report added that OPEC countries will enter the meeting scheduled to be held in Vienna and has no clear strategy to curb production to raise prices. He stressed Institute yesterday that the state of the scramble for market share among the members of OPEC, price stability calculation, revealed the collapse of discipline that prevailed in the past, and which has been a driving force that brought the organization states. He stated that the first scenario is that happening agreement the withdrawal of at least 1.5 million barrels per day from the market in the coming months, and that the members agree on "burden-sharing" and a commitment to this format during 2015. He said that it is liable to restore oil prices to rise rapidly towards $ 100 a barrel, or perhaps higher. The second scenario, is to reach an agreement on the target, without reaching a concrete agreement on the formula of "burden-sharing", and in this case would ignore the market advertising and moving forward in the current track, with the possibility of further decline in prices. He said that the third possibility is that the meeting ends In windy and no agreement reached, in which case prices could decline further and remain weak in the medium term. According to OPEC data to supply the supply of the organization, amounted to about 30.72 million barrels a day in October, a decline of 30.84 million barrels per day last September. Financial Times UK estimates that OPEC will lose $ 200 billion, or 20 percent of its revenues amounting recently trillion dollars a year, if oil prices fell to $ 80 a barrel. The decline in the price of Brent crude yesterday towards $ 85 a barrel, with the rise of the dollar and the release of Chinese data indicate to a slowing economy as well as weak demand for fuel in the largest energy market in the world. The US dollar touched its highest level in seven years against the yen, which adversely affect the price of oil, as it more expensive for investors from holders of other currencies. It is noteworthy that OPEC produces about a third of the global needs of the oil, and was founded in September 1960 in Baghdad, agreement signed by Iraq, Iran, Kuwait, Saudi Arabia and Venezuela, and then the rest of the Member States joined successively. It currently has OPEC's 12 countries are Saudi Arabia, Iraq, the UAE, Kuwait, Qatar, Libya, Algeria, Iran, Venezuela, Angola, Ecuador and Nigeria.
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