Brent prices rose 4 percent to record Brent crude oil $ 63.22 a barrel, amid a positive atmosphere and a broad international presence, starting tomorrow in Vienna three ministerial meetings at the headquarters of the Organization of Petroleum Exporting Countries "OPEC" and last two days.
The meetings begin meeting of ministerial committee 17 to monitor the reduction of production, which is made up of "OPEC" countries and abroad headed by Energy Minister Prince Abdul-Aziz bin Salman, Russian Alexander Novak and his counterpart, followed by a second meeting, a ministerial No. 177 meeting of the countries of "OPEC", and the third meeting is held tomorrow Friday, the seventh ministerial meeting of the countries of "OPEC" and their partners from outside the organization.
The technical committees completed their work with the participation of experts from "OPEC" countries and outside, and recommended cutting production to support market stability and face the abundance of potential supplies during the next year, in exchange for expectations of slowing demand as a result of the consequences of the trade war between the United States and China.
And successively the arrival of ministers of energy, oil and gas "OPEC" and beyond to Vienna and took control of an atmosphere of optimism at the meeting, which comes in the presence of a crowd of international media.
In this context, oil prices continue their price gains due to the optimism of the meeting of producers, and expected to agree on the plan to continue to reduce production, and restrict global supply to support market balance, and overcome the potential abundance in supply next year.
In this context, says to "Aleqtsadiah" John Hall, director of the International "Alpha Energy" Energy Company, said that producers enter the three ministerial meetings, and the development of the market is still not clear in the light of the continuing uncertainties surrounding the negotiations of US trade - China, widening concerns due to Geopolitical Risks.
John Hall, added that "OPEC" used to quiet policies and Almitrith that far from causing any shocks in the market, so they are in a state of alert and continuous follow-up and evaluation of the developments of the situation, pointing out that taking production deeper cuts may be relatively unlikely, and the alternative at hand in strong is the extension of existing cuts amounting to 1.2 million barrels per day of new periods especially the first half of next year, which is expected to see a glut in the oil supply.
Another Part, explained to the "Aleqtsadiah" David Lisma analyst at South Court International Energy, that the news circulated in the market abound, but it is clear that the last word will come out after intensive discussions bring together "OPEC" countries and outside, noting that Iraq's announcement of a proposal to deepen The cuts of about 400 thousand barrels per day are under study and negotiation between producers, and has not yet reached a final position.
He pointed out that the forecast comes within the framework of a reading of OPEC's previous positions, which focuses on slowing down in unilateral steps, where they tend To a comprehensive reading of the market situation in the light of supply and demand data, stocks, geopolitical factors, and global growth.
Andrew Morris, director of consultancy Boeri, expects the current OPEC meetings to push producers to achieve a high level of conformity to cuts, especially after recent increases in Russian production after the recovery from the pipeline contamination crisis, and also in Iraq's production. Nigeria, pointing out that the proportion of conformity in the "OPEC" reached 147 percent during October and 103 percent in non-OPEC countries in the same month
In turn, Chinese analyst and energy specialist Xue Sahe, said that Saudi Arabia is already making more voluntary cuts than the required quota but at the same time keen on the commitment of all producers to work together and cooperate to restore stability and balance in the oil markets.
Sahi noted that the trade war file is the hottest and most influential in the meetings, especially in light of expectations that economic growth will slow significantly unless there is near progress in trade negotiations, in addition to the escalation of US sanctions on Iran and Venezuela, in return for the continued increase in US supplies, and the occurrence of further increases wide in the supply of Brazil and Norway.
Brent crude futures rose 2.46 cents, or 4.03 percent, to $ 63.30 a barrel, according to Reuters.
U.S. West Texas Intermediate (WTI) crude futures rose 2.39 cents, or 4.30 percent, to $ 58.51.
OPEC + has been cutting supplies since 2017 and is expected to keep the cuts in place to ease the impact of record US production.
It is expected, traders and analysts and brokers ships that US crude exports touching four million barrels per day level for the first time ever in the coming months, thanks to the high demand for low-sulfur crude types and the completion of pipeline projects and export along the US Gulf Coast.
Traders said demand for US light and low sulfur crude was rising, particularly from the US Permian Basin, because of a new maritime law requiring ships passing through the oceans to use low-sulfur fuels to reduce pollution from January 1.
According to dealers, the demand for export may fall due to higher freight rates until January at least.
It is expected that demand from Asia over the coming months, and reached profit margins producing oil and low sulfur fuel in Asia is very Brent crude and light crude is low sulfur highest level in two and a half months last Monday.
