*Osama Suleiman from Vienna
Amid a wide international follow-up and alert in the world oil markets, the work of the ministerial meeting No. 175 of OPEC will begin Thursday in Vienna in order to discuss developments in the market situation and ways to restore balance after a downward spiral in prices over the past two months, during which Brent crude lost 21 percent of its value.
From within the corridors of the meeting, observers and analysts said to the Economist, "This meeting is important and detailed for the oil industry in light of the increasing impact of geopolitical factors in the markets."
They pointed out that the withdrawal of Qatar from OPEC has limited impact, as it cannot spoil the atmosphere of the meeting - despite the efforts of some parties to achieve this goal.
They noted that OPEC is still strong and will become stronger with deepening relations of partnership and cooperation with non-OPEC countries.
The Ministerial Committee on production control, chaired by Saudi Arabia and Russia, and members of Kuwait, Venezuela, Algeria and Oman, confirmed the unity and cohesion of OPEC producers and beyond, their desire to replicate past success, their full satisfaction with the commitment of producers and their desire to make every effort to restore market balance.
Alexander Novak, Russian Energy Minister, said to the Economist that his talks with his Saudi counterpart Khalid al-Faleh on the sidelines of the ministerial committee meeting to monitor production were very positive and were facilitated by the Saudi-Russian understanding and rapprochement.
Novak predicted that the talks today and tomorrow will produce effective measures to support the market balance and correct the course in light of the current difficulties.
For his part, Dr. Falah al-Amri, a member of the Iraqi team of experts, said that he was very satisfied with the results of the technical meetings that had reached a precise and objective view of current market conditions in the light of the supply gap.
In its latest report - on the occasion of the ministerial meeting - OPEC reported that producers are happy with the success of their cooperation over the past two years.
It is the first time that non-OPEC member countries have joined the organization in their efforts to restore stability to the market through voluntary adjustments at the production level.
The report pointed out that cooperation is continuous and characterized by organization and transparency, which indicates the strategic cooperation between OPEC countries and independent, which strengthens the industry and protects it from the risk of future crises.
It pointed out that with the sharp decline in prices in mid-2014, OPEC was interested in launching a partnership with ten countries outside the Organization and had the courage and the will to take action and already managed to save the oil market.
The report said, "When the cooperation was first announced at the end of 2016, this was initially welcomed by a group of rejecters who claimed to rebalance the global oil market as it can never be achieved, but their expectations have been disappointed, and success has been achieved steadily and represent a decline in stocks and restore balance."
The report pointed to the continuous improvement in the fundamentals of the market and the balance of supply and demand.
It noted the ability of producers to repeat this to restore stability, which is very important for future growth.
The Declaration of Cooperation between Producers already foreshadowed a new era of international dialogue and rapprochement and expanded cooperation in the global energy industry.
It was considered as a collective effort that cannot be done by any state alone.
The report said that the declaration of cooperation began as an urgent process to save the oil market, but has now developed into a much better picture, as the basis for global cooperation has been developed and expanded.
This will enable current and future participants to more effectively meet future challenges, enhance economic market stability and stimulate future growth and prosperity.
Ross Kennedy, managing director of energy services group QH, said to the Economist, "The meeting of producers in OPEC today comes at a precise timing in which the market is facing wide challenges because of the abundance of supply and low prices."
He pointed out that the producers need to reduce the impact as it did in 2016 and there is a determination and agreement to solve this collectively.
Kennedy pointed out that price pressures vary from one product to another, and then the determination of the size of the reduction is still the subject of dialogue and debate among producers, as every party needs to listen to the views of each party and its vision to put the supply and demand now and next year.
He pointed out that everyone is in one boat in seeking to return the prosperity of the industry.
For his part, Thorsten Andrebu, Secretary-General of the International Union of Gas, explained to the Economist that Russia may be less enthusiastic to reduce production, but at the same time is keen to maintain the compatibility and harmony with Saudi Arabia, the largest producer in the OPEC, which has already begun voluntary reductions in oil exports, especially to the US market.
OPEC is capable of crossing crises in the market, especially the impact of tensions in international relations.
"It is committed to its unity and to protecting the market from the effects of geopolitical factors, ensuring sustainable growth and a healthy relationship between supply and demand," he said.
For his part, Andrew Grosse, Asia Sector Manager at MMIC, said to the Economist, "The Ministerial meeting will reflect the collective will of producers and will not take sides at the expense of one party and will listen to all with the placement of market interest and industry growth in the forefront of priorities and not respond to international pressure from one party or another."
Grosse pointed out that the Qatari withdrawal from OPEC membership is ineffective because their production accounts for only 2 per cent of OPEC production.
The current period is also witnessing record increases for producers in the organization, which is led by Saudi Arabia, which exceeded the level of 11 million barrels per day.
On the other hand, the price of oil rose again on Wednesday evening, reversing its direction despite the staggering US supplies, and warning the Chinese government of the growing adverse factors of the economy with Japan expected to announce a contraction of GDP for another quarter.
According to Reuters, Brent crude oil futures were $ 62.24 a barrel, up 16 cents, or 0.26 percent, compared to the previous close.
US West Texas Intermediate crude futures were $ 53.43 a barrel, up 17 cents, or 0.32 percent.
Oil prices are under pressure from a weekly report from the US Petroleum Institute, which said, "US crude inventories rose 5.4 million barrels in the week ending Nov. 30 to 448 million barrels in a sign of growing oil prices in the US."
More broadly, US oil fell after global equity markets tumbled Tuesday, as investors worried about the threat of a global economic slowdown.
Bank of America forecasts that Brent and WTI crude prices will average $ 70 and $ 59 respectively in 2019.
The average price of Brent crude and WTI was $ 72.80 and $ 66.10 since the beginning of the year.
