oil Prices steadily rising before the OPEC+, which, as expected, the decision on the extension of the existing level of reduction of production at 9.1 million barrels per day for a period of 1 to 2 months.
Meeting of the technical Committee of OPEC+ scheduled for 6 June. The date of the meeting of the Ministerial Committee is not yet officially announced, but according to some media, it also will be held June 6, after a meeting of the technical Committee. It is not excluded that in case of disagreement, the talks will continue on 7 June.
Earlier, from informal sources it was reported that Russia and Saudi Arabia have agreed on the extension of the deal for another month, until the end of July this year. The main friction between the parties to the agreement on the reduction of production arise because of the failure of its conditions to certain countries. Iraq in may, has reduced production to less than half of the quota, while Nigeria only half of the required volume. Also half fulfilled its obligations Azerbaijan.
in addition, as noted by the Department of strategies on the commodity market, Saxo Bank, OLE Hansen, fears of OPEC members+ is the fact that American shale producers are gradually beginning to resume production, seeing that mark WTI returns to profitable levels.
the New deal OPEC+ valid from may 1 of this year. To date, 100% of the transaction was carried out – Saudi Arabia, UAE and Kuwait. Russia fulfilled its obligations by 98%. The head of the energy Ministry of Russia Alexander Novak assessed remained to the end of may, the excess of oil on the market at 7 million barrels. In his opinion, in June needs to be a balance of supply and demand, and in July, we can anticipate a shortage of oil.