The oil countries agree to limit their production – The World

the members of the Organization of petroleum exporting countries (OPEC) reached Wednesday evening, September 28, in Algiers an agreement with ” history “ to limit their production. The secretary of State of nigeria for the petroleum, Emmanuel Ibe Kachikwu, has described a cap at a level of ” $ 32.5 million to 33 million barrels per day “, at the end of an informal meeting. The current production is estimated at 33.2 million barrels per day.

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The minister qatari energy, Mohammed Saleh Al-Sada, who chaired the meeting, confirmed this figure. the ” It was a very long meeting in Algiers, but history “, he stated, specifying that the reduction level per country will be defined by the top of the cartel in Vienna, the 30th of November.

” Strong consistency “

He stressed that the meeting was held in an atmosphere of ” very positive reflecting the strong coherence of OPEC “ in order to support the price of black gold, in free fall for the past two years.

For his part, the minister of energy of algeria Noureddine Boutarfaa explained that this unexpected decision on a decrease of the production was ” unanimously and without reservation “. The day before, saudi Arabia and Iran, the two great regional rivals in the Middle East, had yet displayed divisions.

Russia, the world’s second largest exporter behind saudi Arabia, is present in Algiers but had stated that it would announce its position after the meeting of the fourteen members of OPEC.

oversupply

The news immediately pushed up the price of crude oil, which have ended in the net increase in New York, while markets had been expecting the opposite of what the meeting would lead to a discrepancy report. The price per barrel of benchmark crude oil (WTI) in the United States has won with 2.38 $ 47,05 dollars on the contract for delivery in November. In London, the price of a barrel of Brent North sea for delivery at maturity has also increased from 2.72 $ 48,69 dollars.

Yet, say analysts, such an agreement does not change the fundamentals of the market, plummeted since mid-2014 by oversupply, the result of the boom in the hydrocarbons from shale in the us, and the strategy of OPEC to fully open the taps on to maintain its market share.

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