Oil falls with no agreement to cut production
The oil is falling about 1%, after Russia and Saudi Arabia have agreed to keep the production feedstock unchanged. Prices had shot with the expectation of a cut in supply.
15:56 • Business
Vera Bouquet – Business Journal
Saudi Arabia and Russia, the two largest producers of the world’s oil, met Tuesday and agreed to keep production levels unchanged from January. But the agreement besides not mean a reduction in supply, has several conditions, including the participation of other countries.
Thus, in the context of maintaining the supply surplus in the markets, oil prices are now falling. Brent crude, traded in London, which serves as a benchmark for Europe, is to devalue 1.95% to $ 32.73 per barrel. thus reversing the session started the trend that came to shoot a maximum of 6.47% to $ 35.55, with the expectation of an understanding between the two countries.
In New York, West Texas Intermediate ( WTI) is also retreating 1.66% to $ 28.95 per barrel. Reached advancing 7.1% to $ 31.53 per barrel during the morning of Tuesday, before being shown the result of the meeting. conditioning Agreement
energy minister of Qatar Saleh al-Sada, who is moderating the negotiations and also participates in the supply of maintenance agreement, said that production will remain at levels Janeiro. According to the oil minister of Saudi Arabia, Ali al-Naimi, these are the “appropriate” levels to meet demand.
Saudi Arabia produced 10.2 million barrels per day in January, according to the data provided by the country to OPEC and are in line with the estimates of the International Energy Agency (IEA). Russia produced almost 10.9 million barrels per day, according to official figures cited by Bloomberg.
After the meeting, the Minister of Energy of Russia, Alexander Novak, reiterated that the freezing of the offer is dependent the participation of more countries. A condition that analysts find it difficult to accomplish.
“This is an announcement of the continuation of production between countries whose supply or increased recently,” said Eugen Weinberg, quoted by Bloomberg. “If Iran and Iraq are not part of the agreement, not worth much,” believes the director of “research” of raw materials Commerzbank.
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