News that the Organization of the Petroleum Exporting Countries (OPEC) will have limits of production in effect from November led to a rush to crude oil, whose price has gone up this Wednesday.
THE OPEC represents about 42% of the world production and has 14 members, among which are Iraq, Saudi Arabia, Venezuela and Angola. The representatives of these countries gathered in Algeria and there are months that the idea of limiting production has been considered as a way of boosting prices, but the strategy had never achieved consensus between the different States.
The organization has not disclosed formally is still to the conclusions of the meeting, but the international press agencies began to advance that the several countries have decided to establish an agreement. Later, and when the decision was already given as a right in a good part of the international press, the minister of Energy of the United Arab Emirates has confirmed, on Twitter, that the countries had reached an understanding.
The barrel of brent (the North Sea oil, which is a reference world), was about 22h a rise of 6%, to 48,73 dollars (value at the beginning of this month to 45 dollars, almost touched us $ 50 in the second week). With a similar trend, West Texas Intermediate, produced in the U.S. went up a little over 5%, to 47,07 dollars per barrel.
according To the agency Bloomberg, the proposal on the table for the meeting in Algeria will cause a majority of the members of OPEC to reduce production by 1.6% compared to the average of the values between January and August. Outside of this limit will be Libya, which struggles with a civil war, and Nigeria, whose economy is striving to climb out of a recession. Also iran Will have a different limit, once that have been raised this year the economic sanctions that have allowed the country to re-export oil to the U.S. and the European Union.
Venezuela, whose economy shrank and that crosses a huge lack of liquidity, is one of the countries that has pressed for that there are ceilings to a tight production to make prices rise. On the other hand, Saudi Arabia took over up here the opposite position.