Report: OPEC members can increase daily production by maximum of 600,000 barrels - ANALYTICS

Baku. 22 June. REPORT.AZ/ 174th meeting of the Oil Exporting Countries (OPEC) is being held in Vienna (Austria) today.

Report informs, traditionally, a technical group meeting took place before the meeting.

Despite the protests of Iran, it was decided to increase daily volume of oil production by 1 mln bbl.

Volume of proposal from Russia was the highest (1.5 million barrels), Saudi Arabian Oil Minister Khalid al-Falih, insisted the overwhelming majority of OPEC and its partners had recommended boosting production by 1 million bpd at a "gradual" pace and on a pro-rata basis.Iran's oil minister, Bijan Namdar Zangeneh, left the meeting in protest.

Analytical Group of Report believes, increase in production supported by US, more truly by administration of President Donald Trump. Official Washington does not conceal its willingness to see oil price at $ 50. If Venice, Iraq and Algeria support Iran and put veto on proposal to increase production at the OPEC meeting, the volume of production will remain at the same level. Otherwise, OPEC would decide to increase the volume of production. Observations show, however, that the technical team's decision is normally adopted at the general assembly.

Nevertheless, OPEC member states have are not ready for increase by 1 mln bbl. According to them the increase potential is 600 thousand bbl. This will be provided by Russia, Saudi Arabia and Kuwait. Venezuela does not have the capacity to increase production. After the technical group's decision was announced, the price of oil at commodity exchanges increased by about $ 1 / bbl up to $ 74 / bbl. It is no exception that the price is approaching $ 80 or $ 70, depending on what will be announced in the soon.