Energy Aspects: OPEC will extend Vienna agreement

Energy Aspects: OPEC will extend Vienna agreement 'OPEC’s main task is to limit oil exports'
March 17, 2017 11:55
Energy Aspects: OPEC will extend Vienna agreement

Baku. 17 March. REPORT.AZ/ Decline in US oil reserves in contrast to expectations in latest reporting week has once again confirmed the effectiveness of OPEC agreement.

Report informs citing the, analysts of US-based Energy Aspects consulting company believe, agreement reached by OPEC and non-member countries on November 30 in Vienna to cut production will be extended in next meeting on May 25 for another 6 months.

According to Energy Aspects, although the growth in oil prices in recent times increased US shale oil production, inventories will continue to decline. Currently, US shale oil companies are trying to reduce costs and in such a way they try minimize dependence on OPEC.Analytical research shows that the volume of oil supplied from OPEC and non-member producers significantly reduced and oil market will feel it soon.

According to forecasts, this year's daily oil production will increase by 1 mln in US and Canada. Moreover, analysis highlighted that Russia’s failure to fulfill its obligation (production cut by 156 thousand barrels/day instead of 300 thousand barrels/day) will extend OPEC's agreement. 

Energy Aspects said at present OPEC’s main task is to limit oil exports. Because despite the production cuts, increase observed in oil exports.

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