Tag: Saudi Arabia

Late in the evening of 12 April (outside of signing of this number in print), the energy Ministers of the OPEC countries+ will hold a new videoconferencia – apparently, for the final initialling of the text of the agreement on joint reduction in the production of "black gold". In Russia, many industry experts believe that, without this agreement, the domestic producers would have to cut the power in half. Now the barrel there is every chance that his price went back to the bar at $40, maybe even higher. So the cost of the "barrel" will help the domestic budget go a year without "holes" that need to be close from the reserve funds. However, for the oil industry, revenues from which fill about half of the Treasury, and the contract threatens to decline by 15%.

An emergency meeting of OPEC countries+ scheduled for April 9, which will be held in format of teleconference – the center of attention of market players all over the world. The stakes are high: either the States together fail to agree on the reduction of production volumes of "black gold", or the barrel will fall to record low levels, bringing the economies of producing countries, and so lying on the side of the pandemic, a new untold disaster. A lot depends on participation in the dialogue States that have not previously been aside from cutting production. According to preliminary data, the consent to capacity limitation gave Norway, Brazil, Colombia, Egypt, Mexico, and Canada and the United States. However, the participation of the two countries in remote negotiations are not officially confirmed.

Russia and Saudi Arabia at the summit of OPEC countries+ held 9 April via videoconference, to discuss the possibility of reducing global production by 20%. This is with reference to its sources, reports Reuters. In turn, the Wall Street Journal (WSJ), relying on its own channels of information, said that the overall discussion on capacity reduction of 20 million barrels per day. Earlier, Russia offered to cut the appetites of only 10 million "barrels" of which promised to take a limit of 1.6 million barrels a day. "Black gold" until it feels very uncomfortable. Rising on the eve of negotiations to $35, then the rate falls to $33.

The epidemic of the coronavirus, some countries even helps to solve their local problems. So, the consumption of energy in the world greatly reduced, hence the lower market value.

The main intrigue of the world petroleum negotiations is whether countries involved in the new deal OPEC+, to persuade Mexico to accept the General conditions – lasted less than a day. Initially, Mexico refused to cut production by 400 thousand barrels per day. The next day the figure changed to 350 thousand, and the country was agree that 250 thousand of them took over the United States. Now the final approval of the transaction is expected in the evening of 10 April. In the conference of energy Ministers of "big twenty".

Deal within OPEC+, joined our country, the oil gave the market hope that the cost of "black gold" will go back to $40-45. The importance of the document was evaluated at the highest level: the presidents of Russia and USA Vladimir Putin and Donald trump in a telephone conversation discussed issues of stabilization of international prices for raw materials and agreed to continue the dialogue on this issue. It should be noted that for the second time during the day, the heads of state discussed the subject of oil. Last night on the situation on the market of "black gold" they talked with the participation of king of Saudi Arabia Salman bin Abdulaziz al Saud. This composition of participants of the negotiation process makes it clear that the transaction is a done deal. Now there is hope that the cost of "black gold" will go back to $40-45, which will save the Russian budget from another deficit.

Negotiators OPEC+ reduction of oil production has failed to put the final point in the agreement because of the position of Mexico. The Minister of energy this country Nele Rocio Garcia - the only one who refused the offer of quotas to reduce production to maintain the price of a barrel. In the result, it was decided to continue negotiations on Friday, April 10.