Wednesday, September 28, 2016

Oil: Opec limited flow rate – Oil price rises – MIRROR ONLINE

The organization of the petroleum exporting countries (Opec) has agreed, apparently, to limit the flow rate – for the first Time in eight years. The Iranian oil Minister bids Chan Sanganeh told the news Agency Shana, the organization have agreed after two and a half years of negotiations on measures to stabilize the Market. “Opec has today made an extraordinary decision,” the Minister said.

The Bloomberg news Agency confirmed the agreement, citing an Opec delegate: At an informal meeting had agreed Opec to a funding limit of 32.5 million barrels (about 5.2 billion liters) per day of Meeting in the Algerian capital, Algiers. That would be almost 750,000 barrels less than in August.

For the markets, the agreement came as a surprise. Oil prices shot up. In the futures market, the price for a Barrel (159 litres) of North sea places to put Brent for delivery in November last by 6.5 percent to 48,96 dollars. The price for a barrel of the US variety of West Texas Intermediate (WTI) rose by 6.13 per cent to amounted to 47.41 dollars.

reports The turning back according to insiders to a rapprochement of Iran and its arch-rival Saudi Arabia, the news Agency Reuters.

In November, the flow rates of individual countries

The details were reported after six-hour informal discussions. The next official Opec Meeting in November, the exact funding would be determined quantities of the individual countries. Then, Non-Opec should be encouraged in countries such as Russia, to cut production.

Although Oil prices are already since months very low, could not some of the Opec differently than in previous times – long to a shortage of raw material. Background among other things, the strategy that new competitors, such as the shale gas industry can be pushed in the USA with the low prices from the market.

at last, However, the fall in Oil prices was also reflected in the rich Saudi Arabia to the economy. The government in Riyadh had locked against exceptions for Iran, with which the country Oil industry following the lifting of sanctions again. Last Saudi Arabia, Iran indicated that the production of the “reasonable maximum volumes”. Saudi Arabia and Iran rings as a Golf-regional powers politically for dominance.

The high-flying Oil prices moved to the American stock markets, energy stocks, with the top, so that the Dow Jones Index turned into a Plus.


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