The OPEC Nations have agreed for the first Time in eight years, a reduction of Oil production. After a long quarrel they decided to reduce the subsidy amounts to 32.5 to 33 million barrels per day. On the world markets, Oil prices rose immediately.
For the first Time in eight years, has agreed to the organization of the petroleum exporting countries (OPEC), to a throttling of the flow rates. The current OPEC President, Qatar’s energy Minister Mohammed Bin Saleh Al-Sada, announced the breakthrough in Negotiations in the Algerian capital, Algiers. The preliminary agreement, according to the daily production quantity is to be limited to 32.5 up to 33.0 million barrels a day. Currently, an estimated 33,24 million barrels are produced a day. In fact, the maximum limits will be introduced, which had repealed the OPEC a year ago.
The Oil-producing countries have been fighting for months against falling Oil prices. Nevertheless, it failed – in contrast to earlier times – for months all efforts to ensure that they have a shortage of crude oil on the world markets for rising prices.
rapprochement between Saudi Arabia and Iran
clouded Above all disputes between the regional rivals Saudi Arabia and Iran had hopes of a deal before. Oil prices rose immediately after the announcement of the deal. Background among other things, the strategy, new competitors – such as the shale gas industry was pushing in the United States – with the low prices from the market. The traditional mining countries, with perseverance, the competitive struggle for themselves to decide. At last, however, the fall in Oil prices was also in the rich Saudi Arabia to the economy. The government of Saudi Arabia had blocked previously also against exceptions for Iran, with whom the country wants to be in the Oil business after the lifting of the nuclear sanctions.
Saudi Arabia and Iran rings as regional powers politically to the dominance of the Gulf. The agreement reached seems to go back to a rapprochement between the two States. The Iranian oil Minister bids Chan Sanganeh said after the Meeting in Algiers, OPEC agreed to two and a half years of negotiations on measures to stabilize the Market .”OPEC has today made an extraordinary decision.”
rates of the individual countries has not yet been defined
how many barrels of each member country, its Oil production is throttling, however, is still unclear. This will be on the OPEC summit on 30. November in Vienna set, said OPEC President Al-Sada. Saudi Arabia, with a production of more than 10.7 million barrels per day, by far, the largest producer in the cartel and is thus approximately at the level of the Non-OPEC countries, Russia and the United States. The three countries together represent roughly a third of global Oil production.
The OPEC agreement came a surprise to many experts – especially as the energy Ministers of the participating States of the meeting in Algiers had subdued in the run-up to the expectations. The clearer the reactions on the world markets fell. The prices for a Barrel of crude oil climbed depending on the variety, by at least five percent.