Totgesagte live longer. This wisdom also seems to apply to the Oil cartel Opec. For the first time in eight years, the major Oil-producing countries have agreed to your funding reduce. From 1. January to daily will only be funded to 32.5 million barrels, 1.2 million barrels less than in the past, said the President of the organization of petroleum exporting countries (Opec), the Qatari energy Minister, Mohammed bin Saleh al-Sada after a meeting of the organization in Vienna. “The market must be brought into balance.” A Barrel is 159 liters.
The Qatari energy Minister, Mohammed bin Saleh al-Sada announced the historic agreement reached in Vienna
source: REUTERS/X00316
you can Also use Russia as main oil country outside of the cartel wants to join Opec and its promotion to reduce by 300,000 barrels a day.
Totally surprising agreement, the price of Oil shoots up
The agreement has been reached for the majority of experts and the financial markets completely by surprise. According to fierce the reaction was. Brent oil shot up by almost nine per cent to over 50 dollars per Barrel in the level. The prices of US Oil WTI soared by more than ten percent.
at the same time, the currencies and bonds of oil-producing countries increased considerably. The ruble rose in price, for example, by 1.7 percent. “Opec has all taught prophets of doom better,” says Neil Wilson, a strategist with the investment house ETX Capital. “Opec is still alive and is relevant.”
Indeed, had discussed the cartel in September in Algiers, a reduction to a daily 1.1 to 1.2 million barrels. However, the agreement had been pulled the last of the Opec-members of self-doubt. In particular, with an agreement between the major producing countries Saudi Arabia and Iran, no one has expected. Until recently, the historic rival had delivered a fierce dispute over production quotas.
Saudi Arabia bears the brunt of the agreement
At the end of the Saudis even accepted that Iran will get, in spite of the overall Opec cut of a derogation and its delivery rate may continue to expand. Tehran had to go back due to the Western sanctions its production.
Actually, the Saudis to bear the brunt of the agreement. The sheikhs need to go back to their daily production amount to almost a half a Million barrel. Also, the second-largest Opec producing country in Iraq that had fought against throttling, has now committed to bring the 300,000 barrel less from the ground.
According to the agreement reached by the Opec Oil price increases. And this is only the beginning
source: infographic not flood The world
The latest agreement means only in certain ways, Overcoming historical rivalries, but also a sharp departure from the in the year 2014, on the Initiative of Saudi Arabia, initiated in strategy, the markets literally.
the price of Oil can rise in 2016 to $ 60 per barrel
in order for new competitors, in particular Fracking companies in the USA, should be out of the market. Since then, the daily promotion has been extended 13 per cent to around 34 million barrels. In particular, Saudi Arabia and Iran pumped more and more out of the ground.
In the Wake of the Oil price sank from more than a hundred dollars per Barrel in June 2014 to below $ 30 in the beginning of this year. The price decline has made it increasingly also to create the traditional oil-producing countries.
consumers could look forward to, meanwhile, is on low fuel and Heating costs. Now the era of ultra-cheap Oil, with prices of around 40 dollars over at least appears to be. The Opec has given itself an internal target of $ 55, called it from delegation circles of the negotiating partners. Oil could go up to the end of the year even to 60 dollars per barrel, predict the analysts of the Norwegian Bank DNB.
price of fuel is likely around 10 cents per litre
tightening Should keep the Bank, could increase the price of gasoline from a current average of 1.31 Euro per litre to just under 1.40 euros.
However, the reduction is limited to six months. At the next regular meeting at the end of may, the agreement should be extended.
“The Deal is for the Opec members to be very attractive,” said Goldman Sachs Analyst Jeff Curie, opposite the financial service Bloomberg. Thus, the Ölflut could be contained. First of all, the overfilled Oil would be vacated-bearing return to normal.
to be on the rise As far as the quotes, depends on two factors. To a must be, how much the countries will adhere to the new quotas.
Fracking companies are likely to deliver more Oil
In the past, many funding Nations had the Opec specifications to run again and again. It is also not clear whether the price increase brings new players to the market. For example, many Fracking could bring companies in the USA now more Oil out of the ground. Also canadian oil Sands could pay for itself economically.
in this respect, the true test is the Opec. The countries do not have to adhere to the quotas, but, where appropriate, will continue to reduce, should pump up the competition more in the future. “What has now been announced is very positive for the price of Oil and Opec,” says Giovanni Staunovo, an Analyst at UBS. “But January is still far away.”
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