OPEC decided on the production quotas because of the position of countries that are not members of the organization

OPEC decided on the production quotas because of the position of countries that are not members of the organization


VIENNA, 4 December. /Corr. Maria Todorova/. OPEC Ministers decided to raise the quota to the level of real oil production. This was stated on Friday at the final press conference after the meeting, the President of cartel the Minister of oil of Nigeria Emmanuel IBE Cacique.

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“If you want, can supply the present,” he said following the conference that was perhaps the first in a long time, when the quota settings were not announced officially.

Currently the volume of oil production by OPEC countries is estimated to be 31-32 million barrels of oil per day.

“Recorded the present level of production above the quota at 30 million barrels, and decided that the reduction does not meet the market. Therefore, the aim of the current level, not 30 million barrels,” he said.

The ceiling is not defined

At a separate press conference, a representative of one of the countries participating in OPEC, oil Minister of Iraq Adel Abdel Mahdi told reporters that OPEC has kept quotas at undefined level, they are about 30-31 million barrels/day.

“We can’t call a certain number. But OPEC came to a joint decision – ceiling (quotas) is not defined. We can say that this is about 30-31 million barrels per day,” said Mahdi.

As said the Minister of oil of Iraq, the decision on quotas was not adopted because of the position of countries outside the cartel. “Why the ceiling is only at OPEC? It is not Russia, America, anybody,” he said. According to the Minister, for the stabilisation of oil prices, all countries should set limits on production.

He stated that due to the lack of such restrictions has dropped the prices of oil in the world to the current level.

Iran comes back, it’s time to reconvene

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According to the President of cartel Cacique, the market situation may demand convening of an extraordinary conference before OPEC is scheduled for June 2 regular meeting. Among the reasons for Cacique called price fluctuations and uncertainty with options returning to the market of Iranian oil after removing its sanctions related to its nuclear program.

“Iran’s coming back, but we don’t know when he will return, we will need to take it, one way or another, the production volume changes, therefore we decided to postpone this decision until the next meeting when it will be easier to determine the figure,” he said.

Mahdi also said that such meeting is necessary.

As reported, Russia might take part in the expert meeting of OPEC countries and countries outside the organization in mid-December.

The global problem should be solved all the world

On Friday after the announcement of the decision of the OPEC, the Minister of energy Alexander Novak said that “the market will adjust the situation associated with balance of supply and demand”. In his opinion, “it would make more sense to do the opposite – to align production to the quota, which was established”.

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No officially announced the parameters of the President of the OPEC quota Cacique explained the changing situation on the market. “Historically, the expectations are that OPEC sets the amount, but the world has changed, we need to look at the parameters of a sustainable pricing, the production of countries outside OPEC,” he explained.

The Secretary General of cartel Abdalla Salem al-Badri, in turn, noted that independent producers are only now realizing the consequences of low prices for the economy. “The problem with price was that it fell sharply and only now realize its impact on the economy and the level of production,” he said. “I think this year and next year will understand the contribution they can make,” – said al-Badri.

Cacique also added that the cartel is now ready to discuss coordination in the market with countries outside the cartel. “They were looking for a stable path,” he said.

At the previous OPEC meeting, which was held in June, the members of the cartel decided to keep production quotas oil unchanged at 30 million barrels per day, despite a sharp drop in world oil prices.

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