The results of the OPEC meeting led to the fall of oil prices in new York

The results of the OPEC meeting led to the fall of oil prices in new York

NEW YORK, December 5. /Corr. Igor Borisenko/. OPEC’s decision to raise a quota on oil production to the level of actual production resulted in a sharp $1,11 – lower prices for “black gold” on the new York Mercantile exchange. By the end of trading on Friday the price of oil WTI dropped to $39,97 per barrel.

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“The decision to increase the production volume reflects the consensus at the meeting, OPEC policy, according to which the price of oil should fall to a minimum in order to prevent the emergence of new suppliers from countries that are not members of OPEC”, – said the news service Bloomberg, an expert on energy strategy of the French Bank BNP Paribas Garrett Lewis-Davis.

On Friday, the OPEC Ministers decided to raise the quota to the level of real oil production. Currently the volume of production of “black gold” by OPEC countries is estimated to be 31-32 million barrels per day. As stated at the final press conference after the meeting, the President of cartel the Minister of oil of Nigeria Emmanuel IBE Cacique, the Ministers “has recorded the present level of production above the quota at 30 million barrels, and decided that the reduction does not meet the market”. “So the goal is current level, not 30 million barrels,” he said.

Over the past 18 months the level of oil production of OPEC-member countries, consistently exceeded 30 million barrels per day. In particular, in October it amounted to 31.4 million barrels. At the same time, according to the International energy Agency, the supply in the global oil market exceeds demand by about 2 million barrels per day.

OPEC. Help

September 14, 1960, five countries (Saudi Arabia, Venezuela, Iran, Iraq and Kuwait) agreed in Baghdad on the establishment of the Organization of countries-exporters of oil.

Currently, OPEC consists of 12 States: in addition to the five founders, Qatar, Libya, United Arab Emirates, Nigeria, Algeria, Angola and Ecuador (in 1992 left the organization because of disagreements on distribution of quotas on oil production, in November 2007 restored the membership). In the meetings of OPEC largest oil producing countries (Russia, Norway, Mexico, Azerbaijan, etc.) can participate as observers.

In January 1961 Charter was ratified by OPEC, according to which the main objectives of the organization become coordination of policies of member States in the field of oil production and targets – ensure regular oil supplies and the stabilization of the situation on the oil markets. In 1962, OPEC was registered at the UN as an intergovernmental organization.

The Supreme body of the OPEC conference convened, as a rule, in Vienna at least twice a year. At the conference the countries represented by the Ministers of the oil industry. Decisions are taken by consensus.

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© Ruslan shamukov/TASS

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