OPEC and oil producers outside the cartel, at an informal meeting in September to agree on the freezing of oil production, according to analysts of the Bank Goldman Sachs. But I warn you that the freezing of production may not lead to the restoration of balance in the oil market, as it will continue to manufacture at record levels, according to Bloomberg.
According to analysts, possible freezing of production can be “counterproductive” for OPEC, if will lead to further growth and increased supplies of other producers. More effective for restoring balance in the oil market would be the resolution of the conflicts that have affected production in some regions, the report of the Bank dated 22 Aug.
A possible conclusion of the agreement after the failure of previous negotiations, analysts said Goldman Sachs, will demonstrate the willingness to cooperate of the new Minister of oil of Saudi Arabia. At the same time they doubt that Saudi Arabia and Iran will agree to unilateral freezing of oil production, as both countries continue to struggle to keep and increase its share of the oil market in the face of continued growth in oil demand.
In the continuing rivalry of OPEC indicated Monday the experts of the Bank Morgan Stanley. According to their findings, this competition creates too many obstacles and logistical problems” for the conclusion of a really meaningful agreement. Morgan Stanley admit the possibility that in September, countries will be able to conclude an agreement, but noted that the real impact of such agreements to market will be less than if countries agreed to a freeze in April.
Over the past months, Iran has managed to bring oil production almost to pre-sanctions levels, and in Saudi Arabia in July, it reached a historic high.
Earlier, The Wall Street Journal, citing experts warned about the possible destruction unfolding on the oil market balance due to him returning to shale oil producers. The return of the oil prices of mark WTI at $50 per barrel makes shale deposits profitable, and interviewed by WSJ experts fear that increasing production will end the oil rally.
In the course of trading on the ICE exchange on Tuesday, the price of a barrel of Brent oil for the first time since August 17 fell below $49. At a minimum, the price touched $of 48.51, which is 1.32% below the closing level on 22 August.