Completion strategy report, OPEC postponed because of disagreements

Moscow. November 9. The organization of countries-exporters of oil (OPEC) has postponed the completion of the internal report on long-term strategy because of disagreements between countries, writes The Wall Street Journal. Saudi Arabia is not going to change its policy on the world oil market, says Financial Times.

The report was planned to finish by Wednesday, so after discussions at the expert level to submit it for approval by Ministers at the forthcoming OPEC conference. However, the representatives of the countries could not agree on the wording.

Algeria, Iran, Venezuela would like to see the wording according to which the organization achieves the maximization of export earnings of member countries and seeks to restore their ability to impact on the level of world prices for oil and volumes of its extraction.

Another position, supported by the Secretariat and Saudi Arabia, is that the goal of OPEC is the formation of “fair” oil prices, writes The Wall Street Journal.

The strategy report is prepared every five years and formulates goals and prospects of the organization.

Discussion of the strategy may further complicate the work is scheduled for 4 December for the next conference of OPEC. The organization, despite the collapse of prices in the past year have left the quota for oil production at 30 million barrels per day (b/d), while the countries of the cartel in fact exceed this figure for the past year and a half.

Algeria and Venezuela are among the OPEC countries seriously affected by the lower oil prices, decreased during the past 12 months, more than 40%.

Meanwhile, Saudi Arabia confirmed at the weekend that it would continue previous policies, while maintaining high level of production to protect their share of the world oil market.

Officials of Saudi Aramco told the Financial Times that the question of the possibility of reducing the production of raw materials is not discussed, and that the current policy of Riyadh, will give an effect after a year or two, when oil prices will recover against the background of renewed demand.

On Monday after three days of decline of oil began to rise. By 8 o’clock Moscow time, the contracts on Brent crude oil rose 0.8% to $47.79 per barrel.