If Russia accepts the offer and OPEC will reduce oil production, then the empty niche will instantly take Iraq, Saudi Arabia and Iran, I am sure the Executive Director of the Association of traders NACCSA Michael Moore.
WASHINGTON, 27 Jan –. Executive Director of the Association of traders NACCSA Michael Moore stated that Russia needs to think very hard before you sit down at the negotiating table with the countries of the OPEC on reduction of oil production.
Thus Moore commented on the proposal of the head of OPEC Abdullah al-Badri.
The organization of countries-exporters of oil of the OPEC on Tuesday made a loud statement aimed at the establishment of the Alliance with Russia and other oil-producing countries. The purpose of this Covenant must be to reduce production and stop the fall of prices for raw materials, reported The Telegraph.
“Very tactfully was to offer Russia as the largest producer, to cut production. But as soon as she does, in her niche immediately jumps Iraq, Saudi Arabia, Iran,” says Moore. He therefore proposed not to hurry with the decision, as the expected rebalancing of supply and demand for oil, because it is less cost-effective sources of energy such as coal or alternative energy sources, before the crisis there was due to the subsidies.
Oil prices continued to rise Tuesday, mark WTI rose above 32 dollars a barrel and Brent crude is above $ 33 per barrel, according to AFP. As of 20.38 MSK, the price of April futures on North sea petroleum mix of mark Brent has grown on 5,75% to 33,11 per barrel. The price of March futures for oil of mark WTI has grown 5.55% to 32,02 USD per barrel.
Growth in oil prices contribute to the statement of the head company Saudi Aramco Nasser Amin (Amin Nasser). According to him, oil prices by the end of 2016 will increase because high-cost producers leave the oil market. Demand, he predicts, will also increase by more than 1.2 million barrels per day in 2016. Meanwhile, Russian Deputy Prime Minister Arkady Dvorkovich said that Russia in the current situation can support the current level of oil production, but long-term trend of lower prices may be reduced.