Negotiations Novak and OPEC ended with the determination to freeze oil production at the January level

Negotiations Novak and OPEC ended with the determination to freeze oil production at the January level

MOSCOW, February 16. Russia, Saudi Arabia, Qatar and Venezuela are willing to freeze oil production at the January level, if other countries-oil producers will join this initiative. This was stated by Minister of energy Alexander Novak after the meeting in Qatar, his words are given in the message the Ministry of energy of the Russian Federation.

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“Following the meeting, four countries – Russia, Saudi Arabia, Qatar and Venezuela – are willing to freeze oil production at the January level, if other manufacturers will join this initiative”, – said Novak on the results of the negotiations.

Earlier, the Minister of energy of Russia Alexander Novak said that the subject is possible in February of consultations of representatives of the OPEC and outside it is the Union of oil producers could be production cuts. Previously, the head of “Transneft” Nikolay Tokarev noted that the initiative of such consultations were made by Saudi Arabia.

Brent crude oil price reacted by falling below $34 a barrel. Earlier, the price of this brand of oil grew by 5.5%, rising above $35 per barrel.

Qatar confirmed the agreement

Qatar also confirmed that Emirate, Russia and Saudi Arabia reached an agreement on “freezing” of oil, said the channel “al Arabiya”.

According to him, “Qatar has confirmed an agreement with Russia and Saudi Arabia about “the freezing of oil production at the level of January.”
However, as has informed the representative of the Ministry of oil of Qatar, “the term of this agreement is the approval of other countries-oil producers”.

According to the oil Minister of Qatar Mohammed bin Saleh al Sada, low oil prices were a positive for the world. In addition, Qatar will monitor the agreement on freezing of oil production.

Riyadh hopes that the producing countries would agree to freeze production of oil

Saudi Arabia, in turn, expressed hope that all countries-oil producers will agree to freeze production levels, said the head of the Ministry of oil of the Kingdom Ali al-Nuaimi after the meeting.

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“We hope that the countries belonging to OPEC and non-members, will support this initiative”, he said after the talks.
Ali al-Nuaimi has called the latest meeting successful. “The meeting in Doha the Ministers of the four countries was very successful,” he said, reports channel “al Arabiya”.

Turning to the issue of a possible “freezing” the production of raw materials at the level of January al-Nuaimi remarked that the measure “complies with the requirements of the market.” In his words, “the economy of Saudi Arabia without problems will cope with the current oil prices on the world market”.
Earlier it became known that Russia, Saudi Arabia, Qatar and Venezuela are willing to freeze oil production at the level of 11 January.

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.

Results of the 168 th meeting of the OPEC

In this case, the results of the 168-th meeting in Vienna on 4 December, the Ministers of oil of the OPEC has not taken a clear decision on production quotas because of the position of countries that are not members of the organization.

The talk about reducing or freezing world oil production to normalize prices going for a long time. The results of the meeting of the cartel in December led to a sharp decline in prices for “black gold”. The Minister of oil of Iraq has noticed that the decision was taken because of the reluctance of countries outside the cartel, including Russia, to reduce their prey.

Currently the volume of oil production by OPEC members in otzyvaetsya 31-32 million barrels per day. The previous quota was 30 million barrels per day. As was stated by the Minister of oil of Iraq, the decision on quotas was not adopted because of the position of countries outside the cartel. In his opinion, to stabilize oil prices, all countries should set limits on production. Due to the lack of such restrictions has dropped the prices of oil in the world up to the present level, stated the Minister of oil of Iraq.

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