OPEC confident in agreement on limiting oil production

OPEC production

OPEC productionOPEC expressed confidence that later this month will finalize the agreement on limiting oil production and rejected criticism for the impact of the organization. The statement comes on the background of record high production from the cartel members, which additionally dropped the oil prices by 8% for less than a week, keeping them below 45 USD per barrel. In October, OPEC reached production rate of 34.02 million barrels per day, representing an increase of 0.5%. The highest growth was reached in Libya, Nigeria, Iraq and Iran, which were excluded from the agreement on limiting oil production, due to continues conflicts and wars.

However, at the September meeting in Algiers, OPEC pledged to cut production by up to 2%, but postponed the details and exact value of decrease per country for the next meeting on November 30.

“We remain optimistic that the Algerian agreement will be accompanied by precise and decisive action by producers”, says the statement of OPEC, published in the monthly bulletin.

The statement of the organization came just a day after the US government announced that the reserves of oil in the country last week rose to record levels for the past 30 years. This shows that production surpass crude oil demand and that will not change soon.

Analysts changed their forecasts for oil prices, predicting that it will rise next year, but will remain at levels below 60 USD per barrel during the whole 2017. Last summer, the predictions were that oil prices will surpass 70 USD per barrel this year, a level which according to them will not be reached until 2018.

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