OPEC has invited 14 manufacturers outside the group, which produce about 20% of the global oil, for talks this week in Vienna, aiming to achieve wider cooperation in reducing production. Russia has committed itself to reduce production by about 0.3 million barrels per day after OPEN agreed lowers its yields by 1.2 million barrels per day. The big producers, including Mexico and Kazakhstan, as well as relatively smaller producers like Bolivia and Uzbekistan were invited to the talks with ministers from OPEC in the Austrian capital on December 10.
The oil prices rose by 18% after OPEC reached a surprising agreement last week, which reduces the yield for the first time in eight years. This is the first agreement by the end of the 90s, which includes producers outside the cartel. The new production target of 32.5 million barrels per day is just under the evaluation of the group for oil demand for next year, which means that we need wider cooperation in order to significantly reduce the surplus accumulated over three years oversupply.
After Russia, Mexico is the largest producer invited in Vienna. Although production in the country is expected to fell by about 0.15 million barrels per day during the next year to 1.94 million barrels per day, because of the natural decline in production from aging fields. The country is not planning further cuts in production, said a representative of the Pemex last week.
Kazakhstan, which is the next biggest producer with a daily output of about 1.7 million barrels per day, will decide whether to reduce it after talks with OPEC, said the press service of the Energy Ministry in a statement of December 2. The country is not ready to freeze or reduce production as soon as started the project for the field Kashagan with estimated reserves of 50 billion USD.
Oman, which yields about 1 million barrels per day, is committed to join any OPEC agreement to reduce production by a maximum of 10%, said three sources from the country’s government on November 30.
The other invited countries are Bahrain, Colombia, Congo, Egypt, Trinidad and Tobago, Turkmenistan, Azerbaijan and Brunei. Together 14 countries are producing about 18.8 million barrels per day last year, which is 20% of global production.
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