Manuel Quevedo, the Venezuelan oil minister and president of the Opec conference, before the cartel’s meeting in Vienna. Photograph: Christian Bruna/EPA

Opec has agreed to limit its production level

Aminy Andawi
Business & Industry
Environmental Energy & Material
Jul 03, 2019
2172
In order to avoid a global oil price crash, Opec maintains its oil production limit for the next nine months. The deal to extend until March has been approved by the world’s largest oil-producing around the globe to cut 1.2m barrels of oil a day from the global market. The deal was made for the first time after the oil price crash in 2016.

Another meeting with the 14 countries has been set in Vienna this weekend to decide a structured response towards the rising of the US oil industry and the slowdown of the global economic status. This situation has become a concern for the market commentators as it could lead to a sudden prices drop.

Russia will lead Opec in seeking the backing of an alliance of large oil producers from outside the cartel at a meeting of the Opec+ on Tuesday. Vladimir Putin, the Russian president said that he had made an agreement with Saudi Arabia to extend the existing cuts until December 2019 or March 2020.

Iran will not stand in the way of the deal while the country faces tough sanctions from the US as the Iranian oil minister, Bijan Zanganeh said in Vienna that Iran will not leave Opec. However, he warned that the cartel would “die” if Russia and Saudi Arabia keep making unilateral decisions, as the cartel keep receiving pressure from Donald Trump to increase its output to make up for the lost oil barrels in Iran.

Source: https://www.theguardian.com/business/2019/jul/01/opec-maintains-oil-production-limit-to-ward-off-price-crash

Business , International