World Wide Oil Production C U T !!!
The Organization of Petroleum Exporting countries (OPEC) has decided to cut the production of oil by 1.5 million barrels a day at a meeting in Vienna. Which is an understandable reaction, because the prices have fallen more than 50% in compare to the peak of over 147 $/barrel in July. The chairman of the OPEC organization Chakib Khelil says that: ” it was a necessary measure and the stock market will only be helped by the move”. The decrease of oil prices and supply don’t effect the financial market, but the financial market effect the oil prices and supply. Specialists say that the optimal price per barrel would be between 70 and 90 $/barrel. In order
for many exporting countries to be at a break even the oil price would have to be at the point not below 40 $/barrel, which means that most of the biggest oil exporting countries such as Bahrain, Oman, Qatar are still on the safe side. Recently now the oil dropped below 60 $/barrel. However when the OPEC approached a non-member oil exporting countries, such as Russia, to cut its production, and received the negative response from the Moscow. Most oil producing countries are on the safe side, except the Russia, because its 70$/barrel, which is a break even point !!!
OPEC includes Algeria, Angola, Venezuela, Indonesia, Iran, Iraq, Qatar, Kuwait, Libya, Nigeria, United Arab Emirates, Saudi Arabia and Ecuador. Sixty-seven per cent of the world’s known reserves of oil are located in these countries. At the previous session on the 10th of September the organization made the decision to cut production by 520,000 barrels a day. However it did not work, and the new reduction seems to be not so effective as the first try.
The Organization of Petroleum Exporting countries (OPEC) has decided to cut the production of oil by 1.5 million barrels a day at a meeting in Vienna. Which is an understandable reaction, because the prices have fallen more than 50% in compare to the peak of over 147 $/barrel in July. The chairman of the OPEC organization Chakib Khelil says that: ” it was a necessary measure and the stock market will only be helped by the move”. The decrease of oil prices and supply don’t effect the financial market, but the financial market effect the oil prices and supply. Specialists say that the optimal price per barrel would be between 70 and 90 $/barrel. In order
for many exporting countries to be at a break even the oil price would have to be at the point not below 40 $/barrel, which means that most of the biggest oil exporting countries such as Bahrain, Oman, Qatar are still on the safe side. Recently now the oil dropped below 60 $/barrel. However when the OPEC approached a non-member oil exporting countries, such as Russia, to cut its production, and received the negative response from the Moscow. Most oil producing countries are on the safe side, except the Russia, because its 70$/barrel, which is a break even point !!!OPEC includes Algeria, Angola, Venezuela, Indonesia, Iran, Iraq, Qatar, Kuwait, Libya, Nigeria, United Arab Emirates, Saudi Arabia and Ecuador. Sixty-seven per cent of the world’s known reserves of oil are located in these countries. At the previous session on the 10th of September the organization made the decision to cut production by 520,000 barrels a day. However it did not work, and the new reduction seems to be not so effective as the first try.
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