Thursday , May 13 2021

The return to oil production in 2019 can not be ruled out: the OPEC source



The return to oil production in 2019 can not be ruled out: the OPEC source

OPEC's Alliance and non-member organization returned to a decline in oil production in 2019, OPEC's source is quoted on Wednesday as a way to prevent a potential surplus supply that might affect prices.

The source replied to the report of the Russian news agency TASS that Saudi Arabia and Russia have started bilateral talks on potential reductions in oil consumption next year.

OPEC, led by Saudi Arabia and its allies, including Russia, in June decided to relax the pressure reductions that have been in place since 2017, following the pressure of US President Donald Trump, to reduce oil prices and offset the loss of supplies for sanctions against Iran.

The other delegate from the oil exporting organization asked if the debate was pointing to a return to cut supply in 2019, saying "Of course not the other way round."

Oil prices have declined due to rising supplies, although Iranian exports are expected to fall due to new US sanctions. The market is also affected by forecasts for surplus supply in 2019 and a decline in demand.

Brent crude oil dropped to $ 71 on Tuesday, after four years in the highest level in October above $ 86 per barrel. Prices on Wednesday rose above $ 73, confirmed by the TASS report.

Some OPEC members and allied ministers will meet in Abu Dhabi on Sunday to discuss the market and the prospects for 2019.

The committee could make a recommendation on the 2019 production policy for the next OPEC petroleum minister and non-cartel decision-makers, said the third source of the group. This meeting will take place from 6 to 7 December in Vienna.

"Any serious discussions will be held in December," said the source.


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