Oil recovers before the possibility of reduction of the offer of OPEC for 2019

The information revealed yesterday by the International Energy Agency (IEA), in which it was known that US crude oil production had once again increased, drove crude oil prices to a floor that , in the case of WTI, meant that its level was below US $ 50; However, on Thursday morning, the intention to reduce crude supply for 2019 from the Organization of Petroleum Exporting Countries (OPEC) was directly known.

As a result, the price of the US WTI reference barrel per barrel of oil recovered 1.33% to reach $ 50.96, while the European Brent rose by $ 0.57 to reach 59.33%. USD a barrel.

The Reuters news agency today revealed that his country wants more and more to reduce its oil production. It negotiates with the cartel manager, Saudi Arabia, on the timing and volume of the reduction. In addition, it was learned that Alexander Novak, Russian Minister of Energy, had met on Tuesday with the leaders of local oil producers, ahead of a meeting in Vienna between the Organization of Petroleum Exporting Countries (OPEC) and its allies on December 6 and 7, in which conditions would have been set for a decrease.

"Most people have agreed that we can not reduce immediately, a gradual process is needed, like the last time," an industry source told Reuters, asking for anonymity because it is forbidden for him to do so. Address to the media.

Saudi Arabia has suggested that OPEC and its allies cut their production by one million barrels per day from January 2019 to halt the price decline. If Russia applied the same proportion of reductions as in the existing agreement, its share in the reduction would be 166,000 barrels a day.

According to the IEA, US oil inventories rose by 3.6 million barrels last week, reaching their highest level in one year at 450 million barrels. This marks the tenth week, followed by an increase in US crude production, with local production reaching a record 11.7 million barrels a day.

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