The growing need for oil pushes Saudi Arabia to lead the stability of global production

A report from the Brookings Institute of Studies of the United States stated that the meeting of the OPEC on January 22 in Vienna had attracted more attention than usual, OPEC oil and foreign cooperating countries, such as Russia, agreed to increase production in response rising oil prices since 2014, and the high-growth US oil production would change the ideas of OPEC ministers.
Saudi Arabia and Russia stress the importance of maintaining close coordination between the two countries, in the interest of producers, consumers and the global economy, to reflect 39; target agreed to adjust the average gross commitment to 100% in accordance with the statements of non-OPEC countries, Technical Cooperation for drafting and proposing appropriate measures to the Joint Ministerial Committee for the control of oil production.
The report points out that several circumstances have caused the tightness of the oil market and high prices, as the need for global oil has increased since OPEC and some oil-producing countries agreed to reduce their production by the end of 2016. Meanwhile, the decline in Venezuelan oil production, the national economy, pointing out that about 360,000 barrels of additional oil per day of production have been cut in the Canadian oil sands, indicating that the destabilization of the country's oil sands has resulted in the loss of oil. Oil supply can be produced from anywhere and anytime.

Sanctions on Iran
"The market is also anticipating significant declines in Iranian oil exports in the coming months due to new US sanctions that will come into effect in November," the report said, adding that the Trump administration is taking more stringent measures than the US Old Obama administration. Any concessions on sanctions secondary to those who import Iranian oil.
Deficit
The report states that "only unused capacity or strategic quotas are able to compensate for oil supply shortages, with Saudi Arabia being generally the main supplier of production capacity, with other countries. like the UAE, Kuwait and Russia ".
Companies that capture oil and gas in the United States do not have production capacity in reserve stocks because this is not an economic logic, but US production may change the US economy. OPEC equation because it changes important aspects of conventional oil production.
The report points out that conventional oil projects require years of pre-investment for primary oil production, conversely, narrow oil wells can be drilled and oil production in a few months, making sources of rapidly growing supplies more sensitive to oil fluctuations.
Modify the production method
The report cites a number of important positives for US oil production, as it is likely to change the way OPEC producers are considering reacting to high oil prices, noting that in recent days, members This meant that narrow markets and high prices could last for years. Today, US oil production can react more quickly to market conditions, which means that shortages will not last long and if oil ministers do not agree to increase production, they understand that their usefulness will be short-term and that they will abandon their participation. When US production responds in 6 to 9 months.
The report concluded that OPEC members understand that global oil will not be as important as today, pointing out that this fact indicates rising production in narrow markets, and that the question of selling oil now Is it a better strategy than saving for another time when oil can be worth less?

The implications of redemption
At the top of the global stability of oil.
Taking advantage of the oil phase before the fall of prices.

Justifications for the Oil Shortage
The imposition of economic sanctions on Iran.
The decline of Venezuela's production.