Opec + meets in Azerbaijan in a context of growing tightening of oil markets

Opec producers and those who are not, are in compliance with a exit restriction agreement will meet in Baku, capital of Azerbaijan, Sunday and Monday in the midst of soaring crude prices this year.

The meeting follows the promises made by Saudi Arabia and the United Arab Emirates must make bigger cuts to rebalance the oil markets. Price in November plunged dramatically to about 30% of the record of $ 86.29 a barrel the previous month, its highest level in three years.

The Brent benchmark reached $ 67.55 a barrel last Wednesday, its highest level this year, sentiment has become bullish as a result of the increased market tightening.

Venezuela's supply dropped to only about 1 million barrels a day in February, according to secondary sources cited by OPEC, as the country continues to suffer from declining production due to ongoing political unrest.

Opec +, commonly known as the rebalancing of the Allied business market, is generally expected to extend its production cuts until the second half of the year.

OPEC, led by Saudi Arabia and non-opposing compliant producers led by Russia, agreed in 2018, reduce production by 1.2 million barrels a day for six months from January.

While the alliance was not the exact conditions of the reduction, they decided to meet in Baku before their general meeting mid-April in Vienna, Austrian capital. Russia should also further reduce its production in the months following criticism that the country was not sufficiently in line with the agreement.

Moscow reduced its output from 82,000 b / d to 11,336 bbl / d in February, according to data from the CDU-TEK unit of the Russian Ministry of Energy.

Saudi Minister of Energy, KhalId Al Falih said last week that it was unlikely that the alliance will reverse the deal to produce less oil than usual.

Saudi Aramco, a state-owned oil producer, will maintain its April allocation at 9.8 million bpd, while the world's largest exporter seeks to maintain its supply.

The UAE also committed to "exceed" their compliance with the production reduction pact with the production-cut agreement. United Arab Emirates Energy Minister Suhail Al Mazrouei in a tweet Last week, the country "would continue to apply a voluntary adjustment of its production" until markets are rebalanced.

UAE production at the end of January, according to secondary sources cited by OPEC, was 3.078 million bpd.

The alliance convention in Azerbaijan also fits in the context of US pressure to force producers to lower prices.

US President Donald Trump has repeatedly criticized OPEC by saying that the organization was artificially increasing oil prices. He tweeted in February that the alliance should "relax and relax" as oil prices "get too high".

Trump has lobbied for lower prices, even as domestic production in the US has reached record levels, making the country the world's largest producer of crude oil.

The drop in oil prices is appealing to US voters and consumers, Mr Trump tweeted that the price drop at the end of 2018 was a "tax cut for America and the world".

The rise in the US supply will continue to weigh on the markets with the International Energy Agency. saying in his 2019 Oil Report announced last week that it would account for 70% of the increase in global production capacity until 2024, an additional 4 million bpd.