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Oil prices lost a fifth of their value in just one month after peaking at four in early October, under the combined effect of factors centered on an increase in oil prices. offer and fears of stagnant demand.
Dubai | Posted: 11 November 2018 at 10:22 | Updated 11 Nov. 2018 10:28
Photograph of Walter Siegmund (source: Wikipedia)
Major oil producers meet on Sunday In Abu Dhabi to consider returning to production cuts after a sharp drop in crude prices, fears of a 2014 crash have revived fears.
Oil prices lost a fifth of their value in just one month, after peaking at four in early October, under the combined effect of several factors. rising supply and fears of stagnant demand.
Brent crude fell below $ 70 a barrel for the first time since April, while New York's West Texas Intermediate (WTI) dropped below $ 60 a barrel, its lowest level. level in nine months.
The United States increased their shale oil production, while Saudi Arabia, Russia and others increased their crude inventories despite signs of slowing demand.
The decline also occurs when the effects of a more moderate than expected impact of US sanctions on Iranian oil exports. [19659008] "Prices have fallen against the steady rise in crude supplies from major producers, such as Saudi Arabia, Russia and the United States, more than offsetting the loss of Iranian barrels," he said. AFP Fawad Razaqzada, Forex.com badyst. Iran's sanctions not being as severe as initially feared, OPEC officials and non-OPEC producers could discuss this weekend the need for bring 100% compliance to the rules or risk a further drop in 2014 prices, "he said.
Energy ministers of major producers, Russia and Saudi Arabia, join other OPEC officials and their non-member counterparts for the Joint Ministerial Monitoring Committee meeting, which oversees production levels.
The world's second and third largest crude oil producers – after being exceeded by the United States thanks to shale oil – Russia and Saudi Arabia are at the heart of an alliance of producing countries that have managed to consolidate oil prices after the crash of 2014.
Thanks to a significant production. cuts starting in early 2017, oil prices rose from less than $ 30 a barrel to more than $ 85 a barrel in October, which greatly improved their revenues.
But producing countries reduced production cuts in June after signs
Saudi Arabia increased production by about 9.9 million barrels per day in May to about 10.7 million barrels barrels a day in October, according to the Minister of Energy, Khalid al. -Falih.
Kuwait, Iraq, Russia and the United Arab Emirates also increased their production.
Cailin Birch, an badyst at the Economist Intelligence Unit, announced that a slowdown in oil demand was beginning to appear in China, the world's largest importer. crude oil.
"The recent fall in oil prices reflects a combination of factors: On the one hand, signs of slowing demand for oil are beginning to appear, the GDP growth rate in China is starting to moderate" said Mr Birch to AFP.
The meeting, which will also be attended by the Petroleum Ministers of Kuwait, Venezuela and the host country, UAE, should not take a decision
The JMMC, a technical committee, should make important recommendations on production cuts at a key ministerial meeting in Vienna next month for OPEC producers and other producers.
Commerzbank, the second largest lender said Friday that oil producers had to act to prevent a free fall in prices.
"If they do not signal any intention to reverse the latest increase in production, oil prices are threatening to fall further," the bank said in a note.
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