OPEC+ did not give the world more oil than promised

18:07 06.11.2021 3930

https://oilgas.gov.tm/storage/posts/3279/original-16184d79db70ae.jpeg

 OPEC+ ministers on Thursday unanimously decided to follow the plan and not increase oil production more than planned.  Consumer pleas for additional volumes remained unanswered.  OPEC+ explains this by forecasts of a future drop in demand, Interfax reports.

 The price of oil has risen by about 1.6 times since the beginning of the year – from $ 50 to $ 80 per barrel, which raises consumer concerns about the recovery of economic growth after the pandemic.  The largest oil consumers – China, India, the United States – turned their pleas to the OPEC+ countries, which regulate oil production in order to balance the market, with a request to increase production.

 OPEC+ has been gradually increasing its oil production by 400 thousand barrels per day every month since July in order to neutralize the restrictions of 9.7 million b/d taken at the height of the COVID-19 pandemic, and meets monthly to «fit» the track  following the market situation.

 According to Interfax, a possible increase in oil production was actively discussed by the OPEC+ participants, but the risks of a drop in oil demand, in particular seasonal, as well as the risk of the spread of the «delta» strain became factors «against» such actions.

 But in order not to seem cruel to the market, OPEC+ organized a press conference, where, in addition to the usual regulars – representatives of Russia and Saudi Arabia – the oil ministers of the UAE, Nigeria, Kuwait, Mexico, Azerbaijan also spoke.  Each spoke about the cohesion and the factors that did not allow to satisfy the current needs of consumers.

 Nigeria's oil minister Timipre Silva said that there is no shortage of supply on the market, and OPEC+ does not need to change its plans.  Keeping the plan «is the best solution,» he said, and the market must continue to be monitored.

 According to Kuwaiti Minister Mohammed Al-Fares, according to all forecasts, in 2022 the oil market will be in surplus.

In turn, the Minister of Energy of the UAE Mohammed Al-Mazrui noted that an oversupply in the oil market could arise as early as the first quarter of 2022.  «Therefore, the decision to maintain the rate of recovery in production in December is justified,» he said.

 Saudi Arabian Energy Minister Prince Abdulaziz bin Salman confirmed that negotiations with consumers were underway.  But most of all, of course, were interested in negotiations with the United States, whose President Joe Biden accused OPEC+ of rising fuel prices.  However, earlier Abdulaziz bin Salman retorted that the rise in fuel prices in the United States is associated with the rise in prices for ethanol, which is added to gasoline, and an increase in oil imports will not help here.

 “As for the United States, yes, we had negotiations at all levels, and we still believe that we are doing the right job,” the minister confirmed at a press conference after the OPEC+ meeting.

 According to him, the decision to keep the decision to increase oil production by only 400 thousand bpd was made «in the interests of all», and also because, according to forecasts, in December, the growth of commercial oil reserves will begin, which will continue throughout the first quarter.  In particular, because OPEC+ will increase oil production, while oil demand usually slows down in winter.  «Just think, OPEC+ will add more than 1 million bpd in December, January and February – this will already be enough to cover the demand,» said the Minister of the Kingdom.

 In general, Abdulaziz bin Salman called for consumers to express their wishes about the need to increase oil production for 3-4 years in advance, since producers need clear signals to increase investments in increasing production.

Other articles
1613854c4b5173.jpeg
New project for the development of gas fields has been launched on the Bagtyyarlyk contractual territory

Construction of onshore facilities for gas fields in the western block of the Bagtyyarlyk contract area has begun. It is being developed by the «Amu Darya» gas company of the China National Petroleum Corporation (CNPC) in accordance with the Production Sharing Agreement, China Petroleum News, China Power News and other PRC media report.


1631f48079916a.jpeg
The Results of Eight Months Reviewed

Today, at the central building of the Oil and Gas Complex of Turkmenistan, a reporting meeting, devoted to the results of the work done over the past eight months of the year “The Era of the People with Arkadag”, was held. The meeting discussed the tasks set by President Serdar Berdimuhamedov before the oil and gas complex at an extended sitting of the Cabinet of Ministers, held on September 9 via digital video link and devoted to the results of the work done on the socioeconomic development of the country in January-August this year.


1613855d94346d.jpeg
The success of geophysicists is the result of innovation implementation

According to the results of seven months of this year, the amount of work performed on the management of «Turkmennebitgeophysics» of the State Concern «Turkmennebit» was more than 44 million manats. This result exceeds the planned figure for this period by 5.3 million manats.


16136fbf8226cc.png
Aviation and automobile fuel was sold to foreign buyers at the auction

Last week, 20 transactions were registered at the auctions of the State Commodity and Raw Materials Exchange of Turkmenistan.


1661fbb48683a2.jpg
The Tejen-Mary section of the Ashgabat-Turkmenabat highway has been put into operation in Turkmenistan

On Wednesday, April 17, with the participation of President Serdar Berdimuhamedov, a solemn ceremony of commissioning the Tejen-Mary section of the Ashgabat-Turkmenabat high-speed highway took place.