Thursday, September 29, 2016

The price of oil passed the 49 per barrel – ABC News

Through the night increased the price of oil with 6 per cent. At 2-the time it reached the price of nordsjøolje 49,05 dollars a barrel. The price fell Thursday morning to 47,99 per barrel. However, it is still far above the roughly 46 dollars it was in advance of the meeting Wednesday.

For american light oil was the development equivalent, with a peak of 47,40 per barrel. Rising oil prices also helped to lift energiaksjer, and thus also leading stock exchanges.

November meeting

OPECs oljekutt is estimated to be between 240.000 and 740.000 barrels daily. The OPEC countries ‘ total oil production to be between 32.5 million and 33 million barrels per day. Details about how big the cuts to each member state to take, is clear on the OPEC meeting in Vienna 30. november.

Saudi Arabia’s oil minister Khalid al-Falih says that production in Iran, Libya, and Nigeria should not be covered, as long as these countries keep the production on a “meaningful level”.

see also: if you need to cut 300 employees

More reasons

the Cause of the OPEC agreement is composed, the mean oljeanalytiker Thina Margrethe Saltvedt, Nordea Markets.

– first, Iran has already increased his production much until now in the year after the sanctions against the country were removed, so the country is now closer to its production target of 4 million barrels per day. For the other has the oil price been lying lower for longer as a result of that the demand for oil in the great oljekonsumerende countries like China and India have begun to show svakhetstegn, ” says Saltvedt to the NTB.

Still flooding it out with the oil from oil producers outside OPEC, such as Russia, where it has reached a record high level of production, as well as Canada and Norway, so that the process to get the market in balance and to get up the oil prices have taken much longer than expected, she says.

– third, there is now someone new who sits at the helm and manages the oljestrategien in Saudi Arabia, and this may also have had an effect, ” says Saltvedt.

see also: Helrød Monday on the Oslo stock Exchange

Iran

Iran has increased the production much, with the green light from OPEC because Iran for many years has been subject to sanctions and the need to rebuild the economy. The decision on a unified OPEC cuts now is therefore not alone an attempt to slow down Iran, believes Saltvedt.

The main goal now is to speed up the process of getting the market in balance and thus get oil prices up. There is little doubt that the oil price has fallen far more than what Saudi Arabia had expected, that non-OPEC producers, especially skiferprodusenter, has been more resistant to lower oil prices in the short term than what OPEC expected and that prices have been lying lower longer than expected, ” says Saltvedt.

shale oil

the Production of american shale oil in the last year have dropped significantly.

Higher oil prices will lure skiferprodusenter pretty fast back to the market, especially if oil prices stabilize at over 60 dollars a barrel, think she is.

It will again lead to considerably increased american skiferproduksjon, which in turn will put a lid on oljeprisoppgangen in the medium term, ” explains oljeanalytikeren.

“I think OPEC has realized that they have lost some of the control on the oil market because of the flexible skiferproduksjonen,” says Saltvedt.

see also: Over 300 oljeserviceansatte be taken out in the strike

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