Oil market seeks to unite efforts to control supply

Oil market seeks to unite efforts to control supply

29/08/2016 source “Diario Economico”

With a situation of low prices in the end of last week, the main oil producing countries seek a consensus and work together to achieve stability in the market, in the middle of divided positions.

The oil minister of Saudi Arabia, Khalid Al-Falih, recently opined that it is not necessary to reduce the supply of crude oil to the market, since it will depend solely on the laws of supply and demand.

This position moves away from an agreement to be established at the next meeting of the Petroleum Exporting Countries Organization (OPEC), which will be held in Algeria in September, where will participate major producers as Russia, to carry out an action joint to make rise the low prices.

The market acknowledge an excess of supplies from more than two years, a trend that this week caused losses of more than 3%, a figure that is almost its biggest weekly decline in a month.

The price of Brent fell 31 cents today to be sold at 49,36 Dollars a barrel, while West Texas Intermediate fell 14 cents to 47,19 Dollars per barrel.

The Minister of Oil of Iran assured, for his part, that the country will cooperate with the other producers to stabilize oil markets, if and when are respected the singly decisions to recover shares in the international market.

However, the secretary general of OPEC, Mohammed Barkindo, called for the adoption of concrete measures to reduce the current pumping levels and to manage the production and thus be able to balance the prices.

Reaching a consensus on the measures to be taken to balance the prices and stabilize the market will not be easy given the absolute disparity of positions, but the way to reduce losses will, sooner or later, go through there.