On November 30, OPEC countries finally signed an agreement to limit oil production. For the first time since 2008, countries have agreed, albeit with reservations.
The basis for the conclusion of the agreement was the constant fall in oil prices on the world market. So, from January 1, 2017, each OPEC member country undertakes to produce no more than 1.2 million barrels of oil per day. Iraq was made an exception, as the country must rebuild the economy, and oil is practically the only constant source of Iraq’s profits. This country can produce up to 3.9 million barrels per day.
But what about non-OPEC members? OPEC countries are counting on their support, now each country can produce 600,000 barrels per day.
Russia was not invited to the meeting. And for good reason, since it is not part of OPEC. But even this country supported the OPEC initiative and pledged to limit oil production to 300,000 barrels per day.
The market immediately responded to the fact of negotiations with a sharp increase in the price of oil, to $ 55.02 per barrel. But this is not the limit, the price is projected to rise to $ 60 per barrel. And then?
Then you should wait for the correction. And it is also worth considering an important fact – the United States has not yet spoken out either in support of the agreement or against it. Although for this country there is a good chance to make money.
