Homepage > Europe > Content of article

OPEC meeting soon to reach a production reduction agreement attracts attention

The Organization of Petroleum Exporting Countries (OPEC) National Ministerial Conference is scheduled to be held on the 6th. In addition to OPEC members of the Organization of Petroleum Exporting Countries, this meeting will include other non-OPEC major oil producers such as Russia and Kazakhstan. On the 5th, the Minister of Energy or Petroleum of the Gulf State first held an internal meeting; on the 6th, the OPEC Ministerial Meeting will be held; subsequently, the OPEC countries may also hold talks with Russia.

The meeting was held in an environment where international oil market control is very difficult. In the past two months alone, the international market crude oil price has plunged 30% from the beginning of October, the New York market crude oil price fell from 76 US dollars per barrel to the current US$ 53, and the North Sea Brent crude oil price fell from 86 US dollars per barrel. Up to about 62 dollars. Therefore, stabilizing the international crude oil market, maintaining oil price balance, and preventing oil prices from falling below $50 a barrel are the main issues that need to be resolved at this meeting.

According to the information disclosed before the meeting, Saudi Arabia hopes that at this meeting, countries can reach an agreement to reduce the daily output of oil by 1.3 million barrels from January next year. However, US President Trump has repeatedly expressed his unwillingness to reduce production by international oil-producing countries through public statements and personal social networks, and hopes that oil will maintain a lower price to promote the world economy. Due to the murder of Saudi journalist Kasuki, whether Saudi Arabia is in line with the United States in terms of crude oil production and price regulation has become a bargaining chip for the United States to decide on Saudi Arabia's future attitude. Therefore, whether the OPEC meeting can implement a substantial reduction in production under the pressure of the United States in accordance with Saudi Arabia's wishes is still uncertain. It is expected that the attitude of non-OPEC major oil producers, Russia, is crucial to whether this meeting can reach an agreement. At the G20 summit held in Argentina last weekend, the Russian President and the Saudi Crown Prince announced that they will continue the oil production agreement in 2019, and Russia agreed to implement production reduction under the current circumstances. As a result, the oil price in the international market rose on December 3. (CCTV reporter Tian Xiaochun)

Latest International News