America is trying to persuade Russia to increase oil production to calm prices.. What about the position of OPEC Plus members?
The Russian Foreign Ministry said today, Thursday, that the United States is trying to persuade Russia to increase oil production in an effort to lower global prices, Interfax news agency quoted the Russian Foreign Ministry as saying.
The White House said on Tuesday that the United States will release 50 million barrels of crude from the US Strategic Petroleum Reserve
To help reduce oil prices, which will begin to be introduced in the market between mid- and late-December.
Meanwhile I moved The official Iraqi news agency A spokesman for the Iraqi Oil Ministry said today, Thursday, that Iraq supports the current “OPEC” plan to increase production by 400,000 barrels per day on a monthly basis.
He added that the vision for the oil market is not clear because of the confusion in global markets. “OPEC is cautiously dealing with pumping operations and production cuts,” he added.
He went on to say that OPEC “does not want to lose the success it achieved by pumping more oil, because the oil markets are still fragile, and any additional quantities could lead to a collapse in prices.”
For its part, the official Kuwait News Agency reported late yesterday, Wednesday, that the Ministry of Oil confirmed in a statement Kuwait’s full commitment to the “OPEC Plus” (OPEC +) alliance agreement, and denied the existence of any prior position regarding the next meeting of the alliance.
The next OPEC+ meeting will be held on the second of December.
The alliance includes members of the Organization of Petroleum Exporting Countries (OPEC) and a number of oil-producing countries outside the organization.
The UAE confirms its commitment to the agreement to declare cooperation in the (OPEC +) group, which contributes to the stability of the market and the balance between supply and demandhttps://t.co/Plk13MLcIx#kona
— KUNA (@kuna_ar) November 25, 2021
Compliance with the OPEC+ agreement
The UAE Ministry of Energy and Infrastructure said that they are committed to the OPEC Plus agreement to reduce production.
The ministry said in a statement issued today, Thursday, that the UAE is fully committed to the agreement to declare cooperation in the OPEC Plus group, and there is no prior position regarding the next meeting.
Two sources from (OPEC) said yesterday that OPEC and its allies in the group known as OPEC Plus are scheduled to hold two meetings next week to determine policies, as a meeting will be held on the first of December for OPEC members only and another meeting on the second of December for OPEC Plus .
UAE Energy Minister Suhail Al Mazrouei told reporters on Tuesday that he did not see any logic in his country supplying more oil to global markets, while all indications indicate that the first quarter of next year will witness an oversupply.
OPEC Plus – whose membership includes Russia – opposes requests from Washington and other consuming countries for a faster increase in production and adheres to its plan to increase production
Gradually by 400,000 barrels per day every month since last August.
The Ministry of Energy and Infrastructure: The UAE is fully committed to the agreement of the “OPEC Plus” cooperation declaration… and there is no prior position regarding the next meeting.# وام pic.twitter.com/jTeaO6d04R
— Emirates News Agency (@wamnews) November 25, 2021
Oil prices are mixed
Oil prices varied in morning trading today, Thursday, between a rise and a fall of 10 cents, in anticipation of steps that the OPEC Plus alliance may resort to after an American decision to reduce crude prices globally.
By 07:37 GMT, the price of Brent crude futures for January delivery rose 0.2% to $82.27 a barrel.
Meanwhile, US West Texas Intermediate crude futures prices for January delivery fell 0.10% to $78.28 a barrel.
Observers believe that the hypothesis of a decline in oil prices, if it occurs after the joint US decision with other crude importing countries, may be temporary, but it will not be decisive in the oil market in the medium or long term.