According to information on the website of the Organization of Petroleum Exporting Countries (OPEC), the world’s leading oil producing countries will meet in 2 days July 1-2 in Vienna (Austria) after delaying several times. before.
Oil-producing countries, led by Saudi Arabia, are expected to make a decision on whether to extend the reduction agreement.
Investors appreciate the information about the above meeting plan.
OPEC’s 176th meeting took place after the 6th meeting of officials from inside and outside OPEC countries, including Russia.
Meanwhile, an official who will attend the meeting but does not publicly identify the countries that have accepted the plan and said the decision was made on June 18.
This meeting is expected to take place in April 2019 but was postponed until June 2019 and back again to the beginning of July 2019.
Investors expect OPEC and Russia’s coal-oil-producing countries to lead the deal to extend the cut after expiring in late June to overcome oversupply.
Meanwhile, according to ANZ Bank, Saudi Arabia has cut production before the meeting takes place.
In addition, Saudi Arabia is preparing to urge other countries such as Iraq and Nigeria to better comply with the deal to cut output "black gold."
In March 2019, OPEC and coal-oil producing countries said they would continue their concerted efforts to stabilize the oil market through production cuts.
Meanwhile, in the latest monthly report published on June 13, OPEC lowered its forecast for global oil demand growth and warned of the risk of further declines due to trade disputes.
This opens up the possibility that OPEC and non-OP countries will continue their plan to cut supply in the rest of 2019.
According to forecasts, world oil demand is expected to increase 1.14 million barrels a day this year, 70,000 barrels a day lower than previous estimates.
During the first half of 2019, global trade tensions escalated and the risks associated with these disputes continue to affect the increase in oil demand worldwide.
In addition to lowering the forecast for oil demand, OPEC said oil reserves in developed economies have increased in April, a trend that could raise concerns about oil surplus. In the future, in April, it exceeded the 5-year average of 7.6 million barrels
