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OPEC has not reached agreement to reduce oil production

OPEC has not reached agreement to reduce oil production
  • EFE

After the meeting of OPEC for this 2018, held this Thursday in Vienna, one of the most notorious news was the exit of Qatar from this organization, so without deciding cuts or new measures, the organization has already lost an important member even before this conversation, after the announcement made by the country, since last December 3.

By means of a letter sent to the Secretary General of the organization, Mohammad Sanusi, the Organization of Petroleum Exporting Countries (OPEC) announced the news regretted by Manuel Quevedo and Carlos Pérez, oil ministers of Venezuela and Ecuador respectively.

"We respect the decisions; we will always keep in touch with them, they are always invited to continue remaining in the organization; we invite them to return (...) In the near future, maybe we will see Qatar again," said Quevedo, who for 2019 will chair this institution.

Meanwhile, his Ecuadorian counterpart said he regrets the decision, "because what I see is that unity among countries must be maintained (...), and it is worrying Qatar’s exit, but obviously, these are decisions that each country must make based on its needs and interests."

Both diplomats agreed that in the face of the situation with oil production and considerable reductions in prices, unity among the members of the organization is vital, so as they await the return of Qatar, they also expect teamwork willingness by their teammates.

Based on the possible production cut, Carlos Pérez announced that there was no estimate; however experts in the area emphasize that it can vary between 1 and 1.5 mbd, before what US President Donald Trump noted that it would be a considerably negative measure, since what the world needs least is a drop in the price of oil.

In this case, the most affected country would be the next to preside over OPEC, Venezuela, which in the face of the constant social and economic problems, whose economy is supported and based on oil, to pay its main allies (Cuba , China and Russia and to obtain the necessary foreign currency monthly (sale to the United States).

At the end of the six-hour meeting, it was announced that they had not reached an agreement on the measure, since despite the initiative to reduce production, different positions are manifested among its members. Saudi Arabia is the main promoter of the measure and also had words for the United States, stating that OPEC does not need orders.

Meanwhile, Iran said that while the US sanctions are in force, they will not accept any reduction in their national production. Venezuela, through Quevedo, kept the line of Saudi Arabia when noting that the United States should stay out of what happens in OPEC.

For this Thursday it is expected that the board of directors of the organization hold a meeting with non-member countries that conform to the production plan presented. While everything is heading, oil has suffered a considerable decline in the world at the time of listing.

Source-EFE

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