NNIAT Nizhny Novgorod Institute of Applied Technologies

Will OPEC manage to reconcile oil majors

The situation is still unclear on the petroleum market. Just a couple of days ago, oil quotes have plummeted more than 3%, and the price per barrel  has decreased below 59$. The situation has a bit improved to the close of trading.

The market has been being flooded with lots of information. The price collapse occurred just at the moment, when the media announced the overall reduction of oil extraction by 0.5 mln barrels per day instead of 1.5 mln barrels as it had been previously decided.

According to the international media, OPEC meeting went well however the details of the meeting are not announced yet.

Iraqi oil minister expressed his hope, that negotiations eventually would be a success and all the necessary agreements would be reached after all. According to him, the agreement should be reached within OPEC+. The main scenario is still to cut extraction by one million barrels per day.

The Head of Lukoil, who was also present at the meeting, estimated the results of the summit as positive, and added that the solutions, which were discussed by the ministers, would allow to stabilize the market and as a consequence the price per barrel would grow in a short time.

The issue of agreements remains open.