15.01.201911:21 Forex Analysis & Reviews: OPEC will announce the volume of reduction of oil production

Representatives of the cartel plan to publish data on the levels of reduction in oil production by OPEC + countries, according to the agreement on December 7, 2018. It is expected that the publication of these data will help overcome the distrust of the market in relation to the December decision. After the decision of OPEC + to reduce production volumes, the cost of oil Brent continued to decline, dropping to $ 49.3 per barrel. Later it recovered along with the growth of US stock indices. In general, oil futures went up by 20%.

According to specialists, production of OPEC + countries should decrease by 1.195 million barrels per day to 43.874 million barrels. Cartel countries should reduce oil production by 812 thousand barrels to 25.937 million barrels per day, and independent oil producers by 383 thousand barrels to 17.937 million barrels per day. The authorities of the kingdom have already notified OPEC that they will reduce production to 10.2 million barrels per day this month. The volume of oil production in Russia should be less by 230 thousand barrels to 11.191 million barrels per day.

In general, the actual reduction in the production of black gold by OPEC countries will be 3.02%, taking into account relief measures for Iran, Libya and Venezuela. Non-cartel countries will reduce production by 2%.

Experts draw attention to the fact that oil prices largely depend on the market situation, in particular, on the actions of the Federal Reserve System (FRS) of the USA. For example, the rise in oil prices slowed down immediately after the publication of statistical data on inflation in America. According to analysts, the inflation rate was higher than 2%, which is why the Fed can continue to tighten monetary policy.

According to OPEC + plans, a meeting of the Ministerial Monitoring Committee will be held in Baku in the near future scheduled on 17th and 18th of March 2019. A month later on same dates of this year, a ministerial meeting of the countries of the cartel and independent oil producers will take place in Vienna. The closest technical meeting of OPEC will be held between February 7 and 8. It is scheduled to discuss a draft of a perpetual charter of cooperation proposed earlier.