Wednesday, 17 February 2016

Oil ministers’ output freezing deal in Qatar explained - FT.com

Oil ministers’ output freezing deal in Qatar explained - FT.com:

"At a meeting in Doha on Tuesday, oil ministers from Qatar, Russia, Saudi Arabia and Venezuela agreed to freeze — not cut — output at the levels reported in January in an attempt to prop up prices that have cratered from $115 a barrel in mid-2014 to just above $30 a barrel today.

All of the countries have been hit hard by the decline in prices, in particular Venezuela which has been trying to marshal support for co-ordinated action to stabilise prices. The provisional “freeze” comes ahead of the next Opec ministerial meeting in June.
Russia is estimated to have pumped a post-Soviet record of 10.88m barrels a day in January, which might explain why it has been willing to sign up to a deal. Its output is already forecast to decline slightly by the end of 2016. Equally, Saudi Arabia’s production has remained close to record levels above 10m b/d for almost 12 months."



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