The pep ready to reduce the production to sustain oil
The continuous decrease of the prices of the barrel of oil - fallen Thursday October 9 to 86,59 dollars, in New York, and to 82,66 dollars, in London - woke up the old concerns of the organization of the countries exporters of oil (OPEC), very heedful on the courses since the oil counter-shock of the years 1985-2000.
Without waiting for the summit foreseen December 17 in Oran (Algeria), his/her/its twelve members decided to meet November 18 in the seat of the cartel, in Vienna. They will debate the financial crisis, the world economic situation and his/her/its impact on the market", announced the general secretariat of the organization. In clear, of a possible decrease of the production, that would avoid that the strong fold of the demand of raw in the industrialized countries (United States, Europe, Japan) doesn't accentuate the fall of the prices. The announcement of the extraordinary meeting didn't prevent their receding: the barrel of Brent fell to 79 dollars, Friday morning, in Asia. a variety of standard and custom designed diesel generator,power generator,gasoline generator,portable generator,gas powered water pump and plate compactor to worldwide market with extensive experience. We have abundant capital and handle our own product development, production and after- sales service. .......
Of the members of the OPEC as Iran and Venezuela, whose political stability depends on the public subsidies financed by the oil returns, asked insistently for this summit. Besides the receding of the prices of the black gold, the producers face "the decrease of the value of the investments because of the world financial crisis", indicated to the AFP the president of the Libyan national Company of oil (NOC) and minister of oil. If the prices remain around 80 dollars, add Choker Ghana, "we consider reducing our production seriously and we call the other members of the OPEC, as the producers out OPEC (Russia, Norway, Mexico...), to reduce their production to protect their interests."
The financial storm risks to affect the profitability of the exploration-production projects, whose costs exploded these last years because of the enhancement of the raw materials (steel...), of the shortage of facilities and the technical difficulties (offshore deep, bituminous sands...). Besides, the crisis reduced the value of the financial assets of the countries producers, the petrol-monarchies of the Gulf being the more exposed.
Since his/her/its record of July 11 to 147,50 dollars, the price of the barrel lowered of near 50%. To what level can he/it stabilize? The speculative movements and the unceasing round-trips of the investors on the raw return the difficult answer. Lately, the bank business Merrill Lynch didn't exclude a floor of 50 dollars, his/her/its level of beginning 2005. This doorstep is unacceptable for all countries producers. Today, Iran and Venezuela defend a price floor of 100 dollars, while the president of the OPEC, the Algerian Khaki Hell, spoke lately of 80 dollars.
If the demand of products manufactured come from continuous Asia to lower, the recession in the OECD zone (Organization of cooperation and economic development) will have an impact on the production (notably Chinese) and therefore on the consumption of oil. The Center heart Global Energy Studies of London indicated, in September, that "the contribution of China to the growth of the demand seems about to vacillate." But the decrease of the oil prices would be also a good point for the resumption of the growth.