American Expatriate Costa Rica

Possible agreement in OPEC might be good for them and bad for us

The Organization of Petroleum Exporting Countries (OPEC) will try to seal a deal in Vienna to limit their production and thus stabilize oil prices.

It would be the first agreement in eight years to achieve a reduction in production.

The 14 members of OPEC have been negotiating for weeks to establish quotas of extraction by country and to reach an agreement demanded by the states that depend more on oil (Nigeria, Venezuela…).

The strong rivalry between Iran and Saudi Arabia and the precarious situation of some warring producers (Iraq, Libya) threaten the signing of this pact.

OPEC ministers agreed at an informal meeting in Algiers two months ago to reduce production.

Oil prices, which fell to $26-27 a barrel in early 2016, have grown dramatically since then, thanks to production disruptions and the prospect of an agreement on extraction levels. Since mid-August, ranging from an average of 42 and 53 dollars per barrel.

A growing number of analysts agree that OPEC will be able to achieve some sort of agreement with Russia to reduce output,”

says Fawad Razaqzada, an analyst at Forex.com.

The idea of producing countries is to stabilize the price of oil and then achieve gradual increases in the international price.

crhoy.com