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Showing results for tags 'production quotas'.
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Oil is touching 50 dollars due to the weak dollar and Middle East tensions 17:25 - 01/04/2021 Information / follow-up. Oil prices touched a multi-month high, today, Monday, thanks to expectations that OPEC and allied producers may restrict production at current levels in February, as the Corona virus pandemic keeps fears about demand in the first half high. Prices rose in line with financial markets in general, while Brent crude reached $ 53.17 a barrel, its highest level since March 2020. US West Texas Intermediate crude touched $ 49.71, its highest since February 2020. Brent crude futures for March delivery reached $ 52.97 a barrel, up $ 1.17, or 2.3%, while US West Texas Intermediate crude futures rose $ 1, or 2.1%, to $ 49.52 a barrel. Tension over the situation in the Middle East also plays a role in the rally of Crude Oil. Acting US Defense Secretary Chris Miller said in a statement that the aircraft carrier USS Nimitz would remain in waters around the Arabian Sea after recent threats from Iran . Virendra Chauhan, an analyst at Energy Aspects, said the broader overall momentum trends, particularly the weakening dollar and investor preparedness for a recovery in the oil sector this year, may provide support for oil prices. "There may be some positive sentiment from the OPEC + study of supplies restriction in light of the virus showing its ugly face in the West," he added. Mohamed Barkindo, OPEC Secretary-General, said on Sunday that while demand for crude is expected to rise by 5.9 million barrels per day to 95.9 million barrels per day this year, the organization expects many risks that threaten the descent of demand in the first half of 2021. And prices ended 2020 20% lower than the average of 2019, as it is still recovering from the impact of global isolation measures, which reduced the demand for fuel, even at a time when major producers around the world agreed to implement record production cuts. OPEC and allied producers including Russia, a group known as OPEC +, decided last month to increase production by 500,000 barrels per day in January, in anticipation of increased demand, and agreed to hold a monthly meeting to review production. Analysts from Energy Aspects and RBC Capital say OPEC + is likely to keep production levels at their own from January to February. 25 S. -
The Minister Of Finance Warns ... Iraq May Withdraw From OPEC Allawi: Either reduce spending or declare bankruptcy On November 26, 2020 The Minister of Finance, Ali Abdul-Amir Allawi, specified two things that would happen in the event that oil prices did not rise or public spending was pressured, while stressing that OPEC's plan to reduce oil production was close to reaching an unbearable stage and suggested that Iraq might leave the system. Allawi said in a statement to the British newspaper, The Guardian, followed by the "Independent" today, Thursday, that "the economy of Iraq is riven by corruption to a large extent, to the extent that the exchange of secondary job sites at a border police station costs an amount that may reach 100,000 dollars or more." Regarding the efforts made by the government to introduce reforms, Allawi said that "there are no quick achievements," indicating "the possibility that the economy will remain in a long latent crisis unless the price of oil reaches $ 70 a barrel and for a continuous period." The country is dwindling in resources. Allawi pointed out that "what reached the Iraqi treasury of the annual border crossings' dues of 8 billion dollars, is only one tenth of them, in contrast to Jordan, which receives 97% of the imports of its crossings." Corruption eats away at border crossings He pointed out that "the border outposts are so fraught with corruption that the handing over of the job of a secondary clerk to another at some outposts may take place for between 50,000 and 100,000 dollars, and sometimes the amount increases many times that." According to the British newspaper, "Allawi likened the situation of Iraq, as it is at the arrival of the dry season, to a pool of water in Africa, by saying: Where the fish becomes frenzied because of the low levels of oxygen ... Many of these people do not know how to extract a wage from this dwindling pond." Allawi continued, saying, "If we assume that oil prices will not rise, one of the two things is bound to happen .. Either we follow the Venezuelan approach and our economy becomes oil-based, which leads us to bankruptcy, or we tighten our belts." Option to tighten belts The minister went on to say, "No one will go to the option of tightening the belts, but there is a subconscious acknowledgment of the need to make a change," indicating that "the current rates of public spending cannot remain the same." The Deputy Prime Minister added: "I would like to say that at a certain stage it requires someone to say no, and I think it is out of my responsibility to say no, but at a certain point you can say, no, only and then they will respond to you with the word no." . He explained, "Many of the country's problems are in a thorny situation, and wherever there is a problem that requires a solution, there is a vested interest in it. Sometimes that interest is so strong that it stands as a stumbling block to the solution." Iraq’s withdrawal from OPEC Allawi added, "Iraq’s acceptance of OPEC’s plan to reduce production without taking the organization into consideration of the economic and political conditions of the member states. It is close to reaching an unbearable stage, and hinting that Iraq might leave the system." In his dialogue on the role of US forces in Iraq, Allawi said, "What is related to the importance of the American presence, it has shifted from being a fundamental factor for stability to being a formal presence to some extent."
